New Flex Complex Investment
For Sale
$4,900,000
645 Sandpiper Trl, Cottage Grove, WI 53527
New flex complex in Cottage Grove with long-term tenant.
Property Size19,623 SF
Lot Size2.27 Acres
Price / SF$249.71
Days on Market197
Property Features for 645 Sandpiper Trl
General Information
Standard status
Active
Size
19,623 SF
Lot size
2.27 Acres
Taxes and HOA fees
Annual Taxes
$37,895
Listing Agency:
American, REALTORS
(608) 213-6686
Listed By:
David Baehr · License #5260990
(608) 213-6686
Source:
Exprealty
Added: Jan 26
Changed: Aug 8
Last Checked: Aug 8 at 6:05AM
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 American, REALTORS
Investment Insights
Based on property information with market context.
This is an exceptional investment opportunity to acquire a new 19,623 square foot flex complex located in Cottage Grove. The property is designed for retail, office, and warehouse use. It is strategically located in the expanding Madison economic hub, offering visibility, accessibility, and long-term appreciation potential. The property is secured by a high-quality tenant under a 10-year lease with 2% annual rent increases, delivering a 7.3% cap rate and reliable cash flow. Combining new construction with a strong tenant commitment, this asset offers investors a secure, low-maintenance property positioned for both immediate income and sustained growth in a thriving market.
Key Highlights
- New 19,623 SF flex complex in rapidly growing Cottage Grove.
- Secured by a 10‑year lease with New Tech, a high‑quality tenant.
- Generates a solid 7.3% cap rate with reliable cash flow.
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
$271,480
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
5.54%
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%
$5,429,600
$5.4M
Cap Rate 7%
$3,878,286
$3.9M
Cap Rate 9%
$3,016,444
$3.0M
Market Conditions
NOI Build-Up for 19,623 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
$430.9K $21.96/SF
− Vacancy
−$68.9K −$3.51/SF
EGI
$362.0K $18.45/SF
− OpEx
−$90.5K −$4.61/SF
NOI
$271.5K $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%
$5,429,600
Cap Rate 7%
$3,878,286
Cap Rate 9%
$3,016,444
Alternative Uses
Best Use
Office B
$3.88M
$3.39M – $4.52M
NOI $271,480 @ 7.0% cap · market cap 5.54%
Second Best
Warehouse
$3.34M
$2.92M – $3.90M
NOI $233,941 @ 7.0% cap · market cap 4.77%
Theoretical Best
Office A
$4.56M
$3.99M – $5.32M
NOI $319,198 @ 7.0% cap · market cap 6.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
111
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 - New flex complex in Cottage Grove with long-term tenant.
Where is this flex space located?
The property is located at 645 Sandpiper Trl 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: New 19,623 SF flex complex in rapidly growing Cottage Grove.; Secured by a 10‑year lease with New Tech, a high‑quality tenant.; Generates a solid 7.3% cap rate with reliable cash flow.
