Two-Tenant Office
For Sale
Contact for pricing
7656 Design Rd, Baxter, MN 56425
Two-tenant office building within a professional court, currently 100% occupied by Bolten & Menk and Hearing Life.
Property Size5,806 SF
Price / SF$154.84
Days on Market240
Property Features for 7656 Design Rd
General Information
Standard status
Active
Size
5,806 SF
Property subtype
OFFICE
Occupancy
100%
Building Details
Tenancy
Multi
Listing Agency:
Close-Converse Commercial Properties
(218) 828-3334
Listed By:
Christopher C. Close
(218) 831-7510
Source:
Moodyscre
Added: Jan 8
Changed: Aug 25
Last Checked: Aug 14 at 7:39AM
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 Close-Converse Commercial Properties
Investment Insights
Based on property information with market context.
This two-tenant office building is part of Design Drive Professional Court, a four-building professional office park. The property is currently 100% occupied by Bolten & Menk and Hearing Life. The buildings are described as well maintained within a manicured office park setting.
Located at 7656 Design Rd in Baxter, Minnesota, the professional court provides easy access and is situated between Hwy 371 and Golf Course Drive.
For investors or owner-users seeking an income-producing office asset, this offering provides an occupied, two-tenant configuration inside a multi-building office park.
Located at 7656 Design Rd in Baxter, Minnesota, the professional court provides easy access and is situated between Hwy 371 and Golf Course Drive.
For investors or owner-users seeking an income-producing office asset, this offering provides an occupied, two-tenant configuration inside a multi-building office park.
Key Highlights
- Two‑tenant office building within the Design Drive Professional Court
- Currently 100% occupied by Bolten & Menk and Hearing Life
- Part of a professional office park comprised of four buildings
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
$65,840
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
7.32%
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%
$1,316,800
$1.3M
Cap Rate 7%
$940,571
$940.6K
Cap Rate 9%
$731,556
$731.6K
Market Conditions
NOI Build-Up for 5,806 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
$104.5K $18.00/SF
− Vacancy
−$16.7K −$2.88/SF
EGI
$87.8K $15.12/SF
− OpEx
−$21.9K −$3.78/SF
NOI
$65.8K $11.34/SF
Area
Crow Wing County, MN
Vacancy
16.00%
Lease Rate
$18.00 /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%
$1,316,800
Cap Rate 7%
$940,571
Cap Rate 9%
$731,556
Alternative Uses
Best Use
Office B
$940.6K
$823.0K – $1.10M
NOI $65,840 @ 7.0% cap · market cap 7.32%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.23M
$1.08M – $1.44M
NOI $86,282 @ 7.0% cap · market cap 9.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
427
Businesses Nearby
Explore this area
Business Placement
Demographics for 56425, MN
8,584
Population
3,898
Households
2.2
Avg Household Size
41
Median Age
38%
College-Educated
97%
High-School Grad
18.3 sq mi
ZIP Area
469
Density / Sq Mi
$71,294
Median Household Income
$45,777
Median Earnings
$1,115
Median Rent
$299,900
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Two-tenant office building within a professional court, currently 100% occupied by Bolten & Menk and Hearing Life.
Where is this office units located?
The property is located at 7656 Design Rd Baxter, MN.
What is the asking price?
The asking price for this property is $899,000.
What are key features of this property?
This property features: Two‑tenant office building within the Design Drive Professional Court; Currently 100% occupied by Bolten & Menk and Hearing Life; Part of a professional office park comprised of four buildings
