Richfield Retail Strip Center For
For Sale
Contact for pricing
6621 Penn Ave S, Minneapolis, MN 55423
Unanchored neighborhood strip center in Richfield location.
Property Size7,000 SF
Price / SF$282.14
Days on Market158
Property Features for 6621 Penn Ave S
General Information
Standard status
Active
Size
7,000 SF
Class
C
Total Parking Spaces
25
Property subtype
Retail, Office
Zoning
Shopping center
Occupancy
100%
Lease Type
NNN
Investment Type
Stabilized
Net Operating Income
$145,000
Building Details
Year Built
1952
Buildings
1
Stories
1
Units
7
Tenancy
Multi
Listing Agency:
Real Estate Masters LTD
Listed By:
Dave Kunert · License #MN 20232195
Source:
Crexi
Added: Mar 15
Changed: Aug 8
Last Checked: Aug 8 at 6:31AM
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 Real Estate Masters LTD
Investment Insights
Based on property information with market context.
This stabilized unanchored neighborhood strip center is located in Richfield, Minnesota, approximately 4 minutes from Southdale Mall. The property is situated on Penn Avenue and 66th Street. The property is suitable for commercial real estate and retail purposes.
Key Highlights
- Stabilized neighborhood strip center
- Rare opportunity
- Awesome Richfield location at Penn and 66th
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
$76,983
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
3.90%
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%
$1,539,660
$1.5M
Cap Rate 7%
$1,099,757
$1.1M
Cap Rate 9%
$855,367
$855.4K
Market Conditions
NOI Build-Up for 7,000 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
$119.3K $17.04/SF
− Vacancy
−$9.3K −$1.33/SF
EGI
$110.0K $15.71/SF
− OpEx
−$33.0K −$4.71/SF
NOI
$77.0K $11.00/SF
Area
ZIP 55423
Vacancy
7.80%
Lease Rate
$17.04 /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%
$1,539,660
Cap Rate 7%
$1,099,757
Cap Rate 9%
$855,367
Alternative Uses
Best Use
Retail
$1.10M
$962.3K – $1.28M
NOI $76,983 @ 7.0% cap · market cap 3.90%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.05M
$1.80M – $2.40M
NOI $143,717 @ 7.0% cap · market cap 7.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
623
Businesses Nearby
53k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 56%
Dining 39%
Home Improvements & Furnishings 3%
Beauty & Spa 3%
Speedway
Shops & Services
21,251 visits/mo
0.5 miles
Dunkin' Donuts
Dining
13,099 visits/mo
0.2 miles
BP
Shops & Services
6,711 visits/mo
0.1 miles
SUBWAY
Dining
5,023 visits/mo
0.2 miles
Davanni's Pizza and Hot Hoagies
Dining
2,542 visits/mo
0.4 miles
Demographics for 55423, MN
37,137
Population
16,792
Households
2.2
Avg Household Size
37
Median Age
44%
College-Educated
91%
High-School Grad
7.1 sq mi
ZIP Area
5,231
Density / Sq Mi
$84,102
Median Household Income
$52,890
Median Earnings
$1,334
Median Rent
$320,300
Median Home Value
Market
Vacancy Rate% for Retail in Minneapolis, MN
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Strip mall - Unanchored neighborhood strip center in Richfield location.
Where is this strip mall located?
The property is located at 6621 Penn Ave S Minneapolis, MN.
What is the asking price?
The asking price for this property is $1,975,000.
What are key features of this property?
This property features: Stabilized neighborhood strip center; Rare opportunity; Awesome Richfield location at Penn and 66th
