Building Details

Year Built 2011

Buildings 1

Construction pole building

Listing Agency: RE/MAX Advantage Plus m***@homesnp.net Show Phone

Listed By: Marlene A Mushitz Show Phone

Source: Exprealty

Added: Aug 4 Changed: Aug 13 Last Checked: Aug 19 at 2:34PM

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Investment Insights

Based on property information with market context.

Built in 2011, this flex building provides a practical combination of enclosed storage, vehicle-service space, and finished loft area. The 75-by-40-foot structure includes in-floor heat, sprayed foam insulation, and a 14-foot garage door for accommodating larger vehicles or equipment.

An upper loft adds a 3/4 bath and workout area, while a ground-level double-door entrance provides separate access. The building can support motorhome storage, collector-car storage, vehicle maintenance, or entertaining in the loft. The property is located in Elko New Market, Minnesota, at 8920 E 250th Street.

Key Highlights

• 75' x 40' flex building built in 2011
• In‑floor heat and sprayed foam insulation
• 14' garage door for vehicle and equipment access

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

$39,575

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

5.46%

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%

$791,500 $791.5K

Cap Rate 7%

$565,357 $565.4K

Cap Rate 9%

$439,722 $439.7K

Market Conditions

NOI Build-Up for 3,000 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

$48.6K $16.20/SF

− Vacancy

−$2.0K −$0.68/SF

EGI

$46.6K $15.52/SF

− OpEx

−$7.0K −$2.33/SF

NOI

$39.6K $13.19/SF

Area

Scott County, MN

Vacancy

4.20%

Lease Rate

$16.20 /SF/Yr

Expense Ratio

15.00%

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%

$791,500

Cap Rate 7%

$565,357

Cap Rate 9%

$439,722

Alternative Uses

Best Use

Warehouse

$565.4K

$494.7K – $659.6K (±1% cap)

NOI $39,575 @ 7.0% cap · market cap 5.46%

Second Best

Flex RnD

$476.4K

$416.8K – $555.8K (±1% cap)

NOI $33,345 @ 7.0% cap · market cap 4.60%

Theoretical Best

Office A

$715.7K

$626.3K – $835.0K (±1% cap)

NOI $50,102 @ 7.0% cap · market cap 6.91%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Flex space

Suggested Use

Top Pick Restaurant

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

Lease Details

1

Drive-in doors

Location Intelligence

Trade Area within ½ mile

1

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 55020, MN

4,053

Population

1,501

Households

2.7

Avg Household Size

38

Median Age

38%

College-Educated

97%

High-School Grad

23.8 sq mi

ZIP Area

170

Density / Sq Mi

$127,159

Median Household Income

$65,728

Median Earnings

$452,700

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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What type of property is this? Where is this flex space located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Flex space - Insulated flex space supports storage, vehicle maintenance, and a finished upper-level area.

Where is this flex space located?

The property is located at 8920 E 250th Street Elko New Market, MN.

What is the asking price?

The asking price for this property is $725,000.

What are key features of this property?

This property features: 75' x 40' flex building built in 2011; In‑floor heat and sprayed foam insulation; 14' garage door for vehicle and equipment access