Downtown Brick Office
New
For Sale
$650,000
414 Northwestern Avenue, Ames, IA 50010
Commercial Sale, Ames, IA
Property Size4,290 SF
Lot Size0.26 Acres
Price / SF$151.52
Days on Market7
Property Features for 414 Northwestern Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
C
Directions
Lincoln Way to North on Grand Ave - go left on 6th Street then left on Northwestern. it is located across the street from Wheatsfield Grocery Store.
Subdivision
0001 - Ames NE
Standard status
Active
APN
09-03-479-025
Size
4,290 SF
Lot size
0.26 Acres
Taxes and HOA fees
Tax Description
TRIANGLE ADD LOTS 3 & 5 & NW CORNER LOT 6, TRIANGLE ADD LOTS 1 & 2, TRIANGLE ADD LOT 4 COMM NW COR LOT 7 S5.4' TO BEG S6
Tax Annual Amount
8811
Legal Description
TRIANGLE ADD LOTS 3 & 5 & NW CORNER LOT 6, TRIANGLE ADD LOTS 1 & 2, TRIANGLE ADD LOT 4 COMM NW COR LOT 7 S5.4' TO BEG S6
Utilities
Sewer type
Public Sewer
Heating system
Natural Gas, Forced Air
Cooling system
Central Air
Water source
Public
Building Details
Year built
1964
Floors in Building
2
Flooring type
Vinyl, Carpet
Building materials
Concrete, Wood
Roof type
Rubber
Listing Agency:
Hunziker & Assoc.-Ames
(515) 233-4450
Listed By:
Chuck Winkleblack · License #B32796
(515) 233-4450
Added: Aug 19
Last Checked: Aug 25 at 4:06PM
MLS# 71051
Copyright © 2026 Central Iowa Board of Realtors, Inc. 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 4,290-square-foot office building was constructed in 1964 and features a brick exterior, four separate office spaces, and common bathrooms. The property occupies a 0.26-acre lot with 28 parking spaces. Interior finishes include vinyl and carpet flooring, while building systems include natural gas forced-air heat and central air conditioning. Public water and public sewer serve the property, and the roof is rubber.
Located in downtown Ames, the property is within walking distance of restaurants, retail, and professional services. The building includes 1,100 SF of unleased space and is zoned C, offering an existing office configuration with available area for an owner-user or investor.
Located in downtown Ames, the property is within walking distance of restaurants, retail, and professional services. The building includes 1,100 SF of unleased space and is zoned C, offering an existing office configuration with available area for an owner-user or investor.
Key Highlights
- 4,290 SF office building on a 0.26‑acre lot
- Four separate office spaces with common bathrooms
- 28 on‑site parking spaces
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
$46,911
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
7.22%
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%
$938,220
$938.2K
Cap Rate 7%
$670,157
$670.2K
Cap Rate 9%
$521,233
$521.2K
Market Conditions
NOI Build-Up for 4,290 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
$77.2K $18.00/SF
− Vacancy
−$14.7K −$3.42/SF
EGI
$62.5K $14.58/SF
− OpEx
−$15.6K −$3.65/SF
NOI
$46.9K $10.94/SF
Area
Story County, IA
Vacancy
19.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
25.00%
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%
$938,220
Cap Rate 7%
$670,157
Cap Rate 9%
$521,233
Alternative Uses
Best Use
Office B
$670.2K
$586.4K – $781.9K
NOI $46,911 @ 7.0% cap · market cap 7.22%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.00M
$877.2K – $1.17M
NOI $70,178 @ 7.0% cap · market cap 10.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,852
Businesses Nearby
Explore this area
Business Placement
Demographics for 50010, IA
32,552
Population
14,732
Households
2.2
Avg Household Size
30
Median Age
59%
College-Educated
98%
High-School Grad
60.3 sq mi
ZIP Area
540
Density / Sq Mi
$65,701
Median Household Income
$27,672
Median Earnings
$981
Median Rent
$243,200
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Four separate office areas, shared bathrooms, and on-site parking support a flexible professional workplace.
Where is this office building located?
The property is located at 414 Northwestern Avenue Ames, IA.
What is the asking price?
The asking price for this property is $650,000.
What are key features of this property?
This property features: 4,290 SF office building on a 0.26‑acre lot; Four separate office spaces with common bathrooms; 28 on‑site parking spaces
