Mixed-Use Property with Event
For Sale
$320,000
131 3RD Street, Underwood, IA 51576
Commercial Sale, UNDERWOOD, IA
Property Size2,268 SF
Price / SF$141.09
Days on Market185
Property Features for 131 3RD Street
General Information
Property type
Commercial Sale
Property subtype
Other
Directions
Railroad Highway to Underwood. Right on 3rd St . Follow to property.
Subdivision
14A
Standard status
Active
APN
764216253013
Size
2,268 SF
Taxes and HOA fees
Tax Description
UNDERWOOD TOWN-ORIG PLAT LTS 8 & 9 BLK 8
Legal Description
UNDERWOOD TOWN-ORIG PLAT LTS 8 & 9 BLK 8
Utilities
Cooling system
Ductless
Building Details
Year built
2022
Roof type
Metal, Flat
Listing Agency:
Better Homes and Gardens Real Estate The Good Life Group
(402) 932-5989
Listed By:
Shelly Jager · License #S44357000
(402) 659-7909
Added: Mar 28
Changed: Sep 18
Last Checked: Sep 28 at 1:06AM
MLS# 26-553
Copyright © 2026 Southwest Iowa Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This mixed-use commercial property contains 2,268 square feet across three rental spaces: Louie's Coffee House, Mama Dot's Sweets and Bakery, and The Greenhouse Event Space. The coffee house and bakery buildings were constructed in 2022, while the event operation occupies a distinctive silo built in 2025. The venue accommodates up to 88 people.
Tenants pay all utilities except trash, and the property features ductless cooling with metal and flat roofing. Its component uses include food service, bakery operations, and event space, creating a varied commercial configuration within one property.
Tenants pay all utilities except trash, and the property features ductless cooling with metal and flat roofing. Its component uses include food service, bakery operations, and event space, creating a varied commercial configuration within one property.
Key Highlights
- 2,268‑square‑foot mixed‑use commercial property
- Three rental spaces: Louie's Coffee House, Mama Dot's Sweets and Bakery, and The Greenhouse Event Space
- Coffee house and bakery buildings constructed in 2022
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
$24,109
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
7.53%
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%
$482,180
$482.2K
Cap Rate 7%
$344,414
$344.4K
Cap Rate 9%
$267,878
$267.9K
Market Conditions
NOI Build-Up for 2,268 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
$35.1K $15.48/SF
− Vacancy
−$3.0K −$1.31/SF
EGI
$32.1K $14.17/SF
− OpEx
−$8.0K −$3.54/SF
NOI
$24.1K $10.63/SF
Area
Pottawattamie County, IA
Vacancy
8.44%
Lease Rate
$15.48 /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%
$482,180
Cap Rate 7%
$344,414
Cap Rate 9%
$267,878
Alternative Uses
Best Use
Specialty Retail
$344.4K
$301.4K – $401.8K
NOI $24,109 @ 7.0% cap · market cap 7.53%
Second Best
Mixed Use
$320.8K
$280.7K – $374.2K
NOI $22,453 @ 7.0% cap · market cap 7.02%
Theoretical Best
Office A
$433.1K
$379.0K – $505.3K
NOI $30,320 @ 7.0% cap · market cap 9.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
52
Businesses Nearby
Explore this area
Business Placement
Demographics for 51576, IA
2,058
Population
751
Households
2.7
Avg Household Size
40
Median Age
32%
College-Educated
97%
High-School Grad
46.3 sq mi
ZIP Area
44
Density / Sq Mi
$107,679
Median Household Income
$47,314
Median Earnings
$819
Median Rent
$291,500
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Midwest region
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Three rental spaces combine coffee, bakery, and event uses.
Where is this mixed-use property located?
The property is located at 131 3RD Street Underwood, IA.
What is the asking price?
The asking price for this property is $320,000.
What are key features of this property?
This property features: 2,268‑square‑foot mixed‑use commercial property; Three rental spaces: Louie's Coffee House, Mama Dot's Sweets and Bakery, and The Greenhouse Event Space; Coffee house and bakery buildings constructed in 2022
