Building Details

Year Built 2010

Stories 1

Tenancy Single

Listing Agency: Lepic-Kroeger, REALTORS t***@pinnaclerealtyia.com Show Phone

Listed By: Tatiana McClinton Show Phone

Source: Pinnaclerealtyia

Added: Nov 4, 2025 Changed: Aug 28 Last Checked: Aug 29 at 6:51AM

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Investment Insights

Based on property information with market context.

This sale-leaseback features a well-established veterinary clinic tenant in a commercial condominium structure. The owner will sign a 3-year lease at $13.95/SF NNN. Under the lease terms provided, the owner covers HOA fees and property taxes. HOA fees include insurance, trash, lawn care, and snow removal.

Recent property updates include a new roof installed in 2025 with a 30-year warranty, with new siding scheduled for completion in the spring of 2026. The property is located in Fairfax, an established bedroom community near Cedar Rapids, with approximately an 8-minute drive to I-380 for access to the metro area.

For investors seeking a medical-use specialty asset with an in-place tenant and defined lease structure, this offering provides a straightforward NNN framework and ongoing common-area responsibility handled through the condominium HOA. The near-term exterior improvements and the specified HOA coverage items can also help reduce day-to-day operating variables for the landlord relative to properties without a condominium association.

Key Highlights

• Single‑story commercial property built in 2010 with HVAC and heating (interior concrete flooring).
• 3‑year sale‑leaseback with established veterinary clinic tenant on $13.95/SF NNN lease terms.
• Owner covers HOA fees and property taxes under the lease structure.

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

$15,148

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

3.37%

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%

$302,960 $303.0K

Cap Rate 7%

$216,400 $216.4K

Cap Rate 9%

$168,311 $168.3K

Market Conditions

NOI Build-Up for 3,055 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

$32.3K $10.56/SF

− Vacancy

−$7.0K −$2.30/SF

EGI

$25.2K $8.26/SF

− OpEx

−$10.1K −$3.31/SF

NOI

$15.1K $4.96/SF

Area

Linn County, IA

Vacancy

21.74%

Lease Rate

$10.56 /SF/Yr

Expense Ratio

40.00%

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%

$302,960

Cap Rate 7%

$216,400

Cap Rate 9%

$168,311

Alternative Uses

Best Use

Healthcare Medical

$216.4K

$189.4K – $252.5K (±1% cap)

NOI $15,148 @ 7.0% cap · market cap 3.37%

Second Best

Office B

$208.4K

$182.4K – $243.2K (±1% cap)

NOI $14,589 @ 7.0% cap · market cap 3.24%

Theoretical Best

Self Storage

$514.2K

$449.9K – $599.9K (±1% cap)

NOI $35,991 @ 7.0% cap · market cap 8.00%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Heartland Animal Hospital ... Veterinary Clinic

Suggested Use

Top Pick Real Estate Agency Plumbing Service Pharmacy (Bike/Boat/Book/etc) Store Restaurant Bakery

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Single-tenant

Tenancy

Location Intelligence

Trade Area within ½ mile

99

Businesses Nearby

Explore this area Business Placement

Demographics for 52228, IA

3,402

Population

1,470

Households

2.3

Avg Household Size

42

Median Age

42%

College-Educated

96%

High-School Grad

37.2 sq mi

ZIP Area

91

Density / Sq Mi

$121,366

Median Household Income

$56,023

Median Earnings

$1,194

Median Rent

$301,600

Median Home Value

Market

Vacancy Rate% for Office in Midwest region

13.7% 2019

15.6% 2020

17.1% 2021

18.9% 2022

21% 2023

22% 2024

21.3% 2025

Questions? Ask Rey

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What type of property is this? Where is this nnn properties located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

NNN property - For-sale investment with a 3-year lease to a veterinary tenant on NNN terms, with HOA fees and property taxes covered by the owner.

Where is this nnn property located?

The property is located at 135 80th Street 1 Fairfax, IA.

What is the asking price?

The asking price for this property is $450,000.

What are key features of this property?

This property features: Single‑story commercial property built in 2010 with HVAC and heating (interior concrete flooring).; 3‑year sale‑leaseback with established veterinary clinic tenant on $13.95/SF NNN lease terms.; Owner covers HOA fees and property taxes under the lease structure.