Mixed-Use Restaurant
New
For Sale
$1,250,000
860 University Ave W, Saint Paul, MN 55104
Operating restaurant with five residential units, commercial kitchen improvements, and light rail access along University Avenue.
Property Size5,008 SF
Price / SF$249.60
Days on Market4
Property Features for 860 University Ave W
General Information
Standard status
Active
Size
5,008 SF
Zoning
T2
Restaurant
Commercial Hood
Yes
Equipment Included
Yes
Additional Details
Business Included
Yes
Road Access
Yes
Amenities
light rail access
Building Details
Year Built
1914
Buildings
1
Listing Agency:
Coldwell Banker Realty
(651) 246-8054
Listed By:
Deanna Doyle
Source:
Brickandbanister
Added: Aug 28
Changed: Aug 31
Last Checked: Aug 31 at 6:35PM
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 Coldwell Banker Realty
Investment Insights
Based on property information with market context.
This mixed-use property at 860 University Ave W in Saint Paul combines an operating restaurant with five residential units in a 5,008 SF building. Constructed in 1914, the property has supported a family-operated restaurant business since 1986 and includes a commercial kitchen, updated hood system, and two commercial freezers. The building also features a roof replaced within the last 5 years and exterior siding improvements.
The property is zoned T2 and sits on University Avenue with light rail access at the property. Five residential units are leased, creating a multifaceted income configuration alongside the restaurant operation. The layout supports both continued restaurant use and residential occupancy within the same building.
The property is zoned T2 and sits on University Avenue with light rail access at the property. Five residential units are leased, creating a multifaceted income configuration alongside the restaurant operation. The layout supports both continued restaurant use and residential occupancy within the same building.
Key Highlights
- 5,008 SF mixed‑use building with an operating restaurant and five residential units
- Restaurant has an updated commercial kitchen and new hood system
- Two commercial freezers included
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
$67,206
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
5.38%
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%
$1,344,120
$1.3M
Cap Rate 7%
$960,086
$960.1K
Cap Rate 9%
$746,733
$746.7K
Market Conditions
NOI Build-Up for 5,008 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
$130.4K $26.04/SF
− Vacancy
−$8.2K −$1.64/SF
EGI
$122.2K $24.40/SF
− OpEx
−$55.0K −$10.98/SF
NOI
$67.2K $13.42/SF
Area
Dakota County, MN
Vacancy
6.30%
Lease Rate
$26.04 /SF/Yr
Expense Ratio
45.00%
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%
$1,344,120
Cap Rate 7%
$960,086
Cap Rate 9%
$746,733
Alternative Uses
Best Use
Apartment 5plus
$960.1K
$840.1K – $1.12M
NOI $67,206 @ 7.0% cap · market cap 5.38%
Second Best
Specialty Retail
$928.2K
$812.1K – $1.08M
NOI $64,971 @ 7.0% cap · market cap 5.20%
Theoretical Best
Healthcare Medical
$1.23M
$1.08M – $1.44M
NOI $86,268 @ 7.0% cap · market cap 6.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Paved road access
Yes
Commercial hood
Location Intelligence
Trade Area within ½ mile
862
Businesses Nearby
Explore this area
Business Placement
Demographics for 55104, MN
45,612
Population
20,358
Households
2.2
Avg Household Size
33
Median Age
52%
College-Educated
93%
High-School Grad
6.0 sq mi
ZIP Area
7,602
Density / Sq Mi
$75,038
Median Household Income
$42,770
Median Earnings
$1,159
Median Rent
$290,900
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Operating restaurant with five residential units, commercial kitchen improvements, and light rail access along University Avenue.
Where is this mixed-use property located?
The property is located at 860 University Ave W Saint Paul, MN.
What is the asking price?
The asking price for this property is $1,250,000.
What are key features of this property?
This property features: 5,008 SF mixed‑use building with an operating restaurant and five residential units; Restaurant has an updated commercial kitchen and new hood system; Two commercial freezers included
