Single-Tenant NNN
New
For Sale
$1,585,000
121 W Benton St., Iowa City, IA 52246
Commercial building with an absolute NNN lease, annual rent increases, and renewal options in Iowa City.
Property Size6,760 SF
Price / SF$234.47
Days on Market5
Property Features for 121 W Benton St.
General Information
Standard status
Active
Size
6,760 SF
Property subtype
Commercial
Zoning
CC2
Lease Type
NNN
Amenities
Other
0.38
CountyRoad
Building Details
Year Built
1974
Listing Agency:
Ambrose & Associates, REALTORS
(319) 576-8327
Listed By:
Juliana Corona
(319) 576-8327
Source:
Pinnaclerealtyia
Added: Aug 18
Changed: Aug 21
Last Checked: Aug 21 at 4:13AM
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 Ambrose & Associates, REALTORS
Investment Insights
Based on property information with market context.
This single-tenant NNN property contains 6,760 square feet and was built in 1974. The absolute NNN lease places operating expenses with the tenant, reducing the owner’s direct management responsibilities. More than 7 years remain on the current 10-year lease, which also provides annual rent increases and two 10-year renewal options.
The property is located at 121 W Benton St. in Iowa City, Iowa, within the city’s commercial core. It carries CC2 zoning and offers an established leased commercial asset with a defined renewal structure. The property may be evaluated separately from another NNN opportunity referenced in the source information.
The property is located at 121 W Benton St. in Iowa City, Iowa, within the city’s commercial core. It carries CC2 zoning and offers an established leased commercial asset with a defined renewal structure. The property may be evaluated separately from another NNN opportunity referenced in the source information.
Key Highlights
- Absolute NNN lease with tenant responsibility for operating expenses
- More than 7 years remaining on a 10‑year lease
- Two 10‑year renewal options
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
$64,052
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
4.04%
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%
$1,281,040
$1.3M
Cap Rate 7%
$915,029
$915.0K
Cap Rate 9%
$711,689
$711.7K
Market Conditions
NOI Build-Up for 6,760 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
$97.3K $14.40/SF
− Vacancy
−$5.8K −$0.86/SF
EGI
$91.5K $13.54/SF
− OpEx
−$27.5K −$4.06/SF
NOI
$64.1K $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%
$1,281,040
Cap Rate 7%
$915,029
Cap Rate 9%
$711,689
Alternative Uses
Best Use
Retail
$915.0K
$800.7K – $1.07M
NOI $64,052 @ 7.0% cap · market cap 4.04%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.47M
$1.28M – $1.71M
NOI $102,795 @ 7.0% cap · market cap 6.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,738
Businesses Nearby
192k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 58%
Shops & Services 27%
Office Supplies 6%
Home Improvements & Furnishings 5%
McDonald's
Dining
37,057 visits/mo
0.0 miles
Kum & Go
Shops & Services
26,219 visits/mo
0.1 miles
Starbucks
Dining
24,488 visits/mo
0.2 miles
Staples
Office Supplies
11,026 visits/mo
0.0 miles
Arby's
Dining
10,746 visits/mo
0.2 miles
Demographics for 52246, IA
22,829
Population
10,627
Households
2.1
Avg Household Size
29
Median Age
67%
College-Educated
95%
High-School Grad
16.7 sq mi
ZIP Area
1,367
Density / Sq Mi
$55,088
Median Household Income
$28,598
Median Earnings
$1,049
Median Rent
$327,100
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 - Commercial building with an absolute NNN lease, annual rent increases, and renewal options in Iowa City.
Where is this nnn property located?
The property is located at 121 W Benton St. Iowa City, IA.
What is the asking price?
The asking price for this property is $1,585,000.
What are key features of this property?
This property features: Absolute NNN lease with tenant responsibility for operating expenses; More than 7 years remaining on a 10‑year lease; Two 10‑year renewal options
