Rehabilitated Duplex With
For Sale
$437,900
518 37th Ave NE, Minneapolis, MN 55421
Updated income property with flexible lower-level living space and outdoor areas serving both primary units.
Property Size2,700 SF
Price / SF$162.19
Days on Market28
Property Features for 518 37th Ave NE
General Information
Standard status
Active
Size
2,700 SF
Property subtype
Multi-Family
Property Condition
Severity
Repairs Needed
Evidence
stucco repairs
Additional Details
Public Transit
Yes
Multifamily Units
3
Amenities
private back walk out patio
Building Details
Year Built
1965
Listing Agency:
National Realty Guild
Listed By:
Tracy Farkas
(651) 494-4000
Source:
Agoodlifegroup
Added: Aug 12
Changed: Sep 7
Last Checked: Sep 8 at 12:12PM
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 National Realty Guild
Investment Insights
Based on property information with market context.
Built in 1965, this 2,700-square-foot duplex has undergone interior and exterior improvements, including stucco repairs, fresh paint, updated flooring, carpet, select windows, and appliances. The lower level of 518 includes a mother-in-law apartment with a kitchenette, bedroom, family room, and separate walkout. Both primary units also have access to a private rear walkout patio.
The property is located on a bus line with convenient proximity to downtown, the university, shopping, and restaurants. Its layout provides distinct living areas within a two-unit zoning framework, with additional lower-level accommodations that expand the property's functional flexibility.
The property is located on a bus line with convenient proximity to downtown, the university, shopping, and restaurants. Its layout provides distinct living areas within a two-unit zoning framework, with additional lower-level accommodations that expand the property's functional flexibility.
Key Highlights
- 2,700 SF duplex built in 1965
- Exterior stucco repairs and fresh paint completed
- Rehabbed interiors with updated flooring, carpet, appliances, paint, and some windows
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
$39,449
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
9.01%
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%
$788,980
$789.0K
Cap Rate 7%
$563,557
$563.6K
Cap Rate 9%
$438,322
$438.3K
Market Conditions
NOI Build-Up for 2,700 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
$59.9K $22.20/SF
− Vacancy
−$3.6K −$1.33/SF
EGI
$56.4K $20.87/SF
− OpEx
−$16.9K −$6.26/SF
NOI
$39.4K $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%
$788,980
Cap Rate 7%
$563,557
Cap Rate 9%
$438,322
Alternative Uses
Best Use
Multifamily LT 5
$563.6K
$493.1K – $657.5K
NOI $39,449 @ 7.0% cap · market cap 9.01%
Second Best
Apartment 5plus
$517.6K
$452.9K – $603.9K
NOI $36,233 @ 7.0% cap · market cap 8.27%
Theoretical Best
Office A
$644.2K
$563.6K – $751.5K
NOI $45,091 @ 7.0% cap · market cap 10.30%
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
631
Businesses Nearby
Explore this area
Business Placement
Demographics for 55421, MN
30,580
Population
13,247
Households
2.3
Avg Household Size
37
Median Age
34%
College-Educated
90%
High-School Grad
6.3 sq mi
ZIP Area
4,854
Density / Sq Mi
$75,141
Median Household Income
$44,242
Median Earnings
$1,281
Median Rent
$260,500
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?
Duplex - Updated income property with flexible lower-level living space and outdoor areas serving both primary units.
Where is this duplex located?
The property is located at 518 37th Ave NE Minneapolis, MN.
What is the asking price?
The asking price for this property is $437,900.
What are key features of this property?
This property features: 2,700 SF duplex built in 1965; Exterior stucco repairs and fresh paint completed; Rehabbed interiors with updated flooring, carpet, appliances, paint, and some windows
