Manufacturing Property with Office
New
For Sale
$825,000
8301 Pillsbury Ave S, Bloomington, MN 55420
Established cabinet-shop layout with finished office space, sprinkler protection, and highway connections near I-35W and I-494.
Property Size5,400 SF
Price / SF$152.78
Days on Market2
Property Features for 8301 Pillsbury Ave S
General Information
Standard status
Active
Size
5,400 SF
Additional Details
Highway Access
Yes
Sprinkler System
Yes
Building Details
Year Built
1957
Listing Agency:
Fidler Commercial
Listed By:
Michael E Fidler
Source:
Thehomeadvantagegroup
Added: Sep 7
Last Checked: Sep 7 at 10:12AM
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 Fidler Commercial
Investment Insights
Based on property information with market context.
This manufacturing property, built in 1957, features an established cabinet-shop configuration with a finished office mezzanine. The building also includes a sprinkler system and a newer roof. Existing cabinet-shop machinery and related equipment may be negotiated separately from the real estate.
Located in Bloomington, the property is near I-35W and I-494, providing connections throughout the Twin Cities metropolitan area. The configuration is suited to millwork, contracting, specialty manufacturing, studio, and other light-industrial uses identified for the property.
Located in Bloomington, the property is near I-35W and I-494, providing connections throughout the Twin Cities metropolitan area. The configuration is suited to millwork, contracting, specialty manufacturing, studio, and other light-industrial uses identified for the property.
Key Highlights
- Established cabinet‑shop configuration
- Finished office mezzanine
- Sprinkler system in place
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
$58,664
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
7.11%
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%
$1,173,280
$1.2M
Cap Rate 7%
$838,057
$838.1K
Cap Rate 9%
$651,822
$651.8K
Market Conditions
NOI Build-Up for 5,400 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
$87.5K $16.20/SF
− Vacancy
−$3.7K −$0.68/SF
EGI
$83.8K $15.52/SF
− OpEx
−$25.1K −$4.66/SF
NOI
$58.7K $10.86/SF
Area
Hennepin 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%
$1,173,280
Cap Rate 7%
$838,057
Cap Rate 9%
$651,822
Alternative Uses
Best Use
Industrial
$838.1K
$733.3K – $977.7K
NOI $58,664 @ 7.0% cap · market cap 7.11%
Second Best
Flex RnD
$635.4K
$556.0K – $741.3K
NOI $44,479 @ 7.0% cap · market cap 5.39%
Theoretical Best
Office A
$1.29M
$1.13M – $1.50M
NOI $90,183 @ 7.0% cap · market cap 10.93%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Sprinkler system
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
724
Businesses Nearby
Explore this area
Business Placement
Demographics for 55420, MN
23,128
Population
9,638
Households
2.4
Avg Household Size
39
Median Age
31%
College-Educated
86%
High-School Grad
6.7 sq mi
ZIP Area
3,452
Density / Sq Mi
$77,539
Median Household Income
$42,441
Median Earnings
$1,277
Median Rent
$306,600
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Manufacturing property - Established cabinet-shop layout with finished office space, sprinkler protection, and highway connections near I-35W and I-494.
Where is this manufacturing property located?
The property is located at 8301 Pillsbury Ave S Bloomington, MN.
What is the asking price?
The asking price for this property is $825,000.
What are key features of this property?
This property features: Established cabinet‑shop configuration; Finished office mezzanine; Sprinkler system in place
