Des Moines Apartment
For Sale
$2,655,000
2519 Clarkson Avenue, Des Moines, IA 50310
45-unit apartment community with renovated units in Des Moines, Iowa.
Property Size27,360 SF
Price / SF$97.04
Days on Market151
Property Features for 2519 Clarkson Avenue
General Information
Standard status
Active
Size
27,360 SF
Property subtype
Multifamily
Listing Agency:
CBRE - Des Moines
(515) 415-6111
Listed By:
Ray Hamilton · License #S66838000
(515) 415-6111
Source:
Cbre
Added: Mar 27
Changed: Aug 23
Last Checked: Aug 21 at 9:42PM
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 CBRE - Des Moines
Investment Insights
Based on property information with market context.
Clarkson Apartments, a 45-unit apartment community, is available for acquisition in Des Moines, Iowa. The property is situated at the intersection of Douglas Avenue and MLK Jr Parkway, providing convenient access to retail, entertainment, and dining destinations, including downtown Des Moines, Ingersoll Avenue, Beaverdale, and Merle Hay Mall, all within a 10-minute radius. Local employment is supported by Bridgestone-Firestone, Drake University, Broadlawns Medical Center, and the VA Central Iowa Health Care System. The property at 2519 Clarkson Ave features a mix of one- and two-bedroom units, all of which have been renovated. Recent property enhancements include a new asphalt parking lot, newer boilers and hot water heaters, newer windows, and a new roof on Building C planned for 2026. The property offers an immediate cash flow opportunity and the ability to further enhance returns through strategic value-add initiatives, specifically the conversion of the former leasing office into a rentable unit and the implementation of a gas utility reimbursement program. The property size is 27360 square feet.
Key Highlights
- Renovated Units: All 45 units are already renovated.
- Prime Location: Highly accessible location at the intersection of Douglas Avenue and MLK Jr Parkway.
- Strong Employment Hub: Close proximity to major employers.
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
$228,039
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
8.59%
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%
$4,560,780
$4.6M
Cap Rate 7%
$3,257,700
$3.3M
Cap Rate 9%
$2,533,767
$2.5M
Market Conditions
NOI Build-Up for 27,360 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
$430.1K $15.72/SF
− Vacancy
−$15.5K −$0.57/SF
EGI
$414.6K $15.15/SF
− OpEx
−$186.6K −$6.82/SF
NOI
$228.0K $8.33/SF
Area
Des Moines, IA
Vacancy
3.60%
Lease Rate
$15.72 /SF/Yr
Expense Ratio
45.00%
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%
$4,560,780
Cap Rate 7%
$3,257,700
Cap Rate 9%
$2,533,767
Alternative Uses
Best Use
Apartment 5plus
$3.26M
$2.85M – $3.80M
NOI $228,039 @ 7.0% cap · market cap 8.59%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$6.74M
$5.90M – $7.86M
NOI $471,678 @ 7.0% cap · market cap 17.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
456
Businesses Nearby
Explore this area
Business Placement
Demographics for 50310, IA
30,754
Population
14,162
Households
2.2
Avg Household Size
37
Median Age
36%
College-Educated
86%
High-School Grad
8.0 sq mi
ZIP Area
3,844
Density / Sq Mi
$74,473
Median Household Income
$46,091
Median Earnings
$1,043
Median Rent
$213,800
Median Home Value
Market
Vacancy Rate% for Multifamily 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?
Apartment building - 45-unit apartment community with renovated units in Des Moines, Iowa.
Where is this apartment building located?
The property is located at 2519 Clarkson Avenue Des Moines, IA.
What is the asking price?
The asking price for this property is $2,655,000.
What are key features of this property?
This property features: Renovated Units: All 45 units are already renovated.; Prime Location: Highly accessible location at the intersection of Douglas Avenue and MLK Jr Parkway.; Strong Employment Hub: Close proximity to major employers.
