$1,495,000
Investment Summary
- Monthly Cash Flow
- -$9,853
- Cap Rate
- -2.2%
- Cash-on-Cash Return
- -34.4%
- Debt Coverage Ratio
- -0.39
- Internal Rate of Return (5 years)
- -29.1%
Cash Flow
Net Operating Income (NOI) minus mortgage payments.
Calculation:
NOI - Mortgage Payments
Cap Rate (Market Value)
Capitalization Rate is a rate of return that compares the yearly Net Operating Income (NOI) to the market value.
Calculation:
NOI / Market Value
Cash-on-Cash Return (CoC)
Annual Cash Flow / Cash Invested
Calculation:
Annual cash flow divided by initial cash invested.
Debt Coverage Ratio (DCR)
Net Operating Income (NOI) divided by total debt payments.
Calculation:
NOI / Total Debt Payments
Internal Rate of Return (IRR)
A metric for assessing profitability over time. IRR is the discount rate at which the net present value (NPV) of all future cash flows (positive and negative) from an investment equals zero — including both periodic cash flow (such as rent) and a projected sale at the end of the holding period. It represents the expected annualized return, accounting for income, expenses, and the recovery of capital through a future sale.
Property Description
Where History and Modernity Converge: Apartment 304 at 510 Groveland A rare opportunity awaits in one of Minneapolis’s most iconic residences. Apartment 304 at 510 Groveland is the result of a visionary renovation that combined two former units—304 and 310—along with reclaimed hallway space, into a seamless, double-corner residence. Rebuilt from the studs in 2014 by Welch Forsman and further refined in 2022, this exceptional home offers a graceful union of historic character and modern sophistication. With windows on three sides, the apartment is bathed in natural light throughout the day. Views extend across the neighborhood and toward the downtown skyline, offering a striking urban backdrop from the kitchen and entertaining spaces. The interiors are crisp and contemporary, defined by white walls, cabinetry, and ceilings that create a serene, gallery-like atmosphere. Nearly all lighting has been upgraded to designer fixtures, with the notable exception of the original chandelier preserved in the primary suite—a quiet tribute to the building’s 1920s origins. At the heart of the home is a chef’s kitchen designed for beauty and performance. Sub-Zero, Wolf, and Asko appliances are paired with Dornbracht fixtures, a beverage fridge, and an oversized island that anchors the space. The adjacent dining and lounge areas flow naturally, framed by elegant double doors that offer flexibility and privacy for entertaining. Rich Italian herringbone hardwood floors and custom millwork run throughout, while the living room features a pressure-fitted wood ceiling for added architectural interest. A Lutron-controlled lighting system and whole-home audio elevate the daily living experience, and custom built-ins provide discreet, integrated storage across every room. Both bedrooms are tucked away from the main living areas, creating quiet, private retreats. The primary suite features a rare wood-burning fireplace and a custom walk-in closet. Its ensuite bath, clad in marble, includes heated floors, a curbless walk-in shower, soaking tub, and double vanities illuminated by natural light. The guest suite is equally refined, with a generous footprint, ample closet space, and a private bath finished in timeless materials and neutral tones. A separate powder room near the main living area adds further convenience without compromising the privacy of the bedroom suites. 510 Groveland continues to distinguish itself through both historic charm and forward-thinking stewardship. Recent capital improvements include full window replacement in 2019, roof replacement and tuck-pointing in 2020, a major drainpipe lining project in 2023, LED lighting retrofits, and ongoing common area renovations including new hallway carpet and repainting throughout 2024 and 2025. These updates ensure long-term reliability and mechanical efficiency while preserving architectural integrity. Residents enjoy 24/7 front desk service and an on-site caretaker, along with well-maintained fitness and laundry rooms. The garage includes a car wash bay and secure bike storage with an air pump. A fenced west lawn offers outdoor relaxation, and a private rooftop terrace recently opened with stunning views of the Minneapolis skyline—the paid membership is already included and transferable. Additional private storage is also included. As a unique benefit, residents enjoy a discount at PS Steak, located conveniently on the building’s first floor. Apartment 304 is more than a home—it is a carefully curated living experience in one of Minneapolis’s most storied and sought-after addresses. Every element, from its bespoke interiors to its enduring architectural framework, reflects a commitment to design, craftsmanship, and livability. This is a residence to be experienced—and cherished—for generations.
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Location
Property Details
Parking
- Description: Assigned, Attached Garage, Concrete, Shared Driveway, Garage Door Opener
- Details: Shared Driveway, Assigned, Garage Door Opener, Heated Garage, Secured, Driveway, Garage
- Garage Spaces: 2
- Spaces Total: 0
Bedroom Information
- # of Bedrooms: 2
Bathroom Information
- # of Baths (Full): 1
- # of Baths (Partial): 1
- # of Baths (Total): 3.0
Interior Features
- # of Rooms: 10
- # of Stories: 1
- Basement Description: None
- Fireplace: Yes
Exterior Features
- Exterior Walls Materials: Rock, Stone
- Roof Type: Flat
- Roof Material: Composition
HOA
- Has HOA: Yes
- Association: First Service Residential
- HOA Fee: $5,037/monthly
Land Information
- Land Use: Residential
- Land Use Subtype: Townhouse
Lot Information
- Parcel ID: 2702924320291
- Lot Size: 871 sqft
Property Information
- Property Type: Condominium
- Style: (CC) High Rise (4+ Levels)
- Year Built: 1927
Tax Information
- Annual Tax: $15,120
Utilities
- Water & Sewer: Public
- Heating: Forced Air, Zoned, Radiant Floor
- Cooling: Central Air
Location
- County: Hennepin
Listing Details
Investment Summary
- Monthly Cash Flow
- -$9,853
- Cap Rate
- -2.2%
- Cash-on-Cash Return
- -34.4%
- Debt Coverage Ratio
- -0.39
- Internal Rate of Return (5 years)
- -29.1%
Cash Flow
Net Operating Income (NOI) minus mortgage payments.
Calculation:
NOI - Mortgage Payments
Cap Rate (Market Value)
Capitalization Rate is a rate of return that compares the yearly Net Operating Income (NOI) to the market value.
Calculation:
NOI / Market Value
Cash-on-Cash Return (CoC)
Annual Cash Flow / Cash Invested
Calculation:
Annual cash flow divided by initial cash invested.
Debt Coverage Ratio (DCR)
Net Operating Income (NOI) divided by total debt payments.
Calculation:
NOI / Total Debt Payments
Internal Rate of Return (IRR)
A metric for assessing profitability over time. IRR is the discount rate at which the net present value (NPV) of all future cash flows (positive and negative) from an investment equals zero — including both periodic cash flow (such as rent) and a projected sale at the end of the holding period. It represents the expected annualized return, accounting for income, expenses, and the recovery of capital through a future sale.
Purchase Details
Purchase PriceThe price paid for the property. Purchase price:
| $1,495,000 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$1,196,000 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $299,000 |
Closing CostsFees and expenses associated with purchasing a property, typically ranging from 2% to 5% of the home’s purchase price, paid at the end of a home purchase to cover services like lending, title transfer, and taxes. Closing costs:
| $44,850 |
Rehab CostsCosts incurred to repair or improve the property, including: roof, flooring, exterior siding, kitchen, exterior paint, bathrooms, etc. Rehab costs:
| $0 |
Initial Cash InvestedThe total initial cash invested in the property. Calculation:Down payment + Buying costs + Rehab costs Initial cash invested:
| $343,850 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 2,533 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $590 |
Monthly Rent Per Square FootMonthly rent divided by the number of square feet. This ratio helps investors compare rental income efficiency across properties, markets, and unit sizes Calculation:Monthly Rent / Square Feet Monthly rent per square foot:
| $2.01 |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $1,196,000 |
|---|---|
Loan to Value Ratio (LTV)Loan amount divided by the market value of the property. Calculation:Loan Amount / Market Value
Loan to value ratio:
| 80.0% |
Loan TypeThe type of loan (e.g., fixed, adjustable).
Loan type:
| Amortizing |
TermThe loan repayment period in years.
Term:
| 30 years |
Interest RateThe percentage a lender charges on the borrowed amount of a loan, determining the cost of borrowing money.
Interest rate:
| 5.875% |
Principal & Interest (PI)The principal is the portion of the loan payment that reduces the loan balance. The interest is the lender's charge for borrowing money. Calculation:(P * r * (1 + r) ** n) / ((1 + r) ** n - 1) Where:
P = Loan amount (principal)
Principal & interest:
| $7,075 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $1,260 |
InsuranceThe costs for insurance coverage to protect against financial losses due to risks like fire, natural disasters, theft, liability, or tenant-related damages. Calculation:Assumes 7% of gross rental income, unless insurance rates are specified.
Insurance:
| $357 |
Private Mortgage Insurance (PMI)A fee that borrowers pay when they take out a conventional loan with a loan-to-value (LTV) ratio above 80%.
Private mortgage insurance (PMI):
| $0 |
Monthly PaymentThe fixed amount a borrower pays each month to repay a loan. It typically includes principal and interest (P&I) and may also cover property taxes, insurance, HOA fees, and PMI if escrowed. Monthly payment:
| $8,692 |
Operating Income
| % Rent | Monthly | Yearly | |
|---|---|---|---|
Gross RentThe total rental income received from tenants before deducting any expenses. Includes base rent, late fees, pet fees, parking fees, and other recurring charges.
Gross rent:
| $5,100 | $61,200 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$306 | -$3,672 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $4,794 | $57,528 |
Operating Expenses
| % Rent | Monthly | Yearly | |
|---|---|---|---|
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services. | 25% | -$1,260 | -$15,120 |
InsuranceThe costs for insurance coverage to protect against financial losses due to risks like fire, natural disasters, theft, liability, or tenant-related damages. Calculation:Assumes 7% of gross rental income, unless insurance rates are specified. | 7% | -$357 | -$4,284 |
Property ManagementThe costs associated with hiring a property manager to handle the day-to-day operations of a rental property. Includes management fees, leasing fes, eviction fees, etc. Calculation:Assumes 8% of gross rental income. | 8% | -$408 | -$4,896 |
Repairs & MaintenanceOngoing costs for routine upkeep and minor fixes needed to keep a property in good working condition. Calculation:Assumes 5% of gross rental income. Varies by property age and condition. | 5% | -$255 | -$3,060 |
Capital ExpensesLarge, infrequent costs for major improvements or replacements, like a new roof, HVAC system, or appliances. Calculation:Assumes 5% of gross rental income. Varies by property age. | 5% | -$255 | -$3,060 |
HOA FeesRegular dues paid to a Homeowners Association for community maintenance, amenities, and management. Similar fees include: Condo Association Fees, Co-op Maintenance Fees, etc. | 99% | -$5,037 | -$60,444 |
Operating ExpensesRecurring costs required to maintain and manage a rental property, including property taxes, insurance, maintenance, repairs, utilities (if paid by the owner), property management fees, and other day-to-day expenses. Calculation:Insurance + Property Taxes + Property Management + Repairs & Maintenance + Capital Expenditures + HOA Fees | 148% | -$7,572 | -$90,864 |
Cash Flow
| Monthly | Yearly | |
|---|---|---|
Net Operating Income (NOI)The income generated from a property after deducting all operating expenses but before deducting mortgage payments, taxes, and capital expenditures. Calculation:Gross Operating Income - Operating Expenses
Net operating income:
| -$2,778 | -$33,336 |
Mortgage PaymentThe fixed amount a borrower pays each month to repay a loan. It typically includes principal and interest (P&I) and may also cover property taxes, insurance, HOA fees, and PMI if escrowed. | -$7,075 | -$84,900 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | $9,853 | $118,236 |