Top-Floor Office Condo
For Sale
$2,400,000
327 2nd St., Coralville, IA 52241
Top-floor commercial condo with elevator access and parking, currently leased to two long-term tenants.
Property Size14,440 SF
Price / SF$166.20
Days on Market24
Property Features for 327 2nd St.
General Information
Standard status
Active
Size
14,440 SF
Amenities
parking
elevator access
Building Details
Year Built
2004
Tenancy
Multi
Listing Agency:
Lepic-Kroeger, REALTORS
(319) 594-7926
Listed By:
Ryan O'Leary · License #S41249
Source:
Kwlegacyrealty
Added: Jul 20
Changed: Jul 21
Last Checked: Aug 11 at 10:14AM
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 top-floor commercial condo is offered as a turnkey investment with two existing tenants and long-term returns. The property is configured as office space within a multi-tenant building and includes elevator access for convenient use.
The building is located on the Coralville Strip, just minutes from UIHC, IRL, Coral Ridge Mall, and the University of Iowa campus. On-site parking is available, supporting tenant and visitor access.
For sale as a commercial condo with established tenancy, the offering includes reported annual gross revenue of $317,000 and NOI of $172,000.
The building is located on the Coralville Strip, just minutes from UIHC, IRL, Coral Ridge Mall, and the University of Iowa campus. On-site parking is available, supporting tenant and visitor access.
For sale as a commercial condo with established tenancy, the offering includes reported annual gross revenue of $317,000 and NOI of $172,000.
Key Highlights
- Top‑floor commercial condo built in 2004
- Currently leased to two long‑term tenants
- Annual gross revenue of $317,000 and NOI of $172,000
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
$165,699
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
6.90%
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%
$3,313,980
$3.3M
Cap Rate 7%
$2,367,129
$2.4M
Cap Rate 9%
$1,841,100
$1.8M
Market Conditions
NOI Build-Up for 14,440 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
$259.9K $18.00/SF
− Vacancy
−$39.0K −$2.70/SF
EGI
$220.9K $15.30/SF
− OpEx
−$55.2K −$3.82/SF
NOI
$165.7K $11.48/SF
Area
Johnson County, IA
Vacancy
15.00%
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%
$3,313,980
Cap Rate 7%
$2,367,129
Cap Rate 9%
$1,841,100
Alternative Uses
Best Use
Office B
$2.37M
$2.07M – $2.76M
NOI $165,699 @ 7.0% cap · market cap 6.90%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.14M
$2.74M – $3.66M
NOI $219,580 @ 7.0% cap · market cap 9.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
852
Businesses Nearby
Explore this area
Business Placement
Demographics for 52241, IA
22,319
Population
10,294
Households
2.2
Avg Household Size
34
Median Age
57%
College-Educated
95%
High-School Grad
13.5 sq mi
ZIP Area
1,653
Density / Sq Mi
$66,508
Median Household Income
$40,504
Median Earnings
$1,021
Median Rent
$286,000
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 - Top-floor commercial condo with elevator access and parking, currently leased to two long-term tenants.
Where is this office units located?
The property is located at 327 2nd St. Coralville, IA.
What is the asking price?
The asking price for this property is $2,400,000.
What are key features of this property?
This property features: Top‑floor commercial condo built in 2004; Currently leased to two long‑term tenants; Annual gross revenue of $317,000 and NOI of $172,000
