Acoustically Treated Creative
For Sale
$850,000
607 Central Ave Ne, Minneapolis, MN
Established recording studio with integrated wiring, sound treatment, and dedicated HVAC serving a flexible creative workspace.
Property Size3,143 SF
Price / SF$270.44
Days on Market28
Property Features for 607 Central Ave Ne
General Information
Standard status
Active
Size
3,143 SF
Additional Details
Road Access
Yes
Taxes and HOA fees
Annual Taxes
$17,134
Building Details
Buildings
1
Building Size
3,143 SF
Listing Agency:
Northeast Realty LLC
(612) 379-3377
Listed By:
Timothy C Mershon
(612) 379-3377
Source:
Exprealty
Added: Jul 17
Changed: Aug 13
Last Checked: Aug 13 at 6:55AM
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 Northeast Realty LLC
Investment Insights
Based on property information with market context.
This approximately 3143 SF professional recording studio is configured around specialized production use, with extensive wiring, acoustic treatment, and integrated studio infrastructure. The building includes a 3/4 bath and half bath, along with a new 4-zone HVAC system with heat pump installed in 2024. Roofing was replaced in 2019, and exterior repairs have also been completed.
The property occupies a highly visible position along Central Avenue NE in Minneapolis, near bars, restaurants, apartments, and a grocery store. Downtown Minneapolis and the University of Minnesota are minutes away. Studio equipment is excluded from the sale but may be purchased separately.
The property occupies a highly visible position along Central Avenue NE in Minneapolis, near bars, restaurants, apartments, and a grocery store. Downtown Minneapolis and the University of Minnesota are minutes away. Studio equipment is excluded from the sale but may be purchased separately.
Key Highlights
- Approximately 3143 SF professional recording studio
- Fully wired and acoustically treated recording environment
- New 4‑zone HVAC system with heat pump installed in 2024
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
$39,277
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
4.62%
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%
$785,540
$785.5K
Cap Rate 7%
$561,100
$561.1K
Cap Rate 9%
$436,411
$436.4K
Market Conditions
NOI Build-Up for 3,143 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
$65.6K $20.88/SF
− Vacancy
−$13.3K −$4.22/SF
EGI
$52.4K $16.66/SF
− OpEx
−$13.1K −$4.17/SF
NOI
$39.3K $12.50/SF
Area
Minneapolis, MN
Vacancy
20.20%
Lease Rate
$20.88 /SF/Yr
Expense Ratio
25.00%
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%
$785,540
Cap Rate 7%
$561,100
Cap Rate 9%
$436,411
Alternative Uses
Best Use
Office B
$561.1K
$491.0K – $654.6K
NOI $39,277 @ 7.0% cap · market cap 4.62%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$749.9K
$656.1K – $874.8K
NOI $52,490 @ 7.0% cap · market cap 6.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
647
Businesses Nearby
Explore this area
Business Placement
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Creative space - Established recording studio with integrated wiring, sound treatment, and dedicated HVAC serving a flexible creative workspace.
Where is this creative space located?
The property is located at 607 Central Ave Ne Minneapolis, MN.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: Approximately 3143 SF professional recording studio; Fully wired and acoustically treated recording environment; New 4‑zone HVAC system with heat pump installed in 2024
