Multi-Purpose Retail Building with
For Sale
$899,999
1104 Federal Avenue, Mason City, IA 50401
Well-maintained multi-purpose retail building with flexible layout and on-site parking, suited for grocery, showroom, or service uses.
Property Size6,880 SF
Price / SF$130.81
Days on Market216
Property Features for 1104 Federal Avenue
General Information
Standard status
Active
Size
6,880 SF
Property subtype
Retail
Taxes and HOA fees
Annual Taxes
$5,964
Amenities
3
Building Details
Year Built
1955
Listing Agency:
(319) 290-4352
Listed By:
Miehe Commercial Real Estate
(319) 290-4352
Source:
Xome
Added: Jan 8
Changed: Aug 8
Last Checked: Aug 12 at 4:12AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Miehe Commercial Real Estate
Investment Insights
Based on property information with market context.
This well-maintained multi-purpose retail building offers a flexible interior layout designed to accommodate a range of retail and service-related concepts. The property is sized at 6,808 SF and includes numerous recent updates, supporting a move-in-ready option for an owner-occupant or a leasing opportunity for an investor.
Located at 1104 N Federal Ave in Mason City, the building provides excellent visibility along a high-traffic corridor and includes abundant on-site parking, supporting convenient customer access.
Located at 1104 N Federal Ave in Mason City, the building provides excellent visibility along a high-traffic corridor and includes abundant on-site parking, supporting convenient customer access.
Key Highlights
- 6,808 SF multi‑purpose commercial building at 1104 N Federal Ave, Mason City, built in 1955
- Flexible layout suited for grocery, convenience store, specialty retail, showroom, or service‑related uses
- Numerous recent updates for a move‑in‑ready option for an owner‑occupant
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
$71,595
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
7.96%
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%
$1,431,900
$1.4M
Cap Rate 7%
$1,022,786
$1.0M
Cap Rate 9%
$795,500
$795.5K
Market Conditions
NOI Build-Up for 6,880 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
$103.2K $15.00/SF
− Vacancy
−$7.7K −$1.13/SF
EGI
$95.5K $13.88/SF
− OpEx
−$23.9K −$3.47/SF
NOI
$71.6K $10.41/SF
Area
Cerro Gordo County, IA
Vacancy
7.50%
Lease Rate
$15.00 /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%
$1,431,900
Cap Rate 7%
$1,022,786
Cap Rate 9%
$795,500
Alternative Uses
Best Use
Specialty Retail
$1.02M
$894.9K – $1.19M
NOI $71,595 @ 7.0% cap · market cap 7.96%
Second Best
Retail
$759.6K
$664.6K – $886.2K
NOI $53,169 @ 7.0% cap · market cap 5.91%
Theoretical Best
Office A
$1.73M
$1.51M – $2.01M
NOI $120,894 @ 7.0% cap · market cap 13.43%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,118
Businesses Nearby
Explore this area
Business Placement
Demographics for 50401, IA
28,981
Population
14,746
Households
2
Avg Household Size
43
Median Age
22%
College-Educated
94%
High-School Grad
148.2 sq mi
ZIP Area
196
Density / Sq Mi
$63,807
Median Household Income
$38,929
Median Earnings
$868
Median Rent
$134,100
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Well-maintained multi-purpose retail building with flexible layout and on-site parking, suited for grocery, showroom, or service uses.
Where is this retail space located?
The property is located at 1104 Federal Avenue Mason City, IA.
What is the asking price?
The asking price for this property is $899,999.
What are key features of this property?
This property features: 6,808 SF multi‑purpose commercial building at 1104 N Federal Ave, Mason City, built in 1955; Flexible layout suited for grocery, convenience store, specialty retail, showroom, or service‑related uses; Numerous recent updates for a move‑in‑ready option for an owner‑occupant
