Commercial Property on Highway
For Sale
Contact for pricing
5401 Birchdale Rd, Brainerd, MN 56401
Commercial investment property with excellent visibility and tenant in place.
Property Size5,800 SF
Price / SF$120.52
Days on Market162
Property Features for 5401 Birchdale Rd
General Information
Standard status
Active
Size
5,800 SF
Total Parking Spaces
27
Property subtype
Retail
Zoning
C-2
Building Details
Year Built
1940
Year Renovated
1960
Listing Agency:
Close-Converse Commercial Properties
(218) 828-3334
Listed By:
Chris Close, CCIM · License #MN 20286846
Source:
Crexi
Added: Mar 11
Changed: Aug 10
Last Checked: Aug 18 at 6:59PM
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 Close-Converse Commercial Properties
Investment Insights
Based on property information with market context.
This commercial property is positioned along the highly traveled Hwy 371 corridor near Brainerd International Raceway, offering excellent visibility and easy access in a strong regional trade area. The building, with a total property size of 5800 square feet, is currently occupied by Valley Pools & Spas. The property features a large retail showroom with supporting offices and storage areas, along with a warehouse and cold storage, both equipped with overhead doors. This functional layout, established tenant occupancy, and prime highway exposure, presents a compelling opportunity for investors seeking commercial real estate along one of Central Minnesota’s busiest corridors. The property includes part of Govt Lot 5, described as follows: commencing at the southwest corner of said Govt Lot 5, then north 00 degrees 02 minutes 00 seconds east, assumed bearing, 1000 feet along the west line of said Govt Lot 5 to the north line of the south 1000 feet of said Govt Lot 5, then point of beginning of the Tract to be described, then north 89 degrees 57 minutes 30 seconds east 500 feet along said north line of the south 100-0 feet of Govt Lot 5, then south 85 degrees 05 minutes 41 seconds east 430.56 feet to the westerly line of the Tract deeded to Montgomery by the Deed recorded in Book 191 of Deeds, page 485, then north 00 degrees 02 minutes 00 seconds east 69.66 feet along said westerly line of the Tract deeded to Montgomery, then north 69 degrees 55 minutes 30 seconds west 295.13 feet along said westerly line of the Tract deeded to Montgomery, then south 83 degrees 30 minutes 00 seconds west 247.37 feet, then north 06 degrees 26 minutes 00 seconds west 100 feet, then south 83 degrees 30 minutes 00 seconds west 397.30 feet to said west line of Govt Lot 5, then south 00 degrees 02 minutes 00 seconds west 160.90 feet along said west line of Govt Lot 5 to the point of beginning.
Key Highlights
- Prime highway exposure on highly traveled Hwy 371 near Brainerd International Raceway.
- Currently occupied by Valley Pools & Spas, providing immediate tenant income.
- Functional layout with retail showroom, offices, storage, warehouse, and cold storage.
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
$53,787
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
7.69%
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%
$1,075,740
$1.1M
Cap Rate 7%
$768,386
$768.4K
Cap Rate 9%
$597,633
$597.6K
Market Conditions
NOI Build-Up for 5,800 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
$83.5K $14.40/SF
− Vacancy
−$6.7K −$1.15/SF
EGI
$76.8K $13.25/SF
− OpEx
−$23.1K −$3.97/SF
NOI
$53.8K $9.27/SF
Area
Crow Wing County, MN
Vacancy
8.00%
Lease Rate
$14.40 /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%
$1,075,740
Cap Rate 7%
$768,386
Cap Rate 9%
$597,633
Alternative Uses
Best Use
Office B
$939.6K
$822.2K – $1.10M
NOI $65,772 @ 7.0% cap · market cap 9.41%
Second Best
Retail
$768.4K
$672.3K – $896.5K
NOI $53,787 @ 7.0% cap · market cap 7.69%
Theoretical Best
Office A
$1.23M
$1.08M – $1.44M
NOI $86,193 @ 7.0% cap · market cap 12.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
63
Businesses Nearby
Explore this area
Business Placement
Demographics for 56401, MN
30,632
Population
16,038
Households
1.9
Avg Household Size
40
Median Age
24%
College-Educated
94%
High-School Grad
322.6 sq mi
ZIP Area
95
Density / Sq Mi
$70,269
Median Household Income
$40,172
Median Earnings
$918
Median Rent
$237,900
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Commercial investment property with excellent visibility and tenant in place.
Where is this retail space located?
The property is located at 5401 Birchdale Rd Brainerd, MN.
What is the asking price?
The asking price for this property is $699,000.
What are key features of this property?
This property features: Prime highway exposure on highly traveled Hwy 371 near Brainerd International Raceway.; Currently occupied by Valley Pools & Spas, providing immediate tenant income.; Functional layout with retail showroom, offices, storage, warehouse, and cold storage.
