Updated Triplex with
For Sale
$475,000
505 8th Avenue SE, Minneapolis, MN 55414
Residential Income, Minneapolis, MN
Property Size1,964 SF
Lot Size0.09 Acres
Price / SF$241.85
Days on Market21
Property Features for 505 8th Avenue SE
General Information
Property type
Residential Multi Family
Property subtype
Triplex
Zoning description
Residential-Single Family
Bedrooms
3
Bathrooms
3
Full bathrooms
3
Rooms
Bathroom 2, Bedroom 3, Bathroom 3, Bedroom 2, Bedroom 1, Bathroom 1, Basement
Parking features
Driveway, Garage - Detached
Exterior features
Shakes
Subdivision
Mill Cos Add To St Anthony Falls
Lot features
Public Transit (w/in 6 blks), Tree Coverage - Medium
High school district
Minneapolis
Directions
4th Street SE to 8th Ave SE (north)
Standard status
Active
APN
2402924230038
Size
1,964 SF
Lot size
0.09 Acres
Taxes and HOA fees
Tax Year
2026
Tax Annual Amount
7182
Utilities
Heating system
Forced Air
Amenities
hardwood floors
natural woodwork
high ceilings
front and back porches
walk-up attic
Building Details
Year built
1900
Building materials
Frame
Roof type
Shingle
Listing Agency:
RE/MAX Results · RE/MAX International
(952) 884-8404
Listed By:
Thomas J Buratti
(952) 829-2900
Added: Aug 3
Changed: Aug 20
Last Checked: Aug 23 at 4:06PM
MLS# 7120959
Copyright © 2026 Northstar MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 1964-square-foot triplex, built in 1900, combines classic residential details with meaningful system updates. The frame building has hardwood floors, natural woodwork, high ceilings, front and rear porches, and a walk-up attic. Improvements include three newer forced-air furnaces, separate heat meters, updated electrical service with separated meters, updated windows, and three newer hot water heaters. The upper unit has central air conditioning, while the other two units use window AC units.
Located at 505 8th Avenue SE in Minneapolis’ Marcy-Holmes neighborhood, the property is near the University of Minnesota and downtown Minneapolis. Tenants pay their own heat and electricity. Site features include a driveway, detached garage, shingle roofing, shakes siding, and a basement.
Located at 505 8th Avenue SE in Minneapolis’ Marcy-Holmes neighborhood, the property is near the University of Minnesota and downtown Minneapolis. Tenants pay their own heat and electricity. Site features include a driveway, detached garage, shingle roofing, shakes siding, and a basement.
Key Highlights
- Three‑unit triplex with 1964 square feet of building area
- 0.09‑acre lot with driveway and detached garage
- Three newer forced‑air furnaces with separate heat meters
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
$28,695
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
6.04%
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%
$573,900
$573.9K
Cap Rate 7%
$409,929
$409.9K
Cap Rate 9%
$318,833
$318.8K
Market Conditions
NOI Build-Up for 1,964 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
$43.6K $22.20/SF
− Vacancy
−$2.6K −$1.33/SF
EGI
$41.0K $20.87/SF
− OpEx
−$12.3K −$6.26/SF
NOI
$28.7K $14.61/SF
Area
Minneapolis, MN
Vacancy
5.98%
Lease Rate
$22.20 /SF/Yr
Expense Ratio
30.00%
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%
$573,900
Cap Rate 7%
$409,929
Cap Rate 9%
$318,833
Alternative Uses
Best Use
Multifamily LT 5
$409.9K
$358.7K – $478.3K
NOI $28,695 @ 7.0% cap · market cap 6.04%
Second Best
Apartment 5plus
$376.5K
$329.5K – $439.3K
NOI $26,356 @ 7.0% cap · market cap 5.55%
Theoretical Best
Office A
$468.6K
$410.0K – $546.7K
NOI $32,800 @ 7.0% cap · market cap 6.91%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Residential units
Location Intelligence
Trade Area within ½ mile
1,479
Businesses Nearby
Explore this area
Business Placement
Demographics for 55414, MN
36,600
Population
15,541
Households
2.4
Avg Household Size
26
Median Age
68%
College-Educated
93%
High-School Grad
3.1 sq mi
ZIP Area
11,806
Density / Sq Mi
$47,004
Median Household Income
$18,386
Median Earnings
$1,368
Median Rent
$454,200
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Triplex - Three-unit property with separately metered utilities, a detached garage, and a walk-up attic for storage.
Where is this triplex located?
The property is located at 505 8th Avenue SE Minneapolis, MN.
What is the asking price?
The asking price for this property is $475,000.
What are key features of this property?
This property features: Three‑unit triplex with 1964 square feet of building area; 0.09‑acre lot with driveway and detached garage; Three newer forced‑air furnaces with separate heat meters
