Building Details

Tenancy Multi

Listing Agency: KW Commercial Midwest j***@kwcommercial.com Show Phone

Listed By: James Halbur · License #40144147

Source: Crexi

Added: Sep 18, 2024 Changed: Aug 14 Last Checked: Aug 17 at 9:08AM

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Investment Insights

Based on property information with market context.

This storage unit measures 40 x 60 and includes heating and water. It features three overhead doors, each 14 feet high, and a ceiling of the same height. The property benefits from its own private driveway and convenient location off Highway 22. The property size is 2400 square feet.

Key Highlights

• Large 40 x 60 storage unit.
• Heated with water access.
• Three overhead doors.

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

$26,073

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

8.69%

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%

$521,460 $521.5K

Cap Rate 7%

$372,471 $372.5K

Cap Rate 9%

$289,700 $289.7K

Market Conditions

NOI Build-Up for 2,400 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

$38.9K $16.20/SF

− Vacancy

−$1.6K −$0.68/SF

EGI

$37.2K $15.52/SF

− OpEx

−$11.2K −$4.66/SF

NOI

$26.1K $10.86/SF

Area

Le Sueur County, MN

Vacancy

4.20%

Lease Rate

$16.20 /SF/Yr

Expense Ratio

30.00%

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%

$521,460

Cap Rate 7%

$372,471

Cap Rate 9%

$289,700

Alternative Uses

Best Use

Warehouse

$452.3K

$395.8K – $527.7K (±1% cap)

NOI $31,660 @ 7.0% cap · market cap 10.55%

Second Best

Industrial

$372.5K

$325.9K – $434.6K (±1% cap)

NOI $26,073 @ 7.0% cap · market cap 8.69%

Theoretical Best

Office A

$572.6K

$501.0K – $668.0K (±1% cap)

NOI $40,081 @ 7.0% cap · market cap 13.36%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Storehouse Cooperative Storage Facility

Suggested Use

Top Pick Building Supply HVAC Service Plumbing Service Auto Parts Store Real Estate Agency Pet Grooming Service

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

57

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 56050, MN

1,531

Population

630

Households

2.4

Avg Household Size

45

Median Age

31%

College-Educated

93%

High-School Grad

23.1 sq mi

ZIP Area

66

Density / Sq Mi

$85,000

Median Household Income

$44,550

Median Earnings

$649

Median Rent

$308,800

Median Home Value

Market

Vacancy Rate% for Industrial in Midwest region

4.4% 2019

4.9% 2020

3.6% 2021

3.1% 2022

4.6% 2023

5% 2024

4.9% 2025

Questions? Ask Rey

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Similar Off Market Nearby

• Affordable Storage Systems, LLC — 956 E Hill St, St Peter, MN 56082
• Storehouse Cooperative — 780 E Pearl St, Kasota, MN 56050

Frequently Asked Questions

What type of property is this?

Warehouse - 40x60 storage unit with water, heat, and private driveway.

Where is this warehouse located?

The property is located at 780 E Pearl St Kasota, MN.

What is the asking price?

The asking price for this property is $300,000.

What are key features of this property?

This property features: Large 40 x 60 storage unit.; Heated with water access.; Three overhead doors.