South Fargo Investment
For Sale
Contact for pricing
1324 25th Ave S, Fargo, ND 58103
Commercial property with tenant in place, South Fargo location.
Property Size3,956 SF
Price / SF$132.71
Days on Market950
Property Features for 1324 25th Ave S
General Information
Standard status
Active
Size
3,956 SF
Property subtype
Retail
Lease Type
NNN
Building Details
Year Built
1975
Tenancy
Single
Listing Agency:
Goldmark Commercial Real Estate Inc
(701) 235-2900
Listed By:
Aaron Hill · License #ND 11183
Source:
Crexi
Added: Jan 17, 2024
Changed: Aug 12
Last Checked: Aug 23 at 4:41PM
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 Goldmark Commercial Real Estate Inc
Investment Insights
Based on property information with market context.
This commercial property in South Fargo presents an investment opportunity with a current tenant in place. The property, suitable for bars, pubs, restaurants, and other commercial real estate ventures, features a basement sports bar and dining area. Recent improvements exceeding $60,000 have been made, including upgrades to the roof and HVAC system. A new furnace and air conditioning system have been installed. The property benefits from its location just off I-94 and University Drive South. The property size is 3,956 square feet. There are no specials remaining.
Key Highlights
- Over $60k of recent improvements, including roof and HVAC.
- New furnace and air conditioning.
- No specials remaining.
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
$45,422
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
8.65%
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%
$908,440
$908.4K
Cap Rate 7%
$648,886
$648.9K
Cap Rate 9%
$504,689
$504.7K
Market Conditions
NOI Build-Up for 3,956 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
$64.1K $16.20/SF
− Vacancy
−$3.5K −$0.89/SF
EGI
$60.6K $15.31/SF
− OpEx
−$15.1K −$3.83/SF
NOI
$45.4K $11.48/SF
Area
Fargo, ND
Vacancy
5.50%
Lease Rate
$16.20 /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%
$908,440
Cap Rate 7%
$648,886
Cap Rate 9%
$504,689
Alternative Uses
Best Use
Specialty Retail
$648.9K
$567.8K – $757.0K
NOI $45,422 @ 7.0% cap · market cap 8.65%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$858.2K
$750.9K – $1.00M
NOI $60,071 @ 7.0% cap · market cap 11.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
580
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 58103, ND
46,754
Population
25,241
Households
1.9
Avg Household Size
36
Median Age
37%
College-Educated
93%
High-School Grad
11.5 sq mi
ZIP Area
4,066
Density / Sq Mi
$57,699
Median Household Income
$38,241
Median Earnings
$831
Median Rent
$239,200
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
- Fargo Country Club — 509 26th Ave S, Fargo, ND 58103
- Pepper's Sports Cafe — 2510 S University Dr, Fargo, ND 58103
- Alibi Lounge — 1340 21st Ave S, Fargo, ND 58103
- The Bowler Inc. — 2630 S University Dr, Fargo, ND 58103
Frequently Asked Questions
What type of property is this?
Bar & Pub - Commercial property with tenant in place, South Fargo location.
Where is this bar & pub located?
The property is located at 1324 25th Ave S Fargo, ND.
What is the asking price?
The asking price for this property is $525,000.
What are key features of this property?
This property features: Over $60k of recent improvements, including roof and HVAC.; New furnace and air conditioning.; No specials remaining.
