Two-Unit Duplex with Off-Street
For Sale
$214,900
964 87th Ave W, Duluth, MN 55808
Upstairs and main-floor residences offer separate living and dining areas.
Property Size2,370 SF
Price / SF$90.68
Days on Market12
Property Features for 964 87th Ave W
General Information
Standard status
Active
Size
2,370 SF
Property subtype
Residential Income
Taxes and HOA fees
Annual Taxes
$2,186
Listing Agency:
Coldwell Banker Realty - Duluth
(218) 728-5161
Listed By:
Madeline Amala
(218) 348-8626
Source:
Exprealty
Added: Sep 9
Changed: Sep 17
Last Checked: Sep 19 at 12:32PM
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 Coldwell Banker Realty - Duluth
Investment Insights
Based on property information with market context.
This 2,370-square-foot up-and-down duplex includes two residential units with bright interiors and wood flooring beneath carpeted areas. The upper residence features a living room, dining room, kitchen with pantry, two bedrooms, one bathroom, a bonus room, and a deck. The main-level unit provides its own living room, dining room, kitchen, two bedrooms, and one bathroom. A basement adds laundry facilities and storage, while rear off-street parking supports both units.
The property is located at 964 87th Ave W in Duluth’s Morgan Park area. Major updates include furnaces installed in 2016 and 2017, water heaters installed in 2019 and 2023, and a roof replacement completed in 2013.
The property is located at 964 87th Ave W in Duluth’s Morgan Park area. Major updates include furnaces installed in 2016 and 2017, water heaters installed in 2019 and 2023, and a roof replacement completed in 2013.
Key Highlights
- 2,370‑square‑foot duplex with two separate residential units
- Upper unit includes two bedrooms, one bathroom, bonus room, pantry, and deck
- Main‑level unit offers two bedrooms, one bathroom, living room, dining room, and kitchen
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
$19,409
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
9.03%
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%
$388,180
$388.2K
Cap Rate 7%
$277,271
$277.3K
Cap Rate 9%
$215,656
$215.7K
Market Conditions
NOI Build-Up for 2,370 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
$37.5K $15.84/SF
− Vacancy
−$2.3K −$0.95/SF
EGI
$35.3K $14.89/SF
− OpEx
−$15.9K −$6.70/SF
NOI
$19.4K $8.19/SF
Area
St. Louis County, MN
Vacancy
6.00%
Lease Rate
$15.84 /SF/Yr
Expense Ratio
45.00%
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%
$388,180
Cap Rate 7%
$277,271
Cap Rate 9%
$215,656
Alternative Uses
Best Use
Multifamily LT 5
$301.7K
$264.0K – $352.0K
NOI $21,120 @ 7.0% cap · market cap 9.83%
Second Best
Apartment 5plus
$277.3K
$242.6K – $323.5K
NOI $19,409 @ 7.0% cap · market cap 9.03%
Theoretical Best
Specialty Retail
$919.4K
$804.4K – $1.07M
NOI $64,355 @ 7.0% cap · market cap 29.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
98
Businesses Nearby
Explore this area
Business Placement
Demographics for 55808, MN
5,943
Population
2,786
Households
2.1
Avg Household Size
40
Median Age
21%
College-Educated
93%
High-School Grad
12.0 sq mi
ZIP Area
495
Density / Sq Mi
$59,808
Median Household Income
$45,987
Median Earnings
$933
Median Rent
$157,500
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in Midwest region
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Frequently Asked Questions
What type of property is this?
Duplex - Upstairs and main-floor residences offer separate living and dining areas.
Where is this duplex located?
The property is located at 964 87th Ave W Duluth, MN.
What is the asking price?
The asking price for this property is $214,900.
What are key features of this property?
This property features: 2,370‑square‑foot duplex with two separate residential units; Upper unit includes two bedrooms, one bathroom, bonus room, pantry, and deck; Main‑level unit offers two bedrooms, one bathroom, living room, dining room, and kitchen
