Single-Tenant NNN
For Sale
$1,200,000
1250 8th Street, West Des Moines, IA 50265
Single-tenant Mexican restaurant under a triple net lease near Interstate access and West Des Moines amenities.
Property Size4,063 SF
Days on Market95
Property Features for 1250 8th Street
General Information
Standard status
Active
Size
4,063 SF
Property subtype
Retail
Additional Details
Highway Access
Yes
Building Details
Building Size
4,063 SF
Year Built
1974
Tenancy
Single
Listing Agency:
Ferguson Commercial Real Estate Services
Listed By:
Roy Jensen · License #IA #S72747000
(515) 803-2895
Source:
Fergusoncres
Added: Jun 17
Changed: Sep 18
Last Checked: Sep 18 at 5:42AM
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 Ferguson Commercial Real Estate Services
Investment Insights
Based on property information with market context.
1250 8th Street is a single-tenant NNN investment property operated as a Mexican restaurant. The building is held under a triple net lease structure, placing the operating expense responsibilities on the tenant. The current occupant is El Fogon, providing an established restaurant use for an investor looking for a property designed around a long-term, tenant-led operation.
The property is located at 1250 8th Street in West Des Moines, Iowa. It benefits from convenient regional access, with proximity to Interstate 235 and the surrounding Des Moines metro area. The address also places the asset near Valley Junction, supporting visibility to everyday retail and dining traffic drawn to the local commercial district.
For buyers considering NNN restaurant real estate, this asset offers the simplicity of a single-tenant setup tied to an operating restaurant business. The triple net framework is intended to minimize landlord responsibility while still providing income exposure through the lease. This combination of a dedicated restaurant use and NNN structure may appeal to investors seeking an ownership position where the property is primarily supported by the tenant’s operations, rather than by ongoing landlord management.
The property is located at 1250 8th Street in West Des Moines, Iowa. It benefits from convenient regional access, with proximity to Interstate 235 and the surrounding Des Moines metro area. The address also places the asset near Valley Junction, supporting visibility to everyday retail and dining traffic drawn to the local commercial district.
For buyers considering NNN restaurant real estate, this asset offers the simplicity of a single-tenant setup tied to an operating restaurant business. The triple net framework is intended to minimize landlord responsibility while still providing income exposure through the lease. This combination of a dedicated restaurant use and NNN structure may appeal to investors seeking an ownership position where the property is primarily supported by the tenant’s operations, rather than by ongoing landlord management.
Key Highlights
- Single‑tenant NNN investment featuring a Mexican restaurant occupied by El Fogon
- Triple net lease structure with the restaurant as the operating tenant
- Year built: 1974
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
$51,834
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
4.32%
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%
$1,036,680
$1.0M
Cap Rate 7%
$740,486
$740.5K
Cap Rate 9%
$575,933
$575.9K
Market Conditions
NOI Build-Up for 4,063 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
$73.1K $18.00/SF
− Vacancy
−$4.0K −$0.99/SF
EGI
$69.1K $17.01/SF
− OpEx
−$17.3K −$4.25/SF
NOI
$51.8K $12.76/SF
Area
Polk County, IA
Vacancy
5.50%
Lease Rate
$18.00 /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%
$1,036,680
Cap Rate 7%
$740,486
Cap Rate 9%
$575,933
Alternative Uses
Best Use
Specialty Retail
$740.5K
$647.9K – $863.9K
NOI $51,834 @ 7.0% cap · market cap 4.32%
Second Best
—
—
no second resolved use
Theoretical Best
Flex RnD
$3.91M
$3.42M – $4.56M
NOI $273,781 @ 7.0% cap · market cap 22.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Single-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
936
Businesses Nearby
Explore this area
Business Placement
Demographics for 50265, IA
32,187
Population
15,104
Households
2.1
Avg Household Size
38
Median Age
48%
College-Educated
95%
High-School Grad
19.3 sq mi
ZIP Area
1,668
Density / Sq Mi
$84,588
Median Household Income
$49,785
Median Earnings
$1,065
Median Rent
$267,600
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in Midwest region
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Frequently Asked Questions
What type of property is this?
NNN property - Single-tenant Mexican restaurant under a triple net lease near Interstate access and West Des Moines amenities.
Where is this nnn property located?
The property is located at 1250 8th Street West Des Moines, IA.
What is the asking price?
The asking price for this property is $1,200,000.
What are key features of this property?
This property features: Single‑tenant NNN investment featuring a Mexican restaurant occupied by El Fogon; Triple net lease structure with the restaurant as the operating tenant; Year built: 1974
