Conventional Restaurant with Cocktail
For Sale
Contact for pricing
709 Main Street Northwest, Elk River, MN 55330
Downtown property includes a commercial kitchen, walk-in cooler, dining seating, and lower-level support space.
Property Size2,760 SF
Price / SF$335.14
Days on Market89
Property Features for 709 Main Street Northwest
General Information
Standard status
Active
Size
2,760 SF
Class
C
Property subtype
Retail
Zoning
DD
Occupancy
100%
Lease Type
NNN
Investment Type
Owner/User
Additional Details
Furnished
Yes
Business Included
Yes
Road Access
Yes
Equipment Included
Yes
Building Details
Year Built
1929
Units
1
Listing Agency:
Northstar Real Estate Associates
Listed By:
Eli Renn · License #40913358
Source:
Crexi
Added: Jun 3
Changed: Aug 30
Last Checked: Aug 30 at 1:25AM
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 Northstar Real Estate Associates
Investment Insights
Based on property information with market context.
Located at 709 Main Street Northwest in Downtown Elk River, this 2,760 SF conventional restaurant was built in 1929 and includes a cocktail bar component. The interior contains a full commercial kitchen, walk-in cooler, bar infrastructure, dining room seating, booths, furniture, fixtures, and equipment. Additional lower-level space provides storage and operational support. The property carries DD zoning and is positioned on Main Street with nearby public parking. Its existing restaurant configuration supports continued hospitality use, subject to applicable approvals and operating requirements.
Key Highlights
- 2,760 SF conventional restaurant and cocktail bar property
- Full commercial kitchen with walk‑in cooler
- Bar infrastructure, dining room seating, booths, and FF&E included
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
$40,862
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
4.42%
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%
$817,240
$817.2K
Cap Rate 7%
$583,743
$583.7K
Cap Rate 9%
$454,022
$454.0K
Market Conditions
NOI Build-Up for 2,760 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
$58.0K $21.00/SF
− Vacancy
−$3.5K −$1.26/SF
EGI
$54.5K $19.74/SF
− OpEx
−$13.6K −$4.94/SF
NOI
$40.9K $14.81/SF
Area
Sherburne County, MN
Vacancy
6.00%
Lease Rate
$21.00 /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%
$817,240
Cap Rate 7%
$583,743
Cap Rate 9%
$454,022
Alternative Uses
Best Use
Specialty Retail
$583.7K
$510.8K – $681.0K
NOI $40,862 @ 7.0% cap · market cap 4.42%
Second Best
Industrial
$428.3K
$374.8K – $499.7K
NOI $29,984 @ 7.0% cap · market cap 3.24%
Theoretical Best
Office A
$658.5K
$576.2K – $768.2K
NOI $46,094 @ 7.0% cap · market cap 4.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
756
Businesses Nearby
6k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 80%
Shops & Services 20%
Caribou Coffee
Dining
4,735 visits/mo
0.1 miles
Laundry Land
Shops & Services
942 visits/mo
0.2 miles
Grand Rental Station
Shops & Services
274 visits/mo
0.1 miles
Demographics for 55330, MN
43,626
Population
16,796
Households
2.6
Avg Household Size
37
Median Age
33%
College-Educated
94%
High-School Grad
106.6 sq mi
ZIP Area
409
Density / Sq Mi
$111,481
Median Household Income
$59,332
Median Earnings
$1,356
Median Rent
$355,200
Median Home Value
Market
Vacancy Rate% for Retail 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?
Conventional restaurant - Downtown property includes a commercial kitchen, walk-in cooler, dining seating, and lower-level support space.
Where is this conventional restaurant located?
The property is located at 709 Main Street Northwest Elk River, MN.
What is the asking price?
The asking price for this property is $925,000.
What are key features of this property?
This property features: 2,760 SF conventional restaurant and cocktail bar property; Full commercial kitchen with walk‑in cooler; Bar infrastructure, dining room seating, booths, and FF&E included
