Saint Paul Commercial Property For
For Sale
Contact for pricing
981 Payne Ave, Saint Paul, MN 55130
Commercial property in a high-growth area with income potential.
Property Size1,556 SF
Price / SF$160.67
Days on Market280
Property Features for 981 Payne Ave
General Information
Standard status
Active
Size
1,556 SF
Class
C
Property subtype
Office, Retail
Zoning
B2 Community Business
Occupancy
100%
Investment Type
Value Add
Building Details
Year Built
1922
Buildings
1
Stories
1
Units
1
Tenancy
Single
Listing Agency:
KW Commercial Woodbury - East Suburban
Listed By:
William Schultz · License #40835740
Source:
Crexi
Added: Nov 11, 2025
Changed: Aug 8
Last Checked: Aug 18 at 12:42PM
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 KW Commercial Woodbury - East Suburban
Investment Insights
Based on property information with market context.
This commercial property is located in the Payne-Phalen corridor of Saint Paul. The property features a single commercial space totaling approximately 1,600 square feet, divided into three connected sections. Currently, two sections are occupied by a beauty salon, while the third serves as a barbershop/salon area. The layout allows for continued use as a multi-operator salon or reconfiguration into a single retail or service space. The property has undergone recent upgrades. The Payne Avenue corridor is experiencing revitalization, anchored by the Hamm’s Brewery redevelopment and the Latino Economic Development Center’s transformation, which will introduce a new event center, commercial kitchen, restaurants, and retail to the area. The property offers investors, business owners, or portfolio buyers an income-producing asset in a high-growth, community-driven district. The property size is 1556 square feet.
Key Highlights
- Located in the heart of Saint Paul’s thriving Payne‑Phalen corridor, experiencing major revitalization.
- Fully built‑out commercial property of approximately 1,600 square feet**, currently operating as a beauty salon and barbershop.
- Flexible layout allows for continued use as a multi‑operator salon or reconfiguration into a single cohesive retail or service space.
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
$16,410
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
6.56%
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%
$328,200
$328.2K
Cap Rate 7%
$234,429
$234.4K
Cap Rate 9%
$182,333
$182.3K
Market Conditions
NOI Build-Up for 1,556 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
$28.0K $18.00/SF
− Vacancy
−$4.6K −$2.93/SF
EGI
$23.4K $15.07/SF
− OpEx
−$7.0K −$4.52/SF
NOI
$16.4K $10.55/SF
Area
Dakota County, MN
Vacancy
16.30%
Lease Rate
$18.00 /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%
$328,200
Cap Rate 7%
$234,429
Cap Rate 9%
$182,333
Alternative Uses
Best Use
Retail
$234.4K
$205.1K – $273.5K
NOI $16,410 @ 7.0% cap · market cap 6.56%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$382.9K
$335.1K – $446.7K
NOI $26,804 @ 7.0% cap · market cap 10.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,388
Businesses Nearby
48k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 68%
Dining 25%
Electronics 5%
Home Improvements & Furnishings 3%
Holiday Station Store
Shops & Services
13,908 visits/mo
0.4 miles
Mister Car Wash
Shops & Services
11,776 visits/mo
0.3 miles
Burger King
Dining
11,264 visits/mo
0.2 miles
Speedway
Shops & Services
4,990 visits/mo
0.4 miles
Metro by T-Mobile
Electronics
2,301 visits/mo
0.5 miles
Demographics for 55130, MN
18,581
Population
6,368
Households
2.9
Avg Household Size
28
Median Age
21%
College-Educated
73%
High-School Grad
2.0 sq mi
ZIP Area
9,291
Density / Sq Mi
$53,281
Median Household Income
$36,740
Median Earnings
$1,151
Median Rent
$220,300
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?
Retail space - Commercial property in a high-growth area with income potential.
Where is this retail space located?
The property is located at 981 Payne Ave Saint Paul, MN.
What is the asking price?
The asking price for this property is $250,000.
What are key features of this property?
This property features: Located in the heart of Saint Paul’s thriving Payne‑Phalen corridor, experiencing major revitalization.; Fully built‑out commercial property of approximately 1,600 square feet**, currently operating as a beauty salon and barbershop.; Flexible layout allows for continued use as a multi‑operator salon or reconfiguration into a single cohesive retail or service space.
