Building Details

Year Built 1914

Buildings 1

Tenancy Multi

Listing Agency: Fischels Commercial Group Show Phone

Listed By: Doug McAllister Show Phone

Source: Pinnaclerealtyia

Added: Sep 5 Last Checked: Sep 5 at 2:48PM

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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 Fischels Commercial Group

Investment Insights

Based on property information with market context.

This 4,800-square-foot mixed-use building combines commercial and residential space within a two-level configuration. The main floor contains commercial space with display windows and is currently occupied by the Kava House business; the business is excluded from the sale. Four one-bedroom apartments are located on the upper level. Updated mechanical systems and ongoing maintenance support the building’s existing layout.

Built in 1914, the property occupies 0.39 acres at 122 2nd Street SE in Swisher, Iowa. Commercial zoning supports the property’s mixed-use format. The offering includes the building only, providing a combination of storefront commercial space and upstairs apartment units in a single asset.

Key Highlights

• 4,800 SF mixed‑use building
• Four upstairs one‑bedroom apartments
• Main‑level commercial space with display windows

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

$45,481

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

6.50%

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%

$909,620 $909.6K

Cap Rate 7%

$649,729 $649.7K

Cap Rate 9%

$505,344 $505.3K

Market Conditions

NOI Build-Up for 4,800 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

$69.1K $14.40/SF

− Vacancy

−$4.1K −$0.86/SF

EGI

$65.0K $13.54/SF

− OpEx

−$19.5K −$4.06/SF

NOI

$45.5K $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%

$909,620

Cap Rate 7%

$649,729

Cap Rate 9%

$505,344

Alternative Uses

Best Use

Retail

$649.7K

$568.5K – $758.0K (±1% cap)

NOI $45,481 @ 7.0% cap · market cap 6.50%

Second Best

Multifamily LT 5

$632.6K

$553.5K – $738.0K (±1% cap)

NOI $44,281 @ 7.0% cap · market cap 6.33%

Theoretical Best

Office A

$1.04M

$912.4K – $1.22M (±1% cap)

NOI $72,991 @ 7.0% cap · market cap 10.43%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Kava House & Cafe Restaurant

Suggested Use

Top Pick Auto Repair Shop Plumbing Service (Bike/Boat/Book/etc) Store Auto Parts Store Hair Salon Dental Office

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Multi-tenant

Tenancy

Location Intelligence

Trade Area within ½ mile

64

Businesses Nearby

Explore this area Business Placement

Demographics for 52338, IA

3,457

Population

1,380

Households

2.5

Avg Household Size

45

Median Age

44%

College-Educated

98%

High-School Grad

33.4 sq mi

ZIP Area

104

Density / Sq Mi

$124,357

Median Household Income

$58,253

Median Earnings

$1,067

Median Rent

$384,600

Median Home Value

Market

Vacancy Rate% for Multifamily in Midwest region

6.5% 2022

7.5% 2023

7.8% 2024

8% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this mixed-use properties located? What is the asking price? Find similar properties What are key features of this property?

Similar For Sale Nearby

Mixed-Use Building with Apartments

122 2nd Street SE, Swisher, IA 52338

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Office Building with Retail Use

2601 120th St. NW, Swisher, IA 52338

$495,000

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Office-Retail Mixed-Use Building

2601 120th St. NW, Swisher, IA 52338

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Frequently Asked Questions

What type of property is this?

Mixed-use property - Main-level commercial space is paired with four upstairs one-bedroom apartments.

Where is this mixed-use property located?

The property is located at 122 2nd Street SE Swisher, IA.

What is the asking price?

The asking price for this property is $699,950.

What are key features of this property?

This property features: 4,800 SF mixed‑use building; Four upstairs one‑bedroom apartments; Main‑level commercial space with display windows