Freestanding Former Pizza Hut
For Sale
Contact for pricing
956 Lake Street South, Forest Lake, MN 55025
Standalone restaurant building with a flexible layout for retail, food service, or service-oriented uses.
Property Size3,200 SF
Price / SF$217.81
Days on Market25
Property Features for 956 Lake Street South
General Information
Standard status
Active
Size
3,200 SF
Total Parking Spaces
40
Property subtype
Retail
Investment Type
Owner/User
Building Details
Year Built
1979
Units
1
Listing Agency:
Bang Realty
(888) 737-2264
Listed By:
Brian Brockman · License #BRK.200900214
Source:
Crexi
Added: Aug 6
Changed: Aug 29
Last Checked: Aug 29 at 4:57PM
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 Bang Realty
Investment Insights
Based on property information with market context.
This freestanding former Pizza Hut restaurant contains 3,200 square feet and was built in 1979. The property includes an adaptable restaurant layout that can support continued food service or alternative retail and service-oriented uses. Its standalone configuration provides a defined commercial building for an owner-user, redevelopment plan, or repositioning strategy.
Located at 956 Lake Street South in Forest Lake, Minnesota, the property sits along an established commercial corridor with surrounding retail activity. The former operation recorded 27,400 annual visits from 15,100 unique visitors during its past 12 months of operation. It also ranked first among Pizza Hut locations within a 15-mile radius and 29th among 49 Pizza Hut locations in Minnesota.
Located at 956 Lake Street South in Forest Lake, Minnesota, the property sits along an established commercial corridor with surrounding retail activity. The former operation recorded 27,400 annual visits from 15,100 unique visitors during its past 12 months of operation. It also ranked first among Pizza Hut locations within a 15-mile radius and 29th among 49 Pizza Hut locations in Minnesota.
Key Highlights
- 3,200‑square‑foot freestanding restaurant building
- Built in 1979
- Former Pizza Hut location with adaptable restaurant layout
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
$48,470
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
6.95%
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%
$969,400
$969.4K
Cap Rate 7%
$692,429
$692.4K
Cap Rate 9%
$538,556
$538.6K
Market Conditions
NOI Build-Up for 3,200 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
$69.1K $21.60/SF
− Vacancy
−$4.5K −$1.40/SF
EGI
$64.6K $20.20/SF
− OpEx
−$16.2K −$5.05/SF
NOI
$48.5K $15.15/SF
Area
Washington County, MN
Vacancy
6.50%
Lease Rate
$21.60 /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%
$969,400
Cap Rate 7%
$692,429
Cap Rate 9%
$538,556
Alternative Uses
Best Use
Specialty Retail
$692.4K
$605.9K – $807.8K
NOI $48,470 @ 7.0% cap · market cap 6.95%
Second Best
Retail
$535.7K
$468.7K – $625.0K
NOI $37,498 @ 7.0% cap · market cap 5.38%
Theoretical Best
Office A
$888.9K
$777.8K – $1.04M
NOI $62,220 @ 7.0% cap · market cap 8.93%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
32
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 55025, MN
25,784
Population
10,522
Households
2.5
Avg Household Size
40
Median Age
36%
College-Educated
94%
High-School Grad
77.1 sq mi
ZIP Area
334
Density / Sq Mi
$95,993
Median Household Income
$51,041
Median Earnings
$1,355
Median Rent
$385,800
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Standalone restaurant building with a flexible layout for retail, food service, or service-oriented uses.
Where is this conventional restaurant located?
The property is located at 956 Lake Street South Forest Lake, MN.
What is the asking price?
The asking price for this property is $697,000.
What are key features of this property?
This property features: 3,200‑square‑foot freestanding restaurant building; Built in 1979; Former Pizza Hut location with adaptable restaurant layout
