Industrial Building with Outdoor
For Sale
Contact for pricing
976 Minnehaha Ave W, MN
37,175 SF industrial building with fenced outdoor storage.
Property Size37,175 SF
Lot Size1.17 Acres
Price / SF$101.55
Days on Market558
Property Features for 976 Minnehaha Ave W
General Information
Standard status
Active
Size
37,175 SF
Lot size
1.17 Acres
Property subtype
INDUSTRIAL
Listing Agency:
Colliers
(952) 797-4307
Listed By:
Tom Sullivan
(952) 797-4307
Source:
Moodyscre
Added: Feb 10, 2025
Changed: Aug 19
Last Checked: Aug 21 at 9:19AM
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 Colliers
Investment Insights
Based on property information with market context.
This 37,175 square foot industrial building includes 8,175 square feet of office space. The property features fenced and gated outdoor storage. It offers convenient access to highways, transit options, and an international airport. The building has a clear height ranging from 12 to 14 feet and includes one drive-in door and one drive-in/dock door.
Key Highlights
- Significant $200,000 Price Reduction
- 37,175 SF Industrial Building with 8,175 SF of Office Space**
- Excellent Access to Highways, Transit, and International Airport
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
$300,997
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
7.97%
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%
$6,019,940
$6.0M
Cap Rate 7%
$4,299,957
$4.3M
Cap Rate 9%
$3,344,411
$3.3M
Market Conditions
NOI Build-Up for 37,175 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
$455.0K $12.24/SF
− Vacancy
−$25.0K −$0.67/SF
EGI
$430.0K $11.57/SF
− OpEx
−$129.0K −$3.47/SF
NOI
$301.0K $8.10/SF
Area
MN
Vacancy
5.50%
Lease Rate
$12.24 /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%
$6,019,940
Cap Rate 7%
$4,299,957
Cap Rate 9%
$3,344,411
Alternative Uses
Best Use
Warehouse
$5.14M
$4.50M – $6.00M
NOI $360,082 @ 7.0% cap · market cap 9.54%
Second Best
Industrial
$4.30M
$3.76M – $5.02M
NOI $300,997 @ 7.0% cap · market cap 7.97%
Theoretical Best
Office A
$9.24M
$8.08M – $10.78M
NOI $646,649 @ 7.0% cap · market cap 17.13%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
707
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Market
Vacancy Rate% for Industrial 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?
Warehouse - 37,175 SF industrial building with fenced outdoor storage.
Where is this warehouse located?
The property is located at 976 Minnehaha Ave W MN.
What is the asking price?
The asking price for this property is $3,775,000.
What are key features of this property?
This property features: Significant $200,000 Price Reduction; 37,175 SF Industrial Building with 8,175 SF of Office Space**; Excellent Access to Highways, Transit, and International Airport
