Mixed-Use Property with Existing
For Sale
$1,800,000
321 Kirkwood Ave, Iowa City, IA 52240
Land, IowaCity, IA
Property Size14,000 SF
Lot Size0.58 Acres
Price / SF$128.57
Days on Market224
Property Features for 321 Kirkwood Ave
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
CC2 & CI1-RFC
Directions
South on Maiden Ln off Kirkwood Ave
Subdivision
IowaCity
Standard status
Active
APN
1015301001, 1015301002, 101530
Lot size
0.58 Acres
Taxes and HOA fees
Tax Year
2024
Tax Annual Amount
20898
Listing Agency:
Lepic-Kroeger, REALTORS
(319) 351-8811
Listed By:
Jeff Edberg · License #B33730000
(319) 331-6187
Added: Jan 13
Changed: Aug 19
Last Checked: Aug 25 at 7:06PM
MLS# 202600373
Copyright © 2026 Iowa City Area Association 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.
Investment Insights
Based on property information with market context.
This 0.58-acre mixed-use property includes approximately 14,000 SF of existing improvements that are occupied under short-term leases. The current configuration provides near-term income while preserving the option to retain the improvements or pursue redevelopment.
Zoned CC2 & CI1-RFC, the site falls within the Riverfront Crossing District and its form-based overlay. The framework allows mid-rise mixed-use development with commercial space at street level and apartments or condominiums above, reaching 6-7 stories. A public alley crosses the property and provides another route for vehicles; abandonment would require approval from the City Planning Department and City Council.
The property is near shopping and dining, blocks from downtown Iowa City and the University of Iowa main campus. A potential assemblage with 1030 Gilbert Street could add .55 acres of usable land to the development footprint.
Zoned CC2 & CI1-RFC, the site falls within the Riverfront Crossing District and its form-based overlay. The framework allows mid-rise mixed-use development with commercial space at street level and apartments or condominiums above, reaching 6-7 stories. A public alley crosses the property and provides another route for vehicles; abandonment would require approval from the City Planning Department and City Council.
The property is near shopping and dining, blocks from downtown Iowa City and the University of Iowa main campus. A potential assemblage with 1030 Gilbert Street could add .55 acres of usable land to the development footprint.
Key Highlights
- Approximately 14,000 SF of existing improvements on a 0.58‑acre property
- Short‑term leases currently occupy the existing improvements
- CC2 & CI1‑RFC zoning with Riverfront Crossing District form‑based overlay
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
$107,415
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
5.97%
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%
$2,148,300
$2.1M
Cap Rate 7%
$1,534,500
$1.5M
Cap Rate 9%
$1,193,500
$1.2M
Market Conditions
NOI Build-Up for 14,000 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
$184.8K $13.20/SF
− Vacancy
−$12.9K −$0.92/SF
EGI
$171.9K $12.28/SF
− OpEx
−$64.4K −$4.60/SF
NOI
$107.4K $7.67/SF
Area
Johnson County, IA
Vacancy
7.00%
Lease Rate
$13.20 /SF/Yr
Expense Ratio
37.50%
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%
$2,148,300
Cap Rate 7%
$1,534,500
Cap Rate 9%
$1,193,500
Alternative Uses
Best Use
Mixed Use
$1.53M
$1.34M – $1.79M
NOI $107,415 @ 7.0% cap · market cap 5.97%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.04M
$2.66M – $3.55M
NOI $212,890 @ 7.0% cap · market cap 11.83%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,304
Businesses Nearby
Explore this area
Business Placement
Demographics for 52240, IA
34,224
Population
17,035
Households
2
Avg Household Size
29
Median Age
47%
College-Educated
94%
High-School Grad
142.1 sq mi
ZIP Area
241
Density / Sq Mi
$55,189
Median Household Income
$25,508
Median Earnings
$1,065
Median Rent
$241,100
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Existing commercial improvements offer near-term occupancy alongside redevelopment potential under a form-based zoning overlay.
Where is this mixed-use property located?
The property is located at 321 Kirkwood Ave Iowa City, IA.
What is the asking price?
The asking price for this property is $1,800,000.
What are key features of this property?
This property features: Approximately 14,000 SF of existing improvements on a 0.58‑acre property; Short‑term leases currently occupy the existing improvements; CC2 & CI1‑RFC zoning with Riverfront Crossing District form‑based overlay
