Multi-Building Main Street
For Sale
$330,000
131 3RD Street, Underwood, IA 51576
COMMERCIAL - UNDERWOOD, IA
Property Size2,268 SF
Price / SF$145.50
Days on Market149
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
Flat, Metal
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: Aug 4
Last Checked: Aug 23 at 2:06PM
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 for-sale property consists of three separate buildings, offering flexibility to accommodate up to four individual business spaces. The layout is designed for multiple tenants or a mix of use, with the flexibility to support retail, office, or service-based operations.
Located on Main Street in Underwood, Iowa, the property benefits from visibility and exposure in a well-established small-town business setting.
With multiple buildings and the capacity for several business spaces, this offering can fit owner-occupants or investors looking for a versatile commercial setup along Main Street.
Located on Main Street in Underwood, Iowa, the property benefits from visibility and exposure in a well-established small-town business setting.
With multiple buildings and the capacity for several business spaces, this offering can fit owner-occupants or investors looking for a versatile commercial setup along Main Street.
Key Highlights
- Commercial property on Main Street in Underwood, Iowa, with three separate buildings for up to four business spaces
- Up to four individual business spaces offer flexibility for multiple uses or income opportunities
- Cooling provided via ductless system
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
$22,502
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
6.82%
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%
$450,040
$450.0K
Cap Rate 7%
$321,457
$321.5K
Cap Rate 9%
$250,022
$250.0K
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
−$9.6K −$4.25/SF
NOI
$22.5K $9.92/SF
Area
Pottawattamie County, IA
Vacancy
8.44%
Lease Rate
$15.48 /SF/Yr
Expense Ratio
30.00%
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%
$450,040
Cap Rate 7%
$321,457
Cap Rate 9%
$250,022
Alternative Uses
Best Use
Retail
$321.5K
$281.3K – $375.0K
NOI $22,502 @ 7.0% cap · market cap 6.82%
Second Best
Office B
$302.0K
$264.3K – $352.3K
NOI $21,140 @ 7.0% cap · market cap 6.41%
Theoretical Best
Office A
$433.1K
$379.0K – $505.3K
NOI $30,320 @ 7.0% cap · market cap 9.19%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
52
Businesses Nearby
Well-served
Demand for This Use
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
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Three separate buildings on Main Street offer up to four business space configurations for retail, office, or service use.
Where is this storefront property located?
The property is located at 131 3RD Street Underwood, IA.
What is the asking price?
The asking price for this property is $330,000.
What are key features of this property?
This property features: Commercial property on Main Street in Underwood, Iowa, with three separate buildings for up to four business spaces; Up to four individual business spaces offer flexibility for multiple uses or income opportunities; Cooling provided via ductless system
