Remodeled Penthouse Office
For Sale
$350,000
1250-425 2nd St Se, Cedar Rapids, IA 52401
Remodeled top-floor office suite with private offices, conference space, and reception, plus shared skywalk access.
Property Size3,430 SF
Price / SF$102.04
Days on Market251
Property Features for 1250-425 2nd St Se
General Information
Standard status
Active
Size
3,430 SF
Total Parking Spaces
8
Additional Details
Office Units
6
Taxes and HOA fees
Annual Taxes
$2,654
Listing Agency:
SKOGMAN REALTY COMMERCIAL
(319) 730-5732
Listed By:
Tiffany Earl Williams-WSG CRE
(319) 730-5732
Source:
Exprealty
Added: Dec 9, 2025
Changed: Aug 8
Last Checked: Aug 16 at 2:29PM
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 SKOGMAN REALTY COMMERCIAL
Investment Insights
Based on property information with market context.
This remodeled penthouse suite in Plaza 425 offers a functional office layout with six private offices, conference rooms, and a reception area. The suite is designed for professional day-to-day use, with window views from the top floor. The total suite area is 3,430 SF.
Plaza 425 is attached to the skywalk and city parkade, providing covered, convenient building access. The building is served by high-speed fiber, supporting modern connectivity needs for office tenants and users. The seller controls eight parking spots that can be transferred to the buyer.
For buyers or owner-operators looking for a move-in-ready office space, this configuration supports teams that need individual offices alongside meeting and client-facing reception. The combination of penthouse-level natural light, on-site meeting space, and direct skywalk and parkade connectivity can help simplify tenant and visitor access for a range of office users.
Plaza 425 is attached to the skywalk and city parkade, providing covered, convenient building access. The building is served by high-speed fiber, supporting modern connectivity needs for office tenants and users. The seller controls eight parking spots that can be transferred to the buyer.
For buyers or owner-operators looking for a move-in-ready office space, this configuration supports teams that need individual offices alongside meeting and client-facing reception. The combination of penthouse-level natural light, on-site meeting space, and direct skywalk and parkade connectivity can help simplify tenant and visitor access for a range of office users.
Key Highlights
- Nicely remodeled penthouse top‑floor office suite in Plaza 425
- Suite layout includes six private offices, conference room(s), and reception
- Total suite size is 3,430 SF
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
$16,473
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
4.71%
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%
$329,460
$329.5K
Cap Rate 7%
$235,329
$235.3K
Cap Rate 9%
$183,033
$183.0K
Market Conditions
NOI Build-Up for 3,430 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
$28.8K $8.40/SF
− Vacancy
−$6.8K −$2.00/SF
EGI
$22.0K $6.40/SF
− OpEx
−$5.5K −$1.60/SF
NOI
$16.5K $4.80/SF
Area
Cedar Rapids, IA
Vacancy
23.77%
Lease Rate
$8.40 /SF/Yr
Expense Ratio
25.00%
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%
$329,460
Cap Rate 7%
$235,329
Cap Rate 9%
$183,033
Alternative Uses
Best Use
Office B
$235.3K
$205.9K – $274.6K
NOI $16,473 @ 7.0% cap · market cap 4.71%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$496.4K
$434.4K – $579.2K
NOI $34,750 @ 7.0% cap · market cap 9.93%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
6
Office units
Location Intelligence
Trade Area within ½ mile
1,086
Businesses Nearby
Explore this area
Business Placement
Demographics for 52401, IA
2,320
Population
1,480
Households
1.6
Avg Household Size
35
Median Age
35%
College-Educated
89%
High-School Grad
1.2 sq mi
ZIP Area
1,933
Density / Sq Mi
$40,675
Median Household Income
$38,635
Median Earnings
$783
Median Rent
$143,800
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Remodeled top-floor office suite with private offices, conference space, and reception, plus shared skywalk access.
Where is this office units located?
The property is located at 1250-425 2nd St Se Cedar Rapids, IA.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: Nicely remodeled penthouse top‑floor office suite in Plaza 425; Suite layout includes six private offices, conference room(s), and reception; Total suite size is 3,430 SF
