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    Freestanding Restaurant with Drive-Thru Title is generated by Realmo AI

    1513 Hwy 169 N, Algona, IA 50511

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    Claim this Listing
    For Sale
    $399,900

    COMMERCIAL - Algona, IA

    Property size:
    2,950 SF
    Lot size:
    0.75 Acres
    Price / SF:
    $135/SF
    Added:
    May 13, 2026
    Days on Market:
    19
    Last Refresh:
    May 31 at 1:06 pm

    Property Features for 1513 Hwy 169 N

    General Information

    Property type
    Commercial Sale
    Property subtype
    Other
    Zoning
    Commercial
    Parking
    41
    Standard status
    Active
    Size
    2,950 SF
    Lot size
    0.75 Acres

    Taxes and HOA fees

    Tax Annual Amount
    16589

    Building Details

    Floors in Building
    1

    We can help!

    Listing Contact
    Scott Underberg
    Scott Underberg

    Listing agent Scott Underberg

    Listing office Guthrie and Associates Real Estate 1302 Central Avenue Suite 200, Fort Dodge, IA

    Listing date May 13, 2026

    MLS# 29882

    Copyright © 2026 Fort Dodge Board of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.

    HighLights

    • High‑traffic location on US‑169/Highway 18 with prominent highway signage.
    • Fully equipped commercial kitchen and dedicated drive‑thru lane.
    • Freestanding 2,950 SF building suitable for QSR, restaurant, or food service.
    • Ample on‑site parking.
    • Surrounded by national retailers (Hy‑Vee, McDonald's, Pizza Ranch).
    • Turnkey interior with service counters, dining area, and existing kitchen infrastructure.

    Overview

    This is a freestanding former KFC/Long John Silver's combo restaurant in Algona, Iowa. The 2,950 square foot building is situated on high-traffic US-169/Highway 18. It features a fully equipped commercial kitchen, a dedicated drive-thru lane, and ample on-site parking. Prominent highway signage is visible to thousands of daily commuters. The location is surrounded by national retailers including Hy-Vee, McDonald's, and Pizza Ranch, drawing from a trade area of over 14,600 residents. The turnkey interior includes service counters, a dining area, and existing kitchen infrastructure. The property is situated on a 0.75-acre lot. It is zoned commercial and is suitable for a QSR, restaurant, or food service operator.

    Local Financial Insights For Specialty Retail

    Simulate Cap Rate and NOI

    NOI Build-Up
    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.

    Component $ $/SF
    Gross rent $45.7k $15.48
    − Vacancy −$1.2k −$0.40
    EGI $44.5k $15.08
    − OpEx −$11.1k −$3.77
    NOI $33.4k $11.31
    2,950 SF · lease $15.48/SF/yr · vacancy 2.60% · expense 25.00%

    Alternative Uses

    Best Use
    Specialty Retail
    $476.6K
    $417.0K – $556.0K (±1% cap)
    NOI $33,359 @ 7.0% cap · market cap 8.34%
    Second Best
    —
    —
    no second resolved use
    Theoretical Best
    Warehouse
    $2.20M
    $1.93M – $2.57M (±1% cap)
    NOI $154,017 @ 7.0% cap · market cap 38.51%
    Zoning and permitted uses should be independently verified with local authorities.
    Property Profile Location Intelligence

    Current Use by Public Records

    Drive through restaurants

    Suggested Use

    Restaurant Real Estate Agency Law Firm Building Supply Dental Office Spa & Massage Center Big Box & Wholesale Store Auto Repair Shop Hair Salon Gym & Fitness Center

    Zoning and permitted uses should be independently verified with local authorities.

    Location Insight

    • Map
    • Local Demand
    City
    Algona
    County
    Kossuth
    State
    Iowa
    Longitude
    -94.23782
    Latitude
    43.0824565

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    FAQs

    What type of property is this?
    Drive through restaurant - Former restaurant with drive-thru, available for lease or purchase.
    Where is this drive through restaurant located?
    The property is located at 1513 Hwy 169 N Algona, IA.
    What is the asking price?
    The asking price for this property is $399,900.
    What are key features of this property?
    This property features: High‑traffic location on US‑169/Highway 18 with prominent highway signage.; Fully equipped commercial kitchen and dedicated drive‑thru lane.; Freestanding 2,950 SF building suitable for QSR, restaurant, or food service.
    (515) 571-2761
    We can help!
    Listing Contact
    Scott Underberg
    Scott Underberg
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    Realmo Value Estimations

    Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods. 

    Disclaimer

    These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.
    Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.
    By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.

    AI approach

    Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.

    Realmo CapRate Calculation

    Realmo calculates the Capitalization Rate (Cap Rate) to help estimate a property's potential return on investment. The Cap Rate is a fundamental metric in commercial real estate that measures the relationship between a property's net operating income and its market value.

    How We Calculate Cap Rate

    Cap Rate Formula:
    Cap Rate (%) = (Net Operating Income / Property Value) × 100

    Net Operating Income (NOI) Formula:
    NOI = Area × Lease Rate × (1 - Vacancy Rate) × (1 - Operating Expense Ratio)

    Components

    Net Operating Income (NOI) represents the annual income a property generates after operating expenses:

    • Area: Building square footage from property records
    • Lease Rate: Annual $/sqft based on market data for the property type and geographic location
    • Vacancy Rate: Percentage of unoccupied space based on market data for the property type and location
    • Operating Expense Ratio: Operating costs as a percentage of income, varies by property type

    Property Value is derived from:

    • Recent sale price (if available)
    • Statistical models using comparable sales
    • AI-powered valuation estimates

    Example Calculation

    For a 100,000 sqft Office Building:

    • Lease Rate: $25.00/sqft/year (market data for Office in this area)
    • Vacancy Rate: 8% (market data for Office in this area)
    • Operating Expense Ratio: 35% (typical for Office properties)
    • Property Value: $15,000,000

    Step 1: Calculate NOI

    NOI = 100,000 × $25.00 × (1 - 0.08) × (1 - 0.35)
    NOI = 100,000 × $25.00 × 0.92 × 0.65
    NOI = $1,495,000/year

    Step 2: Calculate Cap Rate

    Cap Rate = ($1,495,000 / $15,000,000) × 100
    Cap Rate = 9.97%

    Property Type Considerations

    Net Operating Income calculations vary by property type due to different operating expense ratios:

    • Office: Higher expenses (30-40%) for HVAC, utilities, maintenance
    • Retail: Moderate expenses (25-35%) for common area maintenance
    • Industrial/Warehouse: Lower expenses (15-25%) for minimal tenant services
    • Multifamily: Moderate expenses (35-45%) including property management
    • Self-Storage: Lower expenses (25-35%) due to minimal maintenance

    Market lease rates and vacancy rates are specific to each property type and geographic location, reflecting local market conditions.

    Disclaimer

    These calculations are estimates for informational purposes only and should not be used as a substitute for professional financial analysis or appraisal.

    • Cap Rate calculations depend on market data that may change over time
    • Actual operating expenses, lease rates, and vacancy rates may differ from market averages
    • Individual property conditions, lease terms, and tenant quality significantly impact actual NOI
    • Property value estimates are approximations and not official appraisals
    • Cap rates vary widely by market, property condition, and investment risk profile

    Professional Guidance Recommended: Before making any investment or financial decisions, consult with licensed appraisers, commercial real estate brokers, and financial advisors who can evaluate your specific property and circumstances.
    By using this feature, you acknowledge that Realmo is not responsible for investment decisions or actions taken based on these estimates.

    Cap approach

    Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.

    Comparable approach

    Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.

    Relative

    Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.

    Geo

    Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.

    Stat Estimate

    This method estimates value based on actual market adjusted recent (~5 years) sales of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all similar sales ($/sqft) are above this value
    • Range-to: 75% of all similar sales ($/sqft) are below this value
    AI Estimate

    This method estimates value based on AI market estimation of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all estimations ($/sqft) are above this value
    • Range-to: 75% of all estimations ($/sqft) are below this value
    Alternative use

    Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.

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