Restaurant with Commercial
For Sale
$215,000
955 E Sheridan St, Ely, MN 55731
Open-concept dining space features a fireplace, outdoor deck, and landscaped seating area.
Property Size1,900 SF
Price / SF$113.16
Days on Market76
Property Features for 955 E Sheridan St
General Information
Standard status
Active
Size
1,900 SF
Additional Details
Patio
Yes
Taxes and HOA fees
Annual Taxes
$3,698
Amenities
fireplace
landscaping
seasonal flowers
Building Details
Construction
half-log siding
Listing Agency:
Bear Island Realty LLC
(218) 343-9173
Listed By:
Kate Davies · License #40403900
(218) 343-9173
Source:
Exprealty
Added: Jun 5
Changed: Aug 15
Last Checked: Aug 19 at 10:02AM
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 Bear Island Realty LLC
Investment Insights
Based on property information with market context.
Located at 955 E Sheridan St in Ely, this restaurant property includes a full commercial kitchen and an open-concept interior arranged for dining use. The building features half-log siding, a fireplace, and finished spaces that retain a distinct Northwoods character. The property measures 1,900 SF.
An outdoor deck extends the guest area and is bordered by landscaping and seasonal flowers. Customer access and parking are provided, while the existing layout may also accommodate continued restaurant use or other commercial concepts. The property is currently operating as a restaurant and includes the possibility of on-site owner quarters or rental income.
An outdoor deck extends the guest area and is bordered by landscaping and seasonal flowers. Customer access and parking are provided, while the existing layout may also accommodate continued restaurant use or other commercial concepts. The property is currently operating as a restaurant and includes the possibility of on-site owner quarters or rental income.
Key Highlights
- Current restaurant operation with full commercial kitchen
- 1,900 SF property in Ely, MN
- Open‑concept interior with fireplace and half‑log siding
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
$7,515
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
3.50%
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%
$150,300
$150.3K
Cap Rate 7%
$107,357
$107.4K
Cap Rate 9%
$83,500
$83.5K
Market Conditions
NOI Build-Up for 1,900 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
$11.2K $5.88/SF
− Vacancy
−$436 −$0.23/SF
EGI
$10.7K $5.65/SF
− OpEx
−$3.2K −$1.70/SF
NOI
$7.5K $3.96/SF
Area
St. Louis County, MN
Vacancy
3.90%
Lease Rate
$5.88 /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%
$150,300
Cap Rate 7%
$107,357
Cap Rate 9%
$83,500
Alternative Uses
Best Use
Specialty Retail
$737.0K
$644.9K – $859.9K
NOI $51,593 @ 7.0% cap · market cap 24.00%
Second Best
Industrial
$107.4K
$93.9K – $125.3K
NOI $7,515 @ 7.0% cap · market cap 3.50%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
244
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 55731, MN
5,494
Population
4,954
Households
1.1
Avg Household Size
54
Median Age
41%
College-Educated
94%
High-School Grad
1,606.7 sq mi
ZIP Area
3
Density / Sq Mi
$62,900
Median Household Income
$31,840
Median Earnings
$641
Median Rent
$202,900
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Open-concept dining space features a fireplace, outdoor deck, and landscaped seating area.
Where is this conventional restaurant located?
The property is located at 955 E Sheridan St Ely, MN.
What is the asking price?
The asking price for this property is $215,000.
What are key features of this property?
This property features: Current restaurant operation with full commercial kitchen; 1,900 SF property in Ely, MN; Open‑concept interior with fireplace and half‑log siding
