Mixed-Use Building in
For Sale
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1934 Hennepin Ave, Minneapolis, MN 55403
26,587 SF mixed-use building on 0.34 acres for sale.
Property Size26,758 SF
Lot Size0.34 Acres
Price / SF$125.20
Days on Market919
Property Features for 1934 Hennepin Ave
General Information
Standard status
Active
Size
26,758 SF
Class
A
Total Parking Spaces
15
Lot size
0.34 Acres
Property subtype
Mixed Use, Office, Retail
Investment Type
Value Add
Building Details
Year Renovated
2013
Buildings
1
Tenancy
Multi
Listing Agency:
Cushman & Wakefield - Bloomington, Minnesota
Listed By:
William Melin · License #MN S56957000
(952) 465-3377
Source:
Crexi
Added: Feb 29, 2024
Changed: Aug 14
Last Checked: Sep 4 at 3:38AM
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 Cushman & Wakefield - Bloomington, Minnesota
Investment Insights
Based on property information with market context.
The Burch Building, located at 1934 Hennepin Ave and 1925 Colfax Ave S in Minneapolis, Minnesota, is available for acquisition. This mixed-use property encompasses approximately 26,587 square feet and is situated on approximately 0.34 acres. The offering includes a nearby parking lot and billboard income.
Key Highlights
- Opportunity to acquire The Burch Building as a fee simple interest.
- Property size is approximately 26,587 SF.
- Located at 1934 Hennepin Ave and 1925 Colfax Ave S, Minneapolis, Minnesota.
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
$302,041
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
9.02%
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%
$6,040,820
$6.0M
Cap Rate 7%
$4,314,871
$4.3M
Cap Rate 9%
$3,356,011
$3.4M
Market Conditions
NOI Build-Up for 26,758 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
$497.7K $18.60/SF
− Vacancy
−$14.4K −$0.54/SF
EGI
$483.3K $18.06/SF
− OpEx
−$181.2K −$6.77/SF
NOI
$302.0K $11.29/SF
Area
Minneapolis, MN
Vacancy
2.90%
Lease Rate
$18.60 /SF/Yr
Expense Ratio
37.50%
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%
$6,040,820
Cap Rate 7%
$4,314,871
Cap Rate 9%
$3,356,011
Alternative Uses
Best Use
Mixed Use
$4.31M
$3.78M – $5.03M
NOI $302,041 @ 7.0% cap · market cap 9.02%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$6.38M
$5.59M – $7.45M
NOI $446,873 @ 7.0% cap · market cap 13.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,890
Businesses Nearby
Explore this area
Business Placement
Demographics for 55403, MN
17,707
Population
12,906
Households
1.4
Avg Household Size
35
Median Age
59%
College-Educated
96%
High-School Grad
1.4 sq mi
ZIP Area
12,648
Density / Sq Mi
$59,928
Median Household Income
$50,876
Median Earnings
$1,199
Median Rent
$285,200
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - 26,587 SF mixed-use building on 0.34 acres for sale.
Where is this mixed-use property located?
The property is located at 1934 Hennepin Ave Minneapolis, MN.
What is the asking price?
The asking price for this property is $3,350,000.
What are key features of this property?
This property features: Opportunity to acquire The Burch Building as a fee simple interest.; Property size is approximately 26,587 SF.; Located at 1934 Hennepin Ave and 1925 Colfax Ave S, Minneapolis, Minnesota.
