Multifamily Investment Property Near
For Sale
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732 736 740 Michael St, Iowa City, IA 52246
Three buildings with 42 units near UIHC and Kinnick Stadium.
Property Size16,128 SF
Price / SF$226.31
Days on Market680
Property Features for 732 736 740 Michael St
General Information
Standard status
Active
Size
16,128 SF
Property subtype
Multifamily
Zoning
RES
Occupancy
100%
Investment Type
Value Add
Net Operating Income
$216,340
Building Details
Buildings
3
Units
42
Listing Agency:
Lepic-Kroeger, REALTORS
(319) 321-7199
Listed By:
Matthew Lepic · License #IA B45389000
Source:
Crexi
Added: Oct 15, 2024
Changed: Aug 14
Last Checked: Aug 24 at 10:49PM
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 Lepic-Kroeger, REALTORS
Investment Insights
Based on property information with market context.
This multifamily property features 42 units across three buildings, each containing 14 units. The unit mix includes 36 one-bedroom, one-bath units and 6 studio units. The property has undergone several renovations, including roof replacements in 2018. Many units feature new carpeting, updated kitchens, and new bathtubs. The property is located near the University of Iowa Hospitals & Clinics (UIHC) and the West University of Iowa campus, and is within walking distance of Kinnick Stadium. The total property size is 16128 square feet. Rents have shown a pattern of steady increases. Tenants are transitioning to a Ratio Utility Billing System (RUBS) for utility payments as they enter new lease terms.
Key Highlights
- Conveniently located near UIHC, West University of Iowa campus, and Kinnick Stadium.
- 42 multifamily units (36 one‑bedroom, one‑bath and 6 studio units).
- Roofs replaced in 2018.
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
$137,952
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
3.78%
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%
$2,759,040
$2.8M
Cap Rate 7%
$1,970,743
$2.0M
Cap Rate 9%
$1,532,800
$1.5M
Market Conditions
NOI Build-Up for 16,128 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
$261.3K $16.20/SF
− Vacancy
−$10.5K −$0.65/SF
EGI
$250.8K $15.55/SF
− OpEx
−$112.9K −$7.00/SF
NOI
$138.0K $8.55/SF
Area
Johnson County, IA
Vacancy
4.00%
Lease Rate
$16.20 /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%
$2,759,040
Cap Rate 7%
$1,970,743
Cap Rate 9%
$1,532,800
Alternative Uses
Best Use
Apartment 5plus
$1.97M
$1.72M – $2.30M
NOI $137,952 @ 7.0% cap · market cap 3.78%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.50M
$3.07M – $4.09M
NOI $245,249 @ 7.0% cap · market cap 6.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,513
Businesses Nearby
Explore this area
Business Placement
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 Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Three buildings with 42 units near UIHC and Kinnick Stadium.
Where is this apartment building located?
The property is located at 732 736 740 Michael St Iowa City, IA.
What is the asking price?
The asking price for this property is $3,650,000.
What are key features of this property?
This property features: Conveniently located near UIHC, West University of Iowa campus, and Kinnick Stadium.; 42 multifamily units (36 one‑bedroom, one‑bath and 6 studio units).; Roofs replaced in 2018.
