Leased NNN
For Sale
$4,995,000
425 E Hwy 6, Iowa City, IA 52240
CommercialSale, IowaCity, IA
Property Size36,322 SF
Lot Size2.57 Acres
Price / SF$137.52
Days on Market85
Property Features for 425 E Hwy 6
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
CC2
Interior features
ZeroStepEntry
Directions
From Hwy 6, south on Boyrum, 1st drive on the right.
Subdivision
IowaCity
Standard status
Active
APN
1015460002
Lot size
2.57 Acres
Taxes and HOA fees
Tax Year
2023
Tax Annual Amount
103166
Utilities
Heating system
Natural Gas, Forced Air
Cooling system
Central Air
Building Details
Year built
1980
Flooring type
Concrete
Building materials
Frame, SteelOrMetal
Listing Agency:
Lepic-Kroeger, REALTORS
(319) 351-8811
Listed By:
Jeff Edberg · License #B33730000
(319) 331-6187
Added: Jun 2
Changed: Aug 19
Last Checked: Aug 25 at 7:06PM
MLS# 202603536
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 2.57-acre NNN property contains 36,322 square feet occupied by two long-term tenants. Advanced Auto occupies an 8,086-square-foot suite, while Goodwill Industries uses the remaining 28,277 square feet. The building was constructed in 1980 and includes concrete flooring, natural gas forced-air heating, central air conditioning, and a zero-step entry. The property is zoned CC2.
Located on E Hwy 6 in Iowa City, the site is adjacent to Waterfront Hy-Vee and benefits from approximately 125 shared parking spaces. Hwy 6 traffic is reported at 10,700 cars daily. The investment is fully occupied, with a reported 7.7% capitalization rate and NNN lease structures for both occupants.
Located on E Hwy 6 in Iowa City, the site is adjacent to Waterfront Hy-Vee and benefits from approximately 125 shared parking spaces. Hwy 6 traffic is reported at 10,700 cars daily. The investment is fully occupied, with a reported 7.7% capitalization rate and NNN lease structures for both occupants.
Key Highlights
- 36,322 SF fully occupied by Advanced Auto and Goodwill Industries
- 2.57‑acre site with approximately 125 shared parking spaces
- Advanced Auto occupies an 8,086 SF suite
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
$344,158
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
6.89%
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%
$6,883,160
$6.9M
Cap Rate 7%
$4,916,543
$4.9M
Cap Rate 9%
$3,823,978
$3.8M
Market Conditions
NOI Build-Up for 36,322 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
$523.0K $14.40/SF
− Vacancy
−$31.4K −$0.86/SF
EGI
$491.7K $13.54/SF
− OpEx
−$147.5K −$4.06/SF
NOI
$344.2K $9.48/SF
Area
Johnson County, IA
Vacancy
6.00%
Lease Rate
$14.40 /SF/Yr
Expense Ratio
30.00%
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%
$6,883,160
Cap Rate 7%
$4,916,543
Cap Rate 9%
$3,823,978
Alternative Uses
Best Use
Retail
$4.92M
$4.30M – $5.74M
NOI $344,158 @ 7.0% cap · market cap 6.89%
Second Best
Industrial
$3.11M
$2.72M – $3.62M
NOI $217,387 @ 7.0% cap · market cap 4.35%
Theoretical Best
Office A
$7.89M
$6.90M – $9.21M
NOI $552,327 @ 7.0% cap · market cap 11.06%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
10,700 VPD
Traffic count
100%
Occupancy
Multi-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,071
Businesses Nearby
149k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 36%
Dining 27%
Shops & Services 23%
Home Improvements & Furnishings 8%
Hy-Vee
Groceries
48,058 visits/mo
0.2 miles
Kwik Trip
Shops & Services
25,518 visits/mo
0.3 miles
Taco Bell
Dining
16,057 visits/mo
0.4 miles
Tractor Supply Co.
Home Improvements & Furnishings
9,357 visits/mo
0.2 miles
Burger King
Dining
8,707 visits/mo
0.1 miles
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
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
NNN property - Two established occupants fill the property, with shared parking and access along Hwy 6.
Where is this nnn property located?
The property is located at 425 E Hwy 6 Iowa City, IA.
What is the asking price?
The asking price for this property is $4,995,000.
What are key features of this property?
This property features: 36,322 SF fully occupied by Advanced Auto and Goodwill Industries; 2.57‑acre site with approximately 125 shared parking spaces; Advanced Auto occupies an 8,086 SF suite
