Starbucks Coffee
New
For Sale
$2,239,631
895 Madison Avenue, Mankato, MN 56001
Fully occupied under a new 10-year corporate lease with five-year rent increases and four renewal options.
Property Size11,932 SF
Price / SF$187.70
Days on Market2
Property Features for 895 Madison Avenue
General Information
Standard status
Active
Size
11,932 SF
Property subtype
Retail
Occupancy
100%
Additional Details
Corner Location
Yes
Building Details
Tenancy
Single
Listed By:
Sean Doyle
(612) 336-4325
Source:
Cbre
Added: Sep 26
Last Checked: Sep 26 at 2:50PM
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 Sean Doyle
Investment Insights
Based on property information with market context.
This newly constructed Starbucks property at 895 Madison Avenue in Mankato is leased to Starbucks Corporation. The lease has a 10-year term, rent increases every five years, and four additional five-year options.
The property sits at a signal-controlled intersection on Madison Avenue, next to the Mayo Clinic hospital. The offering is for the fee simple interest.
The property sits at a signal-controlled intersection on Madison Avenue, next to the Mayo Clinic hospital. The offering is for the fee simple interest.
Key Highlights
- Leased to Starbucks Corporation under a new 10‑year lease
- Four 5‑year option periods; rent increases every five years
- Located at a signalized Madison Avenue corner
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
$156,894
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
7.01%
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%
$3,137,880
$3.1M
Cap Rate 7%
$2,241,343
$2.2M
Cap Rate 9%
$1,743,267
$1.7M
Market Conditions
NOI Build-Up for 11,932 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
$214.8K $18.00/SF
− Vacancy
−$5.6K −$0.47/SF
EGI
$209.2K $17.53/SF
− OpEx
−$52.3K −$4.38/SF
NOI
$156.9K $13.15/SF
Area
Blue Earth County, MN
Vacancy
2.60%
Lease Rate
$18.00 /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%
$3,137,880
Cap Rate 7%
$2,241,343
Cap Rate 9%
$1,743,267
Alternative Uses
Best Use
Specialty Retail
$2.24M
$1.96M – $2.61M
NOI $156,894 @ 7.0% cap · market cap 7.01%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.36M
$2.06M – $2.75M
NOI $165,080 @ 7.0% cap · market cap 7.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
100%
Occupancy
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,475
Businesses Nearby
85k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 91%
Shops & Services 8%
Apparel 1%
McDonald's
Dining
38,730 visits/mo
0.5 miles
Taco John's
Dining
11,618 visits/mo
0.1 miles
KFC
Dining
8,639 visits/mo
0.2 miles
1000 Degrees Neapolitan Pizza
Dining
6,897 visits/mo
0.4 miles
Scooter's Coffee
Dining
6,433 visits/mo
0.1 miles
Demographics for 56001, MN
50,729
Population
21,583
Households
2.4
Avg Household Size
30
Median Age
37%
College-Educated
94%
High-School Grad
114.5 sq mi
ZIP Area
443
Density / Sq Mi
$67,224
Median Household Income
$29,122
Median Earnings
$1,088
Median Rent
$263,100
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Midwest region
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Similar Off Market Nearby
- Scooter's Coffee — 1060 Madison Ave, Mankato, MN 56001
- Mad Ave Nutrition — 1310 Madison Ave, Mankato, MN 56001
Frequently Asked Questions
What type of property is this?
Coffee shop - Fully occupied under a new 10-year corporate lease with five-year rent increases and four renewal options.
Where is this coffee shop located?
The property is located at 895 Madison Avenue Mankato, MN.
What is the asking price?
The asking price for this property is $2,239,631.
What are key features of this property?
This property features: Leased to Starbucks Corporation under a new 10‑year lease; Four 5‑year option periods; rent increases every five years; Located at a signalized Madison Avenue corner
