Mixed-Use Restaurant With
For Sale
$200,000
1850 Easton Boulevard, Des Moines, IA 50316
Restaurant space with food-service equipment and an upstairs residence supported by a current rental certificate.
Property Size1,168 SF
Price / SF$171.23
Days on Market704
Property Features for 1850 Easton Boulevard
General Information
Standard status
Active
Size
1,168 SF
Property subtype
General Commercial
Taxes and HOA fees
Annual Taxes
$1,202
Amenities
3
EXMUD
Building Details
Year Built
1907
Listing Agency:
Keller Williams Realty GDM
(319) 331-5542
Listed By:
Emmanuel Toribio
(319) 331-5542
Source:
Xome
Added: Sep 26, 2024
Changed: Aug 30
Last Checked: Aug 30 at 8:01AM
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 Keller Williams Realty GDM
Investment Insights
Based on property information with market context.
This mixed-use property combines a restaurant operation with an upstairs apartment in a 1,168-square-foot building constructed in 1907. The commercial space includes a grease trap, commercial stove, and refrigerator. Above it, the residential component offers two bedrooms and one bathroom, along with a current rental certificate.
The property is on Des Moines' east side with immediate access to I-235. Its configuration places business and residential functions within the same building, providing a restaurant component alongside a separately usable living area.
The property is on Des Moines' east side with immediate access to I-235. Its configuration places business and residential functions within the same building, providing a restaurant component alongside a separately usable living area.
Key Highlights
- Mixed‑use building with restaurant and upstairs apartment
- 1,168‑square‑foot building constructed in 1907
- Restaurant includes grease trap, commercial stove, and refrigerator
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
$13,834
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
6.92%
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%
$276,680
$276.7K
Cap Rate 7%
$197,629
$197.6K
Cap Rate 9%
$153,711
$153.7K
Market Conditions
NOI Build-Up for 1,168 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
$19.6K $16.80/SF
− Vacancy
−$1.2K −$1.01/SF
EGI
$18.4K $15.79/SF
− OpEx
−$4.6K −$3.95/SF
NOI
$13.8K $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%
$276,680
Cap Rate 7%
$197,629
Cap Rate 9%
$153,711
Alternative Uses
Best Use
Specialty Retail
$197.6K
$172.9K – $230.6K
NOI $13,834 @ 7.0% cap · market cap 6.92%
Second Best
Mixed Use
$170.8K
$149.5K – $199.3K
NOI $11,957 @ 7.0% cap · market cap 5.98%
Theoretical Best
Office A
$287.7K
$251.7K – $335.6K
NOI $20,136 @ 7.0% cap · market cap 10.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
331
Businesses Nearby
Explore this area
Business Placement
Demographics for 50316, IA
16,785
Population
6,002
Households
2.8
Avg Household Size
33
Median Age
13%
College-Educated
78%
High-School Grad
3.6 sq mi
ZIP Area
4,663
Density / Sq Mi
$53,090
Median Household Income
$33,994
Median Earnings
$963
Median Rent
$137,300
Median Home Value
Market
Vacancy Rate% for Retail in Des Moines, IA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Restaurant space with food-service equipment and an upstairs residence supported by a current rental certificate.
Where is this mixed-use property located?
The property is located at 1850 Easton Boulevard Des Moines, IA.
What is the asking price?
The asking price for this property is $200,000.
What are key features of this property?
This property features: Mixed‑use building with restaurant and upstairs apartment; 1,168‑square‑foot building constructed in 1907; Restaurant includes grease trap, commercial stove, and refrigerator
