Office Building with Highway
For Sale
Contact for pricing
8665 Hudson Blvd N, Lake Elmo, MN 55042
Office property offering direct visibility from I-94 in Lake Elmo.
Property Size25,558 SF
Price / SF$246.46
Days on Market146
Property Features for 8665 Hudson Blvd N
General Information
Standard status
Active
Size
25,558 SF
Property subtype
OFFICE
Additional Details
Highway Access
Yes
Listing Agency:
Lynskey Real Estate Company
(651) 210-0075
Listed By:
Mick Lynskey
(651) 210-0075
Source:
Moodyscre
Added: Apr 7
Changed: Aug 30
Last Checked: Aug 30 at 5:43PM
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 Lynskey Real Estate Company
Investment Insights
Based on property information with market context.
Office building comprising 25,558 square feet at 8665 Hudson Blvd N in Lake Elmo, Minnesota. The property is positioned for visibility from I-94, providing a recognizable presence along the interstate corridor.
Key Highlights
- 25,558‑square‑foot office building
- Visible from I‑94
- Located at 8665 Hudson Blvd N, Lake Elmo, MN 55042
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
$354,528
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
5.63%
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%
$7,090,560
$7.1M
Cap Rate 7%
$5,064,686
$5.1M
Cap Rate 9%
$3,939,200
$3.9M
Market Conditions
NOI Build-Up for 25,558 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
$637.9K $24.96/SF
− Vacancy
−$165.2K −$6.46/SF
EGI
$472.7K $18.50/SF
− OpEx
−$118.2K −$4.62/SF
NOI
$354.5K $13.87/SF
Area
Washington County, MN
Vacancy
25.90%
Lease Rate
$24.96 /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%
$7,090,560
Cap Rate 7%
$5,064,686
Cap Rate 9%
$3,939,200
Alternative Uses
Best Use
Office B
$5.06M
$4.43M – $5.91M
NOI $354,528 @ 7.0% cap · market cap 5.63%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$7.10M
$6.21M – $8.28M
NOI $496,946 @ 7.0% cap · market cap 7.89%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,089
Businesses Nearby
Explore this area
Business Placement
Demographics for 55042, MN
12,044
Population
4,987
Households
2.4
Avg Household Size
42
Median Age
62%
College-Educated
99%
High-School Grad
24.9 sq mi
ZIP Area
484
Density / Sq Mi
$154,779
Median Household Income
$81,406
Median Earnings
$2,204
Median Rent
$594,000
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 building - Office property offering direct visibility from I-94 in Lake Elmo.
Where is this office building located?
The property is located at 8665 Hudson Blvd N Lake Elmo, MN.
What is the asking price?
The asking price for this property is $6,299,000.
What are key features of this property?
This property features: 25,558‑square‑foot office building; Visible from I‑94; Located at 8665 Hudson Blvd N, Lake Elmo, MN 55042
