Class-A Flex Complex with Warehouse
For Sale
$4,900,000
645 Sandpiper Trail, Cottage Grove, WI 53527
Business/Comm, Cottage Grove, WI
Property Size19,211 SF
Lot Size2.27 Acres
Price / SF$255.06
Days on Market49
Property Features for 645 Sandpiper Trail
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
PB
Security features
Security System
Interior features
Overhead doors, Truck dr(s) 15ft or lower, Private Restrooms, 3 phase electric, Reception area, Signage available, Security system, Internal sprinkler, Private office(s)
Lot features
Business district, Corner
Directions
Northwest Corner of Cottage Grove Rd and Sandpiper Trl
Subdivision
COTTAGE GROVE - V
Standard status
Active
APN
0711-081-4822-1
Size
19,211 SF
Lot size
2.27 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
37895
Building Details
Year built
2024
Number of units
1
Roof type
Membrane
Listing Agency:
American, REALTORS
(608) 834-2600
Listed By:
David Baehr · License #5260990
(608) 213-6686
Added: Jul 15
Changed: Aug 31
Last Checked: Sep 1 at 3:06PM
MLS# 2025939
Copyright © 2026 REALTORS® Association of South Central Wisconsin. 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.
Completed in 2024, this 19,211-square-foot flex complex includes a 14,737-square-foot primary building and a detached 4,474-square-foot structure. The property supports a mix of office, showroom, retail, and warehouse functions, with overhead doors, private restrooms, 3-phase electric service, reception space, private offices, internal sprinklers, and a security system. A membrane roof and available signage add to the functional configuration.
The primary building is mostly vacant, while the detached building is fully leased. The improvements occupy 2.27 acres at 645 Sandpiper Trail in Cottage Grove, Wisconsin, within PB zoning. The property is positioned within the Madison-area market and offers a combination of flexible commercial space and an occupied secondary building.
The primary building is mostly vacant, while the detached building is fully leased. The improvements occupy 2.27 acres at 645 Sandpiper Trail in Cottage Grove, Wisconsin, within PB zoning. The property is positioned within the Madison-area market and offers a combination of flexible commercial space and an occupied secondary building.
Key Highlights
- 19,211 SF flex complex on 2.27 acres
- 14,737 SF main building plus 4,474 SF detached building
- Detached building is 100% leased
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
$265,780
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
5.42%
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%
$5,315,600
$5.3M
Cap Rate 7%
$3,796,857
$3.8M
Cap Rate 9%
$2,953,111
$3.0M
Market Conditions
NOI Build-Up for 19,211 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
$421.9K $21.96/SF
− Vacancy
−$67.5K −$3.51/SF
EGI
$354.4K $18.45/SF
− OpEx
−$88.6K −$4.61/SF
NOI
$265.8K $13.83/SF
Area
Dane County, WI
Vacancy
16.00%
Lease Rate
$21.96 /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%
$5,315,600
Cap Rate 7%
$3,796,857
Cap Rate 9%
$2,953,111
Alternative Uses
Best Use
Office B
$3.80M
$3.32M – $4.43M
NOI $265,780 @ 7.0% cap · market cap 5.42%
Second Best
Warehouse
$3.27M
$2.86M – $3.82M
NOI $229,029 @ 7.0% cap · market cap 4.67%
Theoretical Best
Office A
$4.46M
$3.91M – $5.21M
NOI $312,496 @ 7.0% cap · market cap 6.38%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
156
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 53527, WI
10,994
Population
4,732
Households
2.3
Avg Household Size
40
Median Age
48%
College-Educated
99%
High-School Grad
35.8 sq mi
ZIP Area
307
Density / Sq Mi
$119,808
Median Household Income
$60,027
Median Earnings
$1,531
Median Rent
$402,500
Median Home Value
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?
Flex space - Newer flex property combines office, showroom, retail, and warehouse areas with separate leased improvements.
Where is this flex space located?
The property is located at 645 Sandpiper Trail Cottage Grove, WI.
What is the asking price?
The asking price for this property is $4,900,000.
What are key features of this property?
This property features: 19,211 SF flex complex on 2.27 acres; 14,737 SF main building plus 4,474 SF detached building; Detached building is 100% leased
