Infill Development
For Sale
Contact for pricing
917 2nd St SW, Rochester, MN 55902
Infill site in downtown Rochester near Mayo Clinic campuses and within the DMC–St. Mary’s District.
Property Size6,460 SF
Price / SF$201.24
Days on Market137
Property Features for 917 2nd St SW
General Information
Standard status
Active
Size
6,460 SF
Class
B
Property subtype
Multifamily
Zoning
MXT-COR
Building Details
Year Built
1916
Buildings
2
Units
8
Listing Agency:
Hamilton Real Estate Group
Listed By:
Ari Kolas · License #MN MN
(507) 281-1002
Source:
Crexi
Added: Apr 22
Changed: Aug 13
Last Checked: Sep 1 at 12:14PM
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 Hamilton Real Estate Group
Investment Insights
Based on property information with market context.
This infill development site is positioned in the heart of Rochester and is anchored by the Mayo Clinic. Public remarks note Mayo Clinic has 44,000+ employees and that a $5B expansion is underway, supporting a range of development concepts including multifamily, senior housing, hospitality, or mixed-use.
The site is described as within the DMC – St. Mary’s District (a public-private growth initiative) and within walking distance to Mayo Clinic Hospital, Saint Mary’s Campus, and Mayo Clinic Downtown Campus. It is also located along the Link Bus Rapid Transit (BRT) line currently under construction, with direct access to all Mayo campuses.
Address: 917 2nd St SW, Rochester, MN 55902.
The site is described as within the DMC – St. Mary’s District (a public-private growth initiative) and within walking distance to Mayo Clinic Hospital, Saint Mary’s Campus, and Mayo Clinic Downtown Campus. It is also located along the Link Bus Rapid Transit (BRT) line currently under construction, with direct access to all Mayo campuses.
Address: 917 2nd St SW, Rochester, MN 55902.
Key Highlights
- Infill development site in downtown Rochester near Mayo Clinic campuses
- Walking distance to Mayo Clinic Hospital, Saint Mary’s Campus, and Mayo Clinic Downtown Campus
- Located within the DMC–St. Mary’s District (public‑private growth initiative)
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
$61,076
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
4.70%
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%
$1,221,520
$1.2M
Cap Rate 7%
$872,514
$872.5K
Cap Rate 9%
$678,622
$678.6K
Market Conditions
NOI Build-Up for 6,460 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
$116.3K $18.00/SF
− Vacancy
−$5.2K −$0.81/SF
EGI
$111.0K $17.19/SF
− OpEx
−$50.0K −$7.74/SF
NOI
$61.1K $9.45/SF
Area
Rochester, MN
Vacancy
4.50%
Lease Rate
$18.00 /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%
$1,221,520
Cap Rate 7%
$872,514
Cap Rate 9%
$678,622
Alternative Uses
Best Use
Apartment 5plus
$872.5K
$763.5K – $1.02M
NOI $61,076 @ 7.0% cap · market cap 4.70%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.49M
$2.18M – $2.90M
NOI $174,166 @ 7.0% cap · market cap 13.40%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,299
Businesses Nearby
Explore this area
Business Placement
Demographics for 55902, MN
25,878
Population
11,954
Households
2.2
Avg Household Size
40
Median Age
66%
College-Educated
98%
High-School Grad
41.1 sq mi
ZIP Area
630
Density / Sq Mi
$111,879
Median Household Income
$68,869
Median Earnings
$1,580
Median Rent
$430,100
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?
Multifamily property - Infill site in downtown Rochester near Mayo Clinic campuses and within the DMC–St. Mary’s District.
Where is this multifamily property located?
The property is located at 917 2nd St SW Rochester, MN.
What is the asking price?
The asking price for this property is $1,300,000.
What are key features of this property?
This property features: Infill development site in downtown Rochester near Mayo Clinic campuses; Walking distance to Mayo Clinic Hospital, Saint Mary’s Campus, and Mayo Clinic Downtown Campus; Located within the DMC–St. Mary’s District (public‑private growth initiative)
