Freestanding Building in St.
For Sale
Contact for pricing
701 Central Ave E, Saint Michael, MN 55376
Retail property with drive-thru opportunity in a high-traffic location.
Property Size8,700 SF
Price / SF$160.92
Days on Market1301
Property Features for 701 Central Ave E
General Information
Standard status
Active
Size
8,700 SF
Property subtype
Retail
Lease Type
NNN
Building Details
Year Built
1980
Buildings
1
Stories
1
Tenancy
Single
Listing Agency:
Upland Real Estate Group Inc
(612) 436-1122
Listed By:
Chad Sturm · License #MN 20070429
Source:
Crexi
Added: Jan 18, 2023
Changed: Aug 8
Last Checked: May 19 at 11:02PM
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 Upland Real Estate Group Inc
Investment Insights
Based on property information with market context.
This 8,700-square-foot freestanding building is situated in the main trade area of St. Michael, Minnesota. The location offers a drive-thru opportunity and benefits from average daily traffic counts of 19,400 vehicles on Central Ave E. It is located across Central Ave from Cub Foods, the only grocer in the city. The property is near multiple corporate headquarters, including J&B’s, Die Technology and Nanotech Precision, and New Plastics Plus, Inc. The surrounding area is experiencing significant commercial development. Area retailers include Cub Foods, CVS, Walgreens, Subway, Domino’s, and O’Reilly Auto Parts. The property is located 25 minutes from downtown Minneapolis and 35 minutes from St. Cloud. St. Michael is ranked as the #3 best city to live in Minnesota according to Life in Minnesota, and the St. Michael Public School District is ranked #16 in the state by U.S. News.
Key Highlights
- High traffic location with 19,400 vehicles per day on Central Ave E.
- Located in the main trade area of St. Michael, across from Cub Foods.
- Drive‑thru opportunity in a free‑standing building.
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
$107,153
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
7.65%
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%
$2,143,060
$2.1M
Cap Rate 7%
$1,530,757
$1.5M
Cap Rate 9%
$1,190,589
$1.2M
Market Conditions
NOI Build-Up for 8,700 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
$165.0K $18.96/SF
− Vacancy
−$11.9K −$1.37/SF
EGI
$153.1K $17.59/SF
− OpEx
−$45.9K −$5.28/SF
NOI
$107.2K $12.32/SF
Area
Wright County, MN
Vacancy
7.20%
Lease Rate
$18.96 /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%
$2,143,060
Cap Rate 7%
$1,530,757
Cap Rate 9%
$1,190,589
Alternative Uses
Best Use
Retail
$1.53M
$1.34M – $1.79M
NOI $107,153 @ 7.0% cap · market cap 7.65%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.08M
$1.82M – $2.42M
NOI $145,295 @ 7.0% cap · market cap 10.38%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
403
Businesses Nearby
101k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 54%
Groceries 31%
Shops & Services 15%
Cub Foods
Groceries
31,508 visits/mo
0.4 miles
McDonald's
Dining
27,784 visits/mo
0.1 miles
Chipotle Mexican Grill
Dining
14,647 visits/mo
0.2 miles
Dollar Tree
Shops & Services
11,075 visits/mo
0.0 miles
Dunn Bros Coffee
Dining
6,511 visits/mo
0.3 miles
Demographics for 55376, MN
17,989
Population
7,128
Households
2.5
Avg Household Size
36
Median Age
44%
College-Educated
98%
High-School Grad
29.2 sq mi
ZIP Area
616
Density / Sq Mi
$130,917
Median Household Income
$62,378
Median Earnings
$2,038
Median Rent
$364,600
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Retail property with drive-thru opportunity in a high-traffic location.
Where is this storefront property located?
The property is located at 701 Central Ave E Saint Michael, MN.
What is the asking price?
The asking price for this property is $1,400,000.
What are key features of this property?
This property features: High traffic location with 19,400 vehicles per day on Central Ave E.; Located in the main trade area of St. Michael, across from Cub Foods.; Drive‑thru opportunity in a free‑standing building.
