KFC Drive-Through NNN
For Sale
$1,000,000
1925 7th Avenue, Marion, IA 52302
Absolute net lease investment with scheduled 5% increases and a renovated restaurant building.
Property Size2,808 SF
Days on Market165
Property Features for 1925 7th Avenue
General Information
Standard status
Active
Size
2,808 SF
Property subtype
Retail
Site & Location
Drive-Thru
Yes
Traffic Count
15,000 vehicles/day
Building Details
Building Size
2,808 SF
Year Built
1975
Year Renovated
2022
Listed By:
Heath D. Bullock, CCIM, SIOR
(515) 554-7412
Source:
Svncreate
Added: Apr 1
Changed: Sep 10
Last Checked: Sep 11 at 6:41AM
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 Heath D. Bullock, CCIM, SIOR
Investment Insights
Based on property information with market context.
KFC is an established quick-service restaurant property at a hard corner in Marion, Iowa. The building was renovated in 2022 and includes a drive-through operation, exterior improvements, and new signage. The property is structured under an absolute net lease, with rent scheduled to increase 5% every five years, including the five-year renewal options. Lease obligations are guaranteed by a 340-unit operator.
The site fronts the primary connection between Marion and Cedar Rapids and records more than 15,000 VPD. It is positioned within an MSA of more than 250,000 residents. The property address is 1925 7th Avenue, Marion, IA 52302.
The site fronts the primary connection between Marion and Cedar Rapids and records more than 15,000 VPD. It is positioned within an MSA of more than 250,000 residents. The property address is 1925 7th Avenue, Marion, IA 52302.
Key Highlights
- KFC‑branded drive‑through restaurant at a hard corner
- Absolute net lease structure with 5% increases every five years
- Building renovation completed 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
$28,449
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
2.84%
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%
$568,980
$569.0K
Cap Rate 7%
$406,414
$406.4K
Cap Rate 9%
$316,100
$316.1K
Market Conditions
NOI Build-Up for 2,808 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
$41.1K $14.64/SF
− Vacancy
−$3.2K −$1.13/SF
EGI
$37.9K $13.51/SF
− OpEx
−$9.5K −$3.38/SF
NOI
$28.4K $10.13/SF
Area
Linn County, IA
Vacancy
7.73%
Lease Rate
$14.64 /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%
$568,980
Cap Rate 7%
$406,414
Cap Rate 9%
$316,100
Alternative Uses
Best Use
Specialty Retail
$406.4K
$355.6K – $474.2K
NOI $28,449 @ 7.0% cap · market cap 2.84%
Second Best
—
—
no second resolved use
Theoretical Best
Self Storage
$472.6K
$413.5K – $551.4K
NOI $33,081 @ 7.0% cap · market cap 3.31%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
15,000 VPD
Traffic count
Location Intelligence
Trade Area within ½ mile
679
Businesses Nearby
Explore this area
Business Placement
Demographics for 52302, IA
43,130
Population
18,153
Households
2.4
Avg Household Size
39
Median Age
39%
College-Educated
97%
High-School Grad
74.3 sq mi
ZIP Area
580
Density / Sq Mi
$87,463
Median Household Income
$50,234
Median Earnings
$963
Median Rent
$232,900
Median Home Value
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Market
Vacancy Rate% for Retail in Midwest region
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Frequently Asked Questions
What type of property is this?
NNN property - Absolute net lease investment with scheduled 5% increases and a renovated restaurant building.
Where is this nnn property located?
The property is located at 1925 7th Avenue Marion, IA.
What is the asking price?
The asking price for this property is $1,000,000.
What are key features of this property?
This property features: KFC‑branded drive‑through restaurant at a hard corner; Absolute net lease structure with 5% increases every five years; Building renovation completed in 2022
