Student Housing Portfolio in
For Sale
$4,300,000
519 Welch Avenue, Ames, IA 50014
47-unit student housing portfolio near Iowa State University.
Property Size31,307 SF
Price / SF$137.35
Days on Market96
Property Features for 519 Welch Avenue
General Information
Standard status
Active
Size
31,307 SF
Property subtype
Multifamily
Listing Agency:
(515) 249-8355
Listed By:
Max Colby · License #IA S61308000
(515) 249-8355
Source:
Cbre
Added: May 22
Changed: Aug 22
Last Checked: Aug 25 at 5:55AM
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 Max Colby
Investment Insights
Based on property information with market context.
This portfolio consists of three properties totaling 47 units, catering to student housing needs in Ames, Iowa, near Iowa State University. The properties are located at 626 S 16th Street, 212 Hayward Avenue, and 519 Welch Avenue. The portfolio benefits from its strategic positioning near Iowa State University, major employment hubs, retail areas, and transit corridors, ensuring consistently strong rental demand from both students and professionals. The properties have a history of 100% occupancy and early preleasing. The total property size is 31307 square feet. The portfolio offers immediate cash flow and long-term appreciation potential in a steadily growing rental market.
Key Highlights
- 47‑unit student housing portfolio near Iowa State University
- 100% occupancy history with early preleasing
- A+ locations near Iowa State University, employment, retail, and transit
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
$209,372
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
4.87%
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%
$4,187,440
$4.2M
Cap Rate 7%
$2,991,029
$3.0M
Cap Rate 9%
$2,326,356
$2.3M
Market Conditions
NOI Build-Up for 31,307 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
$402.0K $12.84/SF
− Vacancy
−$21.3K −$0.68/SF
EGI
$380.7K $12.16/SF
− OpEx
−$171.3K −$5.47/SF
NOI
$209.4K $6.69/SF
Area
Story County, IA
Vacancy
5.30%
Lease Rate
$12.84 /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%
$4,187,440
Cap Rate 7%
$2,991,029
Cap Rate 9%
$2,326,356
Alternative Uses
Best Use
Apartment 5plus
$2.99M
$2.62M – $3.49M
NOI $209,372 @ 7.0% cap · market cap 4.87%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$7.32M
$6.40M – $8.54M
NOI $512,132 @ 7.0% cap · market cap 11.91%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
558
Businesses Nearby
Explore this area
Business Placement
Demographics for 50014, IA
31,587
Population
14,860
Households
2.1
Avg Household Size
26
Median Age
69%
College-Educated
98%
High-School Grad
54.2 sq mi
ZIP Area
583
Density / Sq Mi
$57,372
Median Household Income
$20,952
Median Earnings
$1,083
Median Rent
$312,700
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 - 47-unit student housing portfolio near Iowa State University.
Where is this apartment building located?
The property is located at 519 Welch Avenue Ames, IA.
What is the asking price?
The asking price for this property is $4,300,000.
What are key features of this property?
This property features: 47‑unit student housing portfolio near Iowa State University; 100% occupancy history with early preleasing; A+ locations near Iowa State University, employment, retail, and transit
