Former Restaurant Building For
For Sale
Contact for pricing
Pending
1212 36th St S, Fargo, ND 58103
Former quick service restaurant building for sale or lease.
Property Size4,284 SF
Days on Market1000
Property Features for 1212 36th St S
General Information
Standard status
Pending
Size
4,284 SF
Total Parking Spaces
51
Property subtype
Retail
Zoning
Commercial
Lease Type
NNN
Building Details
Year Built
2014
Listing Agency:
Goldmark Commercial Real Estate Inc
Listed By:
Paul Campbell · License #ND 10554
(701) 893-2826
Source:
Crexi
Added: Dec 9, 2023
Changed: Aug 28
Last Checked: Aug 30 at 11:52PM
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 Goldmark Commercial Real Estate Inc
Investment Insights
Based on property information with market context.
This is a former restaurant building available for sale or lease, situated at the crossroads of I-29 and 13th Avenue S. The stand-alone quick service restaurant building features a visible pylon sign, a large parking lot, and a drive-thru. Traffic counts near the property include over 66,000 on I-29 and 27,000 on 13th Avenue. The building has a total area of 4284 square feet. Inside, the turn-key restaurant space includes seating areas, booth fixtures, a large order counter, a kids play area, two restrooms, a kitchen area with equipment available, sinks, and an office area. This property is suitable for a new business or investment.
Key Highlights
- High‑traffic location at the intersection of I‑29 and 13th Avenue S.
- Turn‑key quick service restaurant space with existing seating areas, order counter, and kitchen area with equipment available.
- Stand‑alone building with drive‑thru.
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
$49,188
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
5.18%
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%
$983,760
$983.8K
Cap Rate 7%
$702,686
$702.7K
Cap Rate 9%
$546,533
$546.5K
Market Conditions
NOI Build-Up for 4,284 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
$69.4K $16.20/SF
− Vacancy
−$3.8K −$0.89/SF
EGI
$65.6K $15.31/SF
− OpEx
−$16.4K −$3.83/SF
NOI
$49.2K $11.48/SF
Area
Fargo, ND
Vacancy
5.50%
Lease Rate
$16.20 /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%
$983,760
Cap Rate 7%
$702,686
Cap Rate 9%
$546,533
Alternative Uses
Best Use
Specialty Retail
$702.7K
$614.9K – $819.8K
NOI $49,188 @ 7.0% cap · market cap 5.18%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$929.3K
$813.2K – $1.08M
NOI $65,052 @ 7.0% cap · market cap 6.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,207
Businesses Nearby
Explore this area
Business Placement
Demographics for 58103, ND
46,754
Population
25,241
Households
1.9
Avg Household Size
36
Median Age
37%
College-Educated
93%
High-School Grad
11.5 sq mi
ZIP Area
4,066
Density / Sq Mi
$57,699
Median Household Income
$38,241
Median Earnings
$831
Median Rent
$239,200
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?
Drive through restaurant - Former quick service restaurant building for sale or lease.
Where is this drive through restaurant located?
The property is located at 1212 36th St S Fargo, ND.
What is the asking price?
The asking price for this property is $950,000.
What are key features of this property?
This property features: High‑traffic location at the intersection of I‑29 and 13th Avenue S.; Turn‑key quick service restaurant space with existing seating areas, order counter, and kitchen area with equipment available.; Stand‑alone building with drive‑thru.
