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    Established Bar and Restaurant Opportunity Title is generated by Realmo AI

    7540 5th St, New Auburn, MN 55366

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    Well-known, family-run bar with restaurant potential in New Auburn.

    Type:RETAIL
    Property size:
    4,957 SF
    Price / SF:
    $54/SF
    Added:
    May 1, 2026
    Days on Market:
    32
    Last Refresh:
    May 8 at 3:30 am

    Property Features for 7540 5th St

    General Information

    Standard status
    Active
    Size
    4,957 SF
    Property subtype
    RETAIL

    We can help!

    Listing Contact
    Scott Naasz
    Scott Naasz

    Listing agent Scott Naasz License #40709913

    Listing office eXp Commercial

    Listing date May 1, 2026

    Source Moodyscre

    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 Commercial

    HighLights

    • Well‑established, family‑run bar with strong community ties and multiple revenue streams.
    • Spacious ballroom suitable for events, bingo, and raffles.
    • Opportunity to expand into a full‑service restaurant on the upper level with existing commercial kitchen and 14‑foot hood.
    • Grandfathered fenced patio with portable outdoor bar.
    • Recent upgrades including new roofs (2023 & 2025), new furnace (2025), and new A/C unit (2025).
    • Included security system (alarm + cameras) and additional bar equipment.

    Overview

    This two-story property, known as Backwoods Bar, is a family-run establishment with community ties, located in New Auburn, MN. The property features three bar areas, including a ballroom suitable for events, bingo, and raffles, a lower-level bar, and an upper-level full-service restaurant that is currently not in operation. The bar is currently operating with a streamlined menu. The upper level features a full commercial kitchen equipped with a 14-foot hood and a dedicated dining area, presenting the potential to expand into a full-service restaurant. The property includes a spacious parking lot, a storage shed, and a fenced patio with a small portable outdoor bar. The sale includes TVs and some personal property, a security system, and additional bar equipment. The POS system has a Clover service provider with 2 years remaining on the lease, which the buyer will assume. Leased entertainment equipment includes a pool table, TouchTunes, and an arcade game, with a new lease to be discussed with the service provider. The property has a new roof on the ballroom (2025) and the main bar (2023). It also has three furnaces (newest 2025, another 2017) and three air conditioners (one new in 2025). Additional features include a water softener (2018) and an exterior sump pump. The property size is 4957 square feet.
    Location Intelligence

    Current Use by Public Records

    Backwoods Bar & Pub

    Suggested Use

    Restaurant Spa & Massage Center Hair Salon Nail Salon Storage Facility Bar & Pub Computer & Electronic Repair Tech Support Center Grocery & Convenience Store (Bike/Boat/Book/etc) Store

    Zoning and permitted uses should be independently verified with local authorities.

    Similar Places Nearby

    • Backwoods — 7540 5th St, New Auburn, MN 55366
    • Curly's — 7395 7th Ave, New Auburn, MN 55366

    Location Insight

    • Map
    • Local Demand
    City
    New Auburn
    County
    Sibley
    State
    Minnesota
    Longitude
    -94.2304295
    Latitude
    44.6741879

    FAQs

    What type of property is this?
    Bar & Pub - Well-known, family-run bar with restaurant potential in New Auburn.
    Where is this bar & pub located?
    The property is located at 7540 5th St New Auburn, MN.
    What is the asking price?
    The asking price for this property is $270,000.
    What are key features of this property?
    This property features: Well‑established, family‑run bar with strong community ties and multiple revenue streams.; Spacious ballroom suitable for events, bingo, and raffles.; Opportunity to expand into a full‑service restaurant on the upper level with existing commercial kitchen and **14‑foot hood**.
    (612) 819-8285 Call to check price and availability
    We can help!
    Contact for Pricing
    Please call us for current price
    and status of this listing Scott Naasz
    Scott Naasz
    Real Estate License ID: 40709913
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    Realmo Value Estimations

    Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods. 

    Disclaimer

    These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.
    Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.
    By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.

    AI approach

    Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.

    Realmo CapRate Calculation

    Realmo calculates the Capitalization Rate (Cap Rate) to help estimate a property's potential return on investment. The Cap Rate is a fundamental metric in commercial real estate that measures the relationship between a property's net operating income and its market value.

    How We Calculate Cap Rate

    Cap Rate Formula:
    Cap Rate (%) = (Net Operating Income / Property Value) × 100

    Net Operating Income (NOI) Formula:
    NOI = Area × Lease Rate × (1 - Vacancy Rate) × (1 - Operating Expense Ratio)

    Components

    Net Operating Income (NOI) represents the annual income a property generates after operating expenses:

    • Area: Building square footage from property records
    • Lease Rate: Annual $/sqft based on market data for the property type and geographic location
    • Vacancy Rate: Percentage of unoccupied space based on market data for the property type and location
    • Operating Expense Ratio: Operating costs as a percentage of income, varies by property type

    Property Value is derived from:

    • Recent sale price (if available)
    • Statistical models using comparable sales
    • AI-powered valuation estimates

    Example Calculation

    For a 100,000 sqft Office Building:

    • Lease Rate: $25.00/sqft/year (market data for Office in this area)
    • Vacancy Rate: 8% (market data for Office in this area)
    • Operating Expense Ratio: 35% (typical for Office properties)
    • Property Value: $15,000,000

    Step 1: Calculate NOI

    NOI = 100,000 × $25.00 × (1 - 0.08) × (1 - 0.35)
    NOI = 100,000 × $25.00 × 0.92 × 0.65
    NOI = $1,495,000/year

    Step 2: Calculate Cap Rate

    Cap Rate = ($1,495,000 / $15,000,000) × 100
    Cap Rate = 9.97%

    Property Type Considerations

    Net Operating Income calculations vary by property type due to different operating expense ratios:

    • Office: Higher expenses (30-40%) for HVAC, utilities, maintenance
    • Retail: Moderate expenses (25-35%) for common area maintenance
    • Industrial/Warehouse: Lower expenses (15-25%) for minimal tenant services
    • Multifamily: Moderate expenses (35-45%) including property management
    • Self-Storage: Lower expenses (25-35%) due to minimal maintenance

    Market lease rates and vacancy rates are specific to each property type and geographic location, reflecting local market conditions.

    Disclaimer

    These calculations are estimates for informational purposes only and should not be used as a substitute for professional financial analysis or appraisal.

    • Cap Rate calculations depend on market data that may change over time
    • Actual operating expenses, lease rates, and vacancy rates may differ from market averages
    • Individual property conditions, lease terms, and tenant quality significantly impact actual NOI
    • Property value estimates are approximations and not official appraisals
    • Cap rates vary widely by market, property condition, and investment risk profile

    Professional Guidance Recommended: Before making any investment or financial decisions, consult with licensed appraisers, commercial real estate brokers, and financial advisors who can evaluate your specific property and circumstances.
    By using this feature, you acknowledge that Realmo is not responsible for investment decisions or actions taken based on these estimates.

    Cap approach

    Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.

    Comparable approach

    Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.

    Relative

    Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.

    Geo

    Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.

    Stat Estimate

    This method estimates value based on actual market adjusted recent (~5 years) sales of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all similar sales ($/sqft) are above this value
    • Range-to: 75% of all similar sales ($/sqft) are below this value
    AI Estimate

    This method estimates value based on AI market estimation of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all estimations ($/sqft) are above this value
    • Range-to: 75% of all estimations ($/sqft) are below this value
    Alternative use

    Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.

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