Building Details

Building Size 19,629 SF

Year Built 2013

Stories 1

Units 29

Listing Agency: Eos Realty, LLC k***@gmail.com Show Phone

Listed By: Kristopher G. Jacobsen Show Phone

Source: Ivyrealestategroup

Added: Apr 13 Changed: Aug 23 Last Checked: Aug 25 at 9:03AM

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Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Eos Realty, LLC

Investment Insights

Based on property information with market context.

This turn-key assisted living facility is configured as a 29-unit property and was built in 2013. The building has been meticulously maintained and includes a commercial-grade kitchen to support day-to-day operations.

The property is situated right off Pelican Lake in Orr, Minnesota, and is offered for sale on 3.65 acres.

With over 19,000 square feet of space and a prior assisted living use, the facility is designed to operate as a healthcare residential setting.

Key Highlights

• Turn‑key 29‑unit assisted living facility on 3.65 acres
• Built in 2013 and previously used as an assisted living facility
• Over 19,000 SF facility space

Financial Insights

Estimated NOI and Cap Rate

NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).

NOI / Yr

$155,596

Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.

Cap Rate

5.37%

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$3,111,920 $3.1M

Cap Rate 7%

$2,222,800 $2.2M

Cap Rate 9%

$1,728,844 $1.7M

Market Conditions

NOI Build-Up for 19,000 SF Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent. EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs. OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements. NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.

Gross rent

$301.0K $15.84/SF

− Vacancy

−$18.1K −$0.95/SF

EGI

$282.9K $14.89/SF

− OpEx

−$127.3K −$6.70/SF

NOI

$155.6K $8.19/SF

Area

St. Louis County, MN

Vacancy

6.00%

Lease Rate

$15.84 /SF/Yr

Expense Ratio

45.00%

Simulate Cap Rate and NOI

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$3,111,920

Cap Rate 7%

$2,222,800

Cap Rate 9%

$1,728,844

Alternative Uses

Best Use

Apartment 5plus

$2.22M

$1.94M – $2.59M (±1% cap)

NOI $155,596 @ 7.0% cap · market cap 5.37%

Second Best

—

—

no second resolved use

Theoretical Best

Specialty Retail

$7.37M

$6.45M – $8.60M (±1% cap)

NOI $515,928 @ 7.0% cap · market cap 17.80%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Carefree Living Orr Nursing Home

Suggested Use

Top Pick Building Supply Storage Facility (Bike/Boat/Book/etc) Store Bakery Parking Lot & Garage Grocery & Convenience Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

29

Residential units

Turnkey business

Opportunity

Location Intelligence

Trade Area within ½ mile

61

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 55771, MN

1,485

Population

1,904

Households

0.8

Avg Household Size

53

Median Age

21%

College-Educated

92%

High-School Grad

1,115.4 sq mi

ZIP Area

1

Density / Sq Mi

$65,893

Median Household Income

$27,163

Median Earnings

$850

Median Rent

$167,700

Median Home Value

Questions? Ask Rey

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What type of property is this? Where is this assisted living facilities located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Assisted living facility - Turn-key 29-unit assisted living facility built in 2013 with a commercial-grade kitchen.

Where is this assisted living facility located?

The property is located at 4576 Lake Street Orr, MN.

What is the asking price?

The asking price for this property is $2,899,000.

What are key features of this property?

This property features: Turn‑key 29‑unit assisted living facility on 3.65 acres; Built in 2013 and previously used as an assisted living facility; Over 19,000 SF facility space