For Sale
$2,175,000

2848 2 StSt. Cloud, MN 56301

High-yield retail investment, 7.03% cap rate.

Overview

Added:
Dec 11, 2024
Days on market:
116
This 14,873 square foot shopping center in St. Cloud, Minnesota, presents a compelling value-add opportunity. Built in 2001, the property boasts 90% occupancy and a strong NOI of $152,812, translating to a price per square foot of $146.24. Situated on a 1.1-acre lot zoned C5 - Highway Commercial District, the property enjoys a prime location on 2nd Street South, benefiting from high daily traffic counts of 25,000 vehicles. The average suite size is a desirable 1,859 square feet, with current gross leases averaging $20 per square foot, offering significant potential for NOI growth through lease conversions upon expiration. The property features a recently overlaid parking lot and benefits from its proximity to high-traffic destinations, including Costco, which attracts 1.7 million visitors annually. St. Cloud's thriving economy, fueled by a large student population (over 35,000 students in higher education) and a growing healthcare sector (18% of employment), further enhances the investment potential. With a population exceeding 100,000 within a 5-mile radius and a significant portion holding bachelor's degrees or higher, this property offers a strong tenant base and promising long-term growth prospects. The asking price is $2,175,000.

Highlights

  • 90% occupancy allows immediate value-add through lease-up. Conversion of gross leases to net leases upon expiration will significantly increase NOI.
  • Low average rent of $20/SF (gross), desirable average suite size of 1,859 SF, high traffic location (25,000 cars/day on 2nd Street), proximity to Costco (1.7M annual visitors), strong demographics (126,000 daytime/100,000 population within 5 miles), and attractive building with new parking lot.
  • St. Cloud's large student population (35,000+) and highly educated workforce (30%+ bachelor's degrees or higher).
  • St. Cloud is a rapidly growing Minnesota metro area with the state's fastest-growing labor force and a burgeoning healthcare sector (18% of employment).

Property Details for 2848 2 St

Property type
Lifestyle centers, Power centers
Square Feet
14,873 SF
Year Built
2001
Stories
1
Lot Size (sq. ft)
47,916 SF

Location Insight

City
St. Cloud
County
Stearns
State
Minnesota
Latitude
45.54781928
Longitude
-94.19303785
2848 2 St, St. Cloud, Minnesota

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2848 2 St
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