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    Established Bar and Event Space Title is generated by Realmo AI

    7540 5th Street, New Auburn, MN 55366

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    For Sale
    $270,000

    Commercial - New Auburn, MN

    Lot size:
    1.30 Acres
    Added:
    May 6, 2026
    Days on Market:
    11
    Last Refresh:
    May 16 at 3:06 am

    Property Features for 7540 5th Street

    General Information

    Property type
    Commercial Sale
    Property subtype
    Other
    Zoning
    Business/Commercial
    Parking features
    Parking Lot
    Exterior features
    Brick/Stone
    Standard status
    Active
    APN
    360094000
    Lot size
    1.30 Acres

    Taxes and HOA fees

    Tax Year
    2025
    Tax Annual Amount
    2622

    Utilities

    Heating system
    Forced Air

    Building Details

    Year built
    1945
    Architectural style
    Other

    We can help!

    Listing Contact
    Bonnie H. Nguyen
    Bonnie H. Nguyen

    Listing agent Bonnie H. Nguyen

    Listing office eXp Realty 4525 White Bear Parkway, White Bear Lake, MN

    Listing date May 6, 2026

    MLS# 7068654 Listing URL

    Copyright © 2026 Northstar MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.

    HighLights

    • Well‑established, family‑run bar with strong community ties and a profitable, streamlined menu.
    • Three bar areas, including a 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 a portable outdoor bar.
    • Spacious parking lot and storage shed included.
    • Security system included with the option for a new service contract.

    Overview

    The Backwoods Bar is a two-story commercial property located in New Auburn, MN. This family-run establishment features three bar areas, including a ballroom suitable for events, bingo, and raffles. There is also a bar on the lower level. The upper level contains a full-service restaurant space that is currently not in operation, but includes a full commercial kitchen equipped with a 14-foot hood and a dedicated dining area. The bar is currently operating with a streamlined menu. The property has the potential to expand the upper level into a full-service restaurant. Additional features include a spacious parking lot, a storage shed, and a grandfathered fenced patio with a small portable outdoor bar. The property is situated on a 1.299-acre lot. Included in the sale are TVs and some personal property located in the building, as well as the security system equipment. The buyer will assume the lease for the Clover POS system, which has two years remaining. Leased entertainment equipment includes a pool table, TouchTunes, and an arcade game; a new lease will need to be discussed with the service provider.
    Property Profile Insight Report 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
    -94.230637
    Latitude
    44.674206

    FAQs

    What type of property is this?
    Bar & Pub - Well-known bar with event space and restaurant potential.
    Where is this bar & pub located?
    The property is located at 7540 5th Street 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 a profitable, streamlined menu.; Three bar areas, including a 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) 532-7445
    We can help!
    Listing Contact
    Bonnie H. Nguyen
    Bonnie H. Nguyen
    Learn More
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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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