Absolute NNN Retail
New
For Sale
$1,350,000
121 W Benton St., Iowa City, IA 52246
The property is subject to an absolute NNN lease with tenant responsibility for taxes, insurance, HVAC, maintenance, and roof.
Property Size4,480 SF
Price / SF$301.34
Days on Market6
Property Features for 121 W Benton St.
General Information
Standard status
Active
Size
4,480 SF
Property subtype
Commercial
Zoning
CC2
Lease Type
NNN
Financials
Asking Price
$1,350,000
Cap Rate
7.42%
Amenities
Other
0.38
CountyRoad
Building Details
Year Built
1974
Listing Agency:
GLD Commercial Real Estate Advisors
(319) 981-2378
Listed By:
Kyle Steele
(319) 981-2378
Source:
Pinnaclerealtyia
Added: Aug 17
Changed: Aug 21
Last Checked: Aug 21 at 7:59AM
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 GLD Commercial Real Estate Advisors
Investment Insights
Based on property information with market context.
This 4,480-square-foot retail property was built in 1974 and is located at 121 W Benton St. in Iowa City. The asset carries CC2 zoning and is positioned along the W Benton Street corridor, with access serving the University of Iowa community and surrounding neighborhoods.
The lease is structured on an absolute NNN basis, assigning taxes, insurance, HVAC, maintenance, and roof obligations to the tenant. The current term extends through July 2033 and includes two 10-year renewal options. Contractual rent increases are set at 2% annually during the initial term and renewal periods. The property reflects a 7.42% cap rate based on current NOI.
The lease is structured on an absolute NNN basis, assigning taxes, insurance, HVAC, maintenance, and roof obligations to the tenant. The current term extends through July 2033 and includes two 10-year renewal options. Contractual rent increases are set at 2% annually during the initial term and renewal periods. The property reflects a 7.42% cap rate based on current NOI.
Key Highlights
- Absolute NNN lease places taxes, insurance, HVAC, maintenance, and roof responsibilities with the tenant
- 4,480‑square‑foot retail property on W Benton Street in Iowa City
- Lease term runs through July 2033
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
$42,449
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
3.14%
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%
$848,980
$849.0K
Cap Rate 7%
$606,414
$606.4K
Cap Rate 9%
$471,656
$471.7K
Market Conditions
NOI Build-Up for 4,480 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
$64.5K $14.40/SF
− Vacancy
−$3.9K −$0.86/SF
EGI
$60.6K $13.54/SF
− OpEx
−$18.2K −$4.06/SF
NOI
$42.4K $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%
$848,980
Cap Rate 7%
$606,414
Cap Rate 9%
$471,656
Alternative Uses
Best Use
Retail
$606.4K
$530.6K – $707.5K
NOI $42,449 @ 7.0% cap · market cap 3.14%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$973.2K
$851.6K – $1.14M
NOI $68,125 @ 7.0% cap · market cap 5.05%
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
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Frequently Asked Questions
What type of property is this?
NNN property - The property is subject to an absolute NNN lease with tenant responsibility for taxes, insurance, HVAC, maintenance, and roof.
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 $1,350,000.
What are key features of this property?
This property features: Absolute NNN lease places taxes, insurance, HVAC, maintenance, and roof responsibilities with the tenant; 4,480‑square‑foot retail property on W Benton Street in Iowa City; Lease term runs through July 2033
