Altoona Restaurant with Redevelopment
For Sale
Contact for pricing
3131 8th St SW, Altoona, IA
Restaurant with redevelopment potential, excellent visibility and access.
Property Size4,760 SF
Lot Size0.87 Acres
Price / SF$355.04
Days on Market1336
Property Features for 3131 8th St SW
General Information
Standard status
Active
Size
4,760 SF
Lot size
0.87 Acres
Property subtype
RETAIL
Listing Agency:
Cushman & Wakefield
(515) 309-4002
Listed By:
Christopher Stafford, CCIM · License #S44232000
(515) 554-0999
Source:
Moodyscre
Added: Jan 11, 2023
Changed: Aug 16
Last Checked: Sep 7 at 11:45AM
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 Cushman & Wakefield
Investment Insights
Based on property information with market context.
The property presents redevelopment and/or conversion potential, enhanced building design and exterior features, and superior monument and building signage. It features excellent visibility and access. The existing restaurant includes a patio and pick-up window. There is potential to expand the lot with right-of-way acquisition of 25 feet depth along the south property line. The restaurant is currently open and operating, with the owner planning to downsize. The property size is 4,760 square feet and is located in Altoona, Iowa.
Key Highlights
- Excellent visibility and access
- Redevelopment and/or conversion potential
- Superior monument and building signage
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
$60,726
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
3.59%
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%
$1,214,520
$1.2M
Cap Rate 7%
$867,514
$867.5K
Cap Rate 9%
$674,733
$674.7K
Market Conditions
NOI Build-Up for 4,760 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
$85.7K $18.00/SF
− Vacancy
−$4.7K −$0.99/SF
EGI
$81.0K $17.01/SF
− OpEx
−$20.2K −$4.25/SF
NOI
$60.7K $12.76/SF
Area
Polk County, IA
Vacancy
5.50%
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%
$1,214,520
Cap Rate 7%
$867,514
Cap Rate 9%
$674,733
Alternative Uses
Best Use
Specialty Retail
$867.5K
$759.1K – $1.01M
NOI $60,726 @ 7.0% cap · market cap 3.59%
Second Best
Retail
$627.2K
$548.8K – $731.7K
NOI $43,902 @ 7.0% cap · market cap 2.60%
Theoretical Best
Flex RnD
$4.58M
$4.01M – $5.35M
NOI $320,748 @ 7.0% cap · market cap 18.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
441
Businesses Nearby
366k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 39%
Superstores 24%
Shops & Services 15%
Home Improvements & Furnishings 10%
Target
Superstores
88,073 visits/mo
0.4 miles
Raising Cane's Chicken Fingers
Dining
36,178 visits/mo
0.0 miles
Lowe's
Home Improvements & Furnishings
33,501 visits/mo
0.4 miles
McDonald's
Dining
25,893 visits/mo
0.4 miles
Altoona #3
Shops & Services
23,623 visits/mo
0.2 miles
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Restaurant - Restaurant with redevelopment potential, excellent visibility and access.
Where is this restaurant located?
The property is located at 3131 8th St SW Altoona, IA.
What is the asking price?
The asking price for this property is $1,690,000.
What are key features of this property?
This property features: Excellent visibility and access; Redevelopment and/or conversion potential; Superior monument and building signage
