Drive-Through Restaurant with Kitchen
For Sale
$699,990
5405 Douglas Ave, Des Moines, IA 50310
Existing food-service improvements support restaurant, coffee, or specialty retail use along the Douglas Avenue corridor.
Property Size2,354 SF
Price / SF$297.36
Days on Market26
Property Features for 5405 Douglas Ave
General Information
Standard status
Active
Size
2,354 SF
Site & Location
Drive-Thru
Yes
Traffic Count
12,600 vehicles/day
Road Access
Yes
Restaurant
Commercial Hood
Yes
Grease Trap
Yes
Equipment Included
Yes
Building Details
Year Built
1975
Listing Agency:
RE/MAX Precision
Listed By:
Michael TenHaken
Source:
Dsmsold
Added: Aug 4
Changed: Aug 28
Last Checked: Aug 29 at 12:04PM
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 RE/MAX Precision
Investment Insights
Based on property information with market context.
The property includes a 2354-square-foot structure built in 1975 with a drive-through and newer grease traps. Stainless-steel preparation tables, hoods, appliances, and a cooler are included, providing an existing food-service infrastructure for a restaurant or coffee concept. The building may also accommodate specialty retail use.
Positioned on Douglas Avenue, the property benefits from reported traffic of 12,600 cars daily and sits just blocks from Merle Hay Mall. It is also near a planned 3500-seat multi-use arena associated with Drake Hockey and the Iowa Demon Hawks. The surrounding Merle Hay Mall redevelopment is identified as a major regional entertainment project, adding a significant new destination to the nearby context.
Positioned on Douglas Avenue, the property benefits from reported traffic of 12,600 cars daily and sits just blocks from Merle Hay Mall. It is also near a planned 3500-seat multi-use arena associated with Drake Hockey and the Iowa Demon Hawks. The surrounding Merle Hay Mall redevelopment is identified as a major regional entertainment project, adding a significant new destination to the nearby context.
Key Highlights
- 2354 ft structure built in 1975
- Drive‑thru and newer grease traps
- Stainless prep tables, hoods, appliances, and cooler remain
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
$27,881
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
3.98%
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%
$557,620
$557.6K
Cap Rate 7%
$398,300
$398.3K
Cap Rate 9%
$309,789
$309.8K
Market Conditions
NOI Build-Up for 2,354 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
$39.5K $16.80/SF
− Vacancy
−$2.4K −$1.01/SF
EGI
$37.2K $15.79/SF
− OpEx
−$9.3K −$3.95/SF
NOI
$27.9K $11.84/SF
Area
Des Moines, IA
Vacancy
6.00%
Lease Rate
$16.80 /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%
$557,620
Cap Rate 7%
$398,300
Cap Rate 9%
$309,789
Alternative Uses
Best Use
Specialty Retail
$398.3K
$348.5K – $464.7K
NOI $27,881 @ 7.0% cap · market cap 3.98%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$579.7K
$507.3K – $676.4K
NOI $40,582 @ 7.0% cap · market cap 5.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
12,600 VPD
Traffic count
Yes
Paved road access
Yes
Commercial hood
Yes
Grease trap
Location Intelligence
Trade Area within ½ mile
939
Businesses Nearby
Explore this area
Business Placement
Demographics for 50310, IA
30,754
Population
14,162
Households
2.2
Avg Household Size
37
Median Age
36%
College-Educated
86%
High-School Grad
8.0 sq mi
ZIP Area
3,844
Density / Sq Mi
$74,473
Median Household Income
$46,091
Median Earnings
$1,043
Median Rent
$213,800
Median Home Value
Market
Vacancy Rate% for Retail in Des Moines, IA
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Drive through restaurant - Existing food-service improvements support restaurant, coffee, or specialty retail use along the Douglas Avenue corridor.
Where is this drive through restaurant located?
The property is located at 5405 Douglas Ave Des Moines, IA.
What is the asking price?
The asking price for this property is $699,990.
What are key features of this property?
This property features: 2354 ft structure built in 1975; Drive‑thru and newer grease traps; Stainless prep tables, hoods, appliances, and cooler remain
