Garage Condo Flex
For Sale
$333,900
7041 Kagan Avenue 11i, Otsego, MN 55301
Built units offer customizable work, storage, and business space with immediate occupancy.
Property Size1,200 SF
Price / SF$278.25
Days on Market16
Property Features for 7041 Kagan Avenue 11i
General Information
Standard status
Active
Size
1,200 SF
Site & Location
Highway Access
Yes
Road Access
Yes
Warehouse & Industrial
Clear Height
18 ft
Drive-In Doors
1
Amenities
gated community
clubhouse
Building Details
Year Built
2025
Listing Agency:
eXp Realty
(763) 227-6009
Listed By:
Kurt E Sutherland
Source:
Searchhousesnow
Added: Aug 17
Changed: Aug 28
Last Checked: Aug 31 at 6:40PM
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 eXp Realty
Investment Insights
Based on property information with market context.
This 2025 flex space property offers garage condominium units designed for owner customization. Each approximately 1,200-square-foot unit includes 18-foot sidewalls, a 14-foot overhead door, floor drain, interior water spigot, and a rough-in bath. The layout also allows room for a future loft or mezzanine. A maintenance-free exterior, private entrance, paved parking, additional parking availability, and generous vehicle turnaround space support a range of work and storage needs.
The gated condominium community is positioned just north of I-94 and County Road 19/Labeaux Ave in Otsego. There are 66 association-maintained units available, with immediate occupancy offered. Association services include garbage collection, snow removal, lawn care, and use of a clubhouse for family or business gatherings.
The gated condominium community is positioned just north of I-94 and County Road 19/Labeaux Ave in Otsego. There are 66 association-maintained units available, with immediate occupancy offered. Association services include garbage collection, snow removal, lawn care, and use of a clubhouse for family or business gatherings.
Key Highlights
- Approximately 1,200 SF per unit with 18 ft sidewalls
- 14 ft overhead door, floor drain, interior water spigot, and rough‑in bath
- 66 association‑maintained units available
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
$15,830
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
4.74%
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%
$316,600
$316.6K
Cap Rate 7%
$226,143
$226.1K
Cap Rate 9%
$175,889
$175.9K
Market Conditions
NOI Build-Up for 1,200 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
$19.4K $16.20/SF
− Vacancy
−$816 −$0.68/SF
EGI
$18.6K $15.52/SF
− OpEx
−$2.8K −$2.33/SF
NOI
$15.8K $13.19/SF
Area
Hennepin County, MN
Vacancy
4.20%
Lease Rate
$16.20 /SF/Yr
Expense Ratio
15.00%
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%
$316,600
Cap Rate 7%
$226,143
Cap Rate 9%
$175,889
Alternative Uses
Best Use
Warehouse
$226.1K
$197.9K – $263.8K
NOI $15,830 @ 7.0% cap · market cap 4.74%
Second Best
Industrial
$186.2K
$163.0K – $217.3K
NOI $13,036 @ 7.0% cap · market cap 3.90%
Theoretical Best
Office A
$286.3K
$250.5K – $334.0K
NOI $20,041 @ 7.0% cap · market cap 6.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
18 ft
Clear height
1
Drive-in doors
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
56
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 55301, MN
12,791
Population
4,720
Households
2.7
Avg Household Size
33
Median Age
44%
College-Educated
98%
High-School Grad
8.2 sq mi
ZIP Area
1,560
Density / Sq Mi
$131,157
Median Household Income
$65,890
Median Earnings
$1,458
Median Rent
$324,000
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Built units offer customizable work, storage, and business space with immediate occupancy.
Where is this flex space located?
The property is located at 7041 Kagan Avenue 11i Otsego, MN.
What is the asking price?
The asking price for this property is $333,900.
What are key features of this property?
This property features: Approximately 1,200 SF per unit with 18 ft sidewalls; 14 ft overhead door, floor drain, interior water spigot, and rough‑in bath; 66 association‑maintained units available
