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    940 Mckinley Pkwy Delano, MN 55328

    Sponsored
    For Sale
    $349,000

    1,932 SF Warehouse, Vacant, 2023 Built

    Property size:
    1,932 SF

    Description

    Added:
    Dec 11, 2024
    Days on Market:
    403
    This 1,932-square-foot warehouse unit in Delano, Minnesota's West End Autoplex & Business Center is a prime investment opportunity. Built in 2023, this vacant unit boasts 20-foot ceilings, 14 dock-high doors, and 5" concrete floors with floor drains. The unit features commercial-grade windows and doors (16' wide x 14' tall), attractive LP Smartside siding, and fire suppression. In-floor radiant heating is installed, with the option to add a split system for additional climate control. Three-phase power, water, and sewer are already plumbed in, and a roughed-in bathroom is included. The unit is part of a four-building complex with 42 units total, situated on 940 McKinley Pkwy, Delano, MN 55328, and is zoned for commercial use. A mezzanine level can be added, expanding the space to 2,604 square feet. The asking price is $349,000 ($180.64/sq ft). Upgrades such as a mezzanine, ADA bathroom, paint, and epoxy flooring are available. The property is suitable for various uses, including office/warehouse, workshop, showroom, or even a personal garage. The main floor can be expanded by combining it with another unit or creating a pass-through. Financing options include a 10-year fixed-rate loan at 8.75% or a 5-year balloon with 20-year amortization at 8.5% (as of December 1, 2023). A 20% cash down payment or more is required, along with a personal financial statement, two years of personal and business tax returns, and a credit report. The closing will take place at Title Mark in Waconia.

    Property Features for 940 Mckinley Pkwy

    General Information

    Property type
    Distribution properties
    Square Feet
    1,932 SF

    Building Details

    Year Built/Renovated
    2023/2023
    Buildings
    4
    Stories
    1
    Units
    42

    We can help!

    Listing Contact
    Martin
    Martin "Marty" Turner

    Learn more

    HighLights

    • 1,932 sq ft warehouse unit in Delano, MN's West End Autoplex, built in 2023, asking $349,000 ($180.64/sq ft).
    • 20% cash down payment required for purchase, plus any upgrades.
    • Financing options include a 10‑year fixed‑rate loan at 8.75% or a 5‑year balloon with 20‑year amortization at 8.5% (as of December 1, 2023).
    • Purchase through a newly formed RE holding company is acceptable with a personal guarantee.
    • Closing at Title Mark in Waconia; upgrade funds held in escrow.
    • Financial requirements include a personal financial statement, two years of personal and business tax returns, and a credit report.
    Property Profile Location Intelligence

    Current Use by Public Records

    Self storage facilities

    Suggested Use

    Realty agency Auto Parts Store Bakery Pet Store

    Zoning and permitted uses should be independently verified with local authorities.

    Location Insight

    • Map
    • Local Demand
    City
    Delano
    County
    Wright
    State
    Minnesota
    Longitude
    -93.8115
    Latitude
    45.052104

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    FAQs

    What type of property is this?
    Distribution property - 1,932 SF Warehouse, Vacant, 2023 Built
    Where is this distribution property located?
    The property is located at 940 Mckinley Pkwy Delano, MN.
    What is the asking price?
    The asking price for this property is $349,000.
    What are key features of this property?
    This property features: 1,932 sq ft warehouse unit in Delano, MN's West End Autoplex, built in 2023, asking $349,000 ($180.64/sq ft).; 20% cash down payment required for purchase, plus any upgrades.; Financing options include a 10-year fixed-rate loan at 8.75% or a 5-year balloon with 20-year amortization at 8.5% (as of December 1, 2023).
    Request Owner's contact information
    940 Mckinley Pkwy Delano, MN 55328
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    Delano, MN 55328
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    Realmo Value Estimations

    Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods. 

    Disclaimer

    These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.
    Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.
    By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.

    AI approach

    Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.

    Realmo CapRate Calculation

    Realmo calculates the Capitalization Rate (Cap Rate) to help estimate a property's potential return on investment. The Cap Rate is a fundamental metric in commercial real estate that measures the relationship between a property's net operating income and its market value.

    How We Calculate Cap Rate

    Cap Rate Formula:
    Cap Rate (%) = (Net Operating Income / Property Value) × 100

    Net Operating Income (NOI) Formula:
    NOI = Area × Lease Rate × (1 - Vacancy Rate) × (1 - Operating Expense Ratio)

    Components

    Net Operating Income (NOI) represents the annual income a property generates after operating expenses:

    • Area: Building square footage from property records
    • Lease Rate: Annual $/sqft based on market data for the property type and geographic location
    • Vacancy Rate: Percentage of unoccupied space based on market data for the property type and location
    • Operating Expense Ratio: Operating costs as a percentage of income, varies by property type

    Property Value is derived from:

    • Recent sale price (if available)
    • Statistical models using comparable sales
    • AI-powered valuation estimates

    Example Calculation

    For a 100,000 sqft Office Building:

    • Lease Rate: $25.00/sqft/year (market data for Office in this area)
    • Vacancy Rate: 8% (market data for Office in this area)
    • Operating Expense Ratio: 35% (typical for Office properties)
    • Property Value: $15,000,000

    Step 1: Calculate NOI

    NOI = 100,000 × $25.00 × (1 - 0.08) × (1 - 0.35)
    NOI = 100,000 × $25.00 × 0.92 × 0.65
    NOI = $1,495,000/year

    Step 2: Calculate Cap Rate

    Cap Rate = ($1,495,000 / $15,000,000) × 100
    Cap Rate = 9.97%

    Property Type Considerations

    Net Operating Income calculations vary by property type due to different operating expense ratios:

    • Office: Higher expenses (30-40%) for HVAC, utilities, maintenance
    • Retail: Moderate expenses (25-35%) for common area maintenance
    • Industrial/Warehouse: Lower expenses (15-25%) for minimal tenant services
    • Multifamily: Moderate expenses (35-45%) including property management
    • Self-Storage: Lower expenses (25-35%) due to minimal maintenance

    Market lease rates and vacancy rates are specific to each property type and geographic location, reflecting local market conditions.

    Disclaimer

    These calculations are estimates for informational purposes only and should not be used as a substitute for professional financial analysis or appraisal.

    • Cap Rate calculations depend on market data that may change over time
    • Actual operating expenses, lease rates, and vacancy rates may differ from market averages
    • Individual property conditions, lease terms, and tenant quality significantly impact actual NOI
    • Property value estimates are approximations and not official appraisals
    • Cap rates vary widely by market, property condition, and investment risk profile

    Professional Guidance Recommended: Before making any investment or financial decisions, consult with licensed appraisers, commercial real estate brokers, and financial advisors who can evaluate your specific property and circumstances.
    By using this feature, you acknowledge that Realmo is not responsible for investment decisions or actions taken based on these estimates.

    Cap approach

    Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.

    Comparable approach

    Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.

    Relative

    Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.

    Geo

    Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.

    Stat Estimate

    This method estimates value based on actual market adjusted recent (~5 years) sales of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all similar sales ($/sqft) are above this value
    • Range-to: 75% of all similar sales ($/sqft) are below this value
    AI Estimate

    This method estimates value based on AI market estimation of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all estimations ($/sqft) are above this value
    • Range-to: 75% of all estimations ($/sqft) are below this value
    Alternative use

    Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.

    More about this property
    940 Mckinley Pkwy Delano, MN 55328
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    We can help!
    Listing Contact
    Martin
    Martin "Marty" Turner
    Real Estate License ID: MN 40381279
    Learn more
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