NNN Retail Property with Corporate
For Sale
Contact for pricing
819 Frontage Road, Byron, MN 55920
O'Reilly Auto Parts occupies the building under a long-term net lease.
Property Size7,225 SF
Price / SF$231.05
Days on Market119
Property Features for 819 Frontage Road
General Information
Standard status
Active
Size
7,225 SF
Property subtype
Retail
Lease Type
NNN
Net Operating Income
$95,987
Building Details
Year Built
2023
Units
1
Listing Agency:
Northmarq Capital, LLC
Listed By:
Anthony Cohen · License #CA 02097395
Source:
Crexi
Added: May 4
Changed: Aug 29
Last Checked: Aug 29 at 1:44PM
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 Northmarq Capital, LLC
Investment Insights
Based on property information with market context.
This NNN retail property is a 7,225-square-foot, build-to-suit facility completed in 2023 for O'Reilly Auto Parts. The existing tenancy is supported by an investment-grade corporate credit rating of BBB from S&P, with almost 12 years of firm lease term remaining.
The property is located at 819 Frontage Road in Byron, Minnesota, with direct frontage along US Highway 14. Byron is part of the Rochester MSA and is identified in the source information as a growing bedroom community anchored by Mayo Clinic. Household incomes in the surrounding area exceed $124,000, and the market is characterized by significant vehicle dependency.
The property is located at 819 Frontage Road in Byron, Minnesota, with direct frontage along US Highway 14. Byron is part of the Rochester MSA and is identified in the source information as a growing bedroom community anchored by Mayo Clinic. Household incomes in the surrounding area exceed $124,000, and the market is characterized by significant vehicle dependency.
Key Highlights
- 7,225‑square‑foot build‑to‑suit facility completed in 2023
- O'Reilly Auto Parts tenancy with almost 12 years of firm lease term remaining
- Investment‑grade corporate credit rating of BBB from S&P
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
$93,397
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
5.59%
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%
$1,867,940
$1.9M
Cap Rate 7%
$1,334,243
$1.3M
Cap Rate 9%
$1,037,744
$1.0M
Market Conditions
NOI Build-Up for 7,225 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
$137.0K $18.96/SF
− Vacancy
−$3.6K −$0.49/SF
EGI
$133.4K $18.47/SF
− OpEx
−$40.0K −$5.54/SF
NOI
$93.4K $12.93/SF
Area
Olmsted County, MN
Vacancy
2.60%
Lease Rate
$18.96 /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%
$1,867,940
Cap Rate 7%
$1,334,243
Cap Rate 9%
$1,037,744
Alternative Uses
Best Use
Retail
$1.33M
$1.17M – $1.56M
NOI $93,397 @ 7.0% cap · market cap 5.59%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.91M
$1.67M – $2.22M
NOI $133,413 @ 7.0% cap · market cap 7.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
208
Businesses Nearby
78k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 57%
Dining 29%
Groceries 14%
Kwik Trip
Shops & Services
26,409 visits/mo
0.2 miles
McDonald's
Dining
22,468 visits/mo
0.2 miles
Fareway
Groceries
11,035 visits/mo
0.5 miles
Dollar General
Shops & Services
6,480 visits/mo
0.1 miles
Dollar Tree
Shops & Services
6,011 visits/mo
0.4 miles
Demographics for 55920, MN
8,512
Population
3,294
Households
2.6
Avg Household Size
37
Median Age
48%
College-Educated
99%
High-School Grad
68.7 sq mi
ZIP Area
124
Density / Sq Mi
$126,102
Median Household Income
$64,366
Median Earnings
$1,085
Median Rent
$356,900
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?
NNN property - O'Reilly Auto Parts occupies the building under a long-term net lease.
Where is this nnn property located?
The property is located at 819 Frontage Road Byron, MN.
What is the asking price?
The asking price for this property is $1,669,331.
What are key features of this property?
This property features: 7,225‑square‑foot build‑to‑suit facility completed in 2023; O'Reilly Auto Parts tenancy with almost 12 years of firm lease term remaining; Investment‑grade corporate credit rating of BBB from S&P
