8-Unit Apartment
For Sale
$630,000
4004 University Avenue, Des Moines, IA 50311
Seven two-bedroom residences and one one-bedroom residence provide a varied unit mix near education, shopping, and transit.
Property Size5,716 SF
Days on Market109
Property Features for 4004 University Avenue
General Information
Standard status
Active
Size
5,716 SF
Property subtype
Multifamily
Building Details
Building Size
5,716 SF
Year Built
1979
Listing Agency:
NAI Iowa Realty Commercial - Des Moines
(319) 331-3191
Listed By:
Chris Fultz · License #B56244000
(319) 331-3191
Source:
Naiglobal
Added: May 14
Changed: Aug 29
Last Checked: Aug 29 at 2:35PM
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 NAI Iowa Realty Commercial - Des Moines
Investment Insights
Based on property information with market context.
This 1979 apartment property contains eight residential units, including seven two-bedroom apartments and one one-bedroom apartment. The unit mix offers both larger and smaller floor plans within a single multifamily asset.
The property is located at 4004 University Avenue in Des Moines, near Drake University, Roosevelt High School, a Hy-Vee grocery store, restaurants, and public transportation. The source information also identifies the property within the NX2 Neighborhood Mix District.
The property is located at 4004 University Avenue in Des Moines, near Drake University, Roosevelt High School, a Hy-Vee grocery store, restaurants, and public transportation. The source information also identifies the property within the NX2 Neighborhood Mix District.
Key Highlights
- Eight‑unit apartment property built in 1979
- Unit mix includes 7 two‑bedroom units and 1 one‑bedroom unit
- Located at 4004 University Avenue in Des Moines, IA 50311
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
$47,641
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
7.56%
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%
$952,820
$952.8K
Cap Rate 7%
$680,586
$680.6K
Cap Rate 9%
$529,344
$529.3K
Market Conditions
NOI Build-Up for 5,716 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
$89.9K $15.72/SF
− Vacancy
−$3.2K −$0.57/SF
EGI
$86.6K $15.15/SF
− OpEx
−$39.0K −$6.82/SF
NOI
$47.6K $8.33/SF
Area
Des Moines, IA
Vacancy
3.60%
Lease Rate
$15.72 /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%
$952,820
Cap Rate 7%
$680,586
Cap Rate 9%
$529,344
Alternative Uses
Best Use
Apartment 5plus
$680.6K
$595.5K – $794.0K
NOI $47,641 @ 7.0% cap · market cap 7.56%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.41M
$1.23M – $1.64M
NOI $98,542 @ 7.0% cap · market cap 15.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
555
Businesses Nearby
Explore this area
Business Placement
Demographics for 50311, IA
14,782
Population
7,180
Households
2.1
Avg Household Size
30
Median Age
41%
College-Educated
94%
High-School Grad
2.6 sq mi
ZIP Area
5,685
Density / Sq Mi
$63,233
Median Household Income
$35,086
Median Earnings
$1,019
Median Rent
$228,000
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 - Seven two-bedroom residences and one one-bedroom residence provide a varied unit mix near education, shopping, and transit.
Where is this apartment building located?
The property is located at 4004 University Avenue Des Moines, IA.
What is the asking price?
The asking price for this property is $630,000.
What are key features of this property?
This property features: Eight‑unit apartment property built in 1979; Unit mix includes 7 two‑bedroom units and 1 one‑bedroom unit; Located at 4004 University Avenue in Des Moines, IA 50311
