5200 Douglas Dr N Minneapolis, MN 55429

This fee-simple medical office building, located at 5200 Douglas Dr N in Minneapolis, Minnesota, presents a compelling investment opportunity. The property boasts a 6,489 square foot building, fully renovated in 2023 with over $1.7 million in improvements, and is currently 100% occupied under a fifteen-year triple-net (NNN) lease with a credit-rated corporate guarantor. The lease commenced August 2, 2023, and includes three five-year renewal options. The current annual net operating income (NOI) is $325,815, yielding a 7.76% cap rate and a pro-forma cap rate of 9.26%. Rent increases are structured with an 8% bump in 2026, followed by 2.5% annual increases thereafter. Built in 1963, the property benefits from its recent comprehensive renovation and strategic location near multiple senior living communities (approximately 1,000 units within a two-mile radius). The long-term lease, strong tenant, and attractive rental increases make this a low-risk, high-reward investment opportunity. The asking price is $4,200,000 and is suitable for a 1031 exchange.