Remodeled Penthouse Office
For Sale
$350,000
425 2ND Street SE Unit 1250, Cedar Rapids, IA 52401
Six private offices, reception, conference space, skywalk access, and high-speed fiber support a professional workspace.
Property Size3,430 SF
Price / SF$102.04
Days on Market486
Property Features for 425 2ND Street SE Unit 1250
General Information
Standard status
Active
Size
3,430 SF
Total Parking Spaces
8
Property subtype
Commercial
Lease Term
[]
Additional Details
Floor
Penthouse
Office Units
1
Amenities
skywalk
high speed fiber
Building Details
Year Built
1982
Buildings
1
Listing Agency:
SKOGMAN REALTY COMMERCIAL
Listed By:
Tiffany Earl Williams-WSG CRE
(319) 364-8121
Source:
Cbhrealty
Added: May 3, 2025
Changed: Aug 31
Last Checked: Aug 31 at 1:40AM
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 SKOGMAN REALTY COMMERCIAL
Investment Insights
Based on property information with market context.
Located on the top floor of Plaza 425, this remodeled office suite measures 3,430 SF and is arranged with six private offices, conference room space, and a reception area. The suite provides a defined professional setting within a larger office property originally built in 1982.
Plaza 425 connects directly to the skywalk and city parkade, providing integrated access between the building and nearby parking facilities. High-speed fiber service is available within the building. The seller controls 8 parking spots, which may be transferred to the buyer with the property.
The combination of private offices, shared meeting space, reception, building connectivity, and dedicated parking creates a practical configuration for an owner-user office operation.
Plaza 425 connects directly to the skywalk and city parkade, providing integrated access between the building and nearby parking facilities. High-speed fiber service is available within the building. The seller controls 8 parking spots, which may be transferred to the buyer with the property.
The combination of private offices, shared meeting space, reception, building connectivity, and dedicated parking creates a practical configuration for an owner-user office operation.
Key Highlights
- 3,430 SF remodeled penthouse office suite
- Six private offices plus conference room space and reception
- Top‑floor suite in Plaza 425
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
$16,473
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
4.71%
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%
$329,460
$329.5K
Cap Rate 7%
$235,329
$235.3K
Cap Rate 9%
$183,033
$183.0K
Market Conditions
NOI Build-Up for 3,430 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
$28.8K $8.40/SF
− Vacancy
−$6.8K −$2.00/SF
EGI
$22.0K $6.40/SF
− OpEx
−$5.5K −$1.60/SF
NOI
$16.5K $4.80/SF
Area
Cedar Rapids, IA
Vacancy
23.77%
Lease Rate
$8.40 /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%
$329,460
Cap Rate 7%
$235,329
Cap Rate 9%
$183,033
Alternative Uses
Best Use
Office B
$235.3K
$205.9K – $274.6K
NOI $16,473 @ 7.0% cap · market cap 4.71%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$496.4K
$434.4K – $579.2K
NOI $34,750 @ 7.0% cap · market cap 9.93%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
1
Office units
Location Intelligence
Trade Area within ½ mile
3,465
Businesses Nearby
Explore this area
Business Placement
Demographics for 52401, IA
2,320
Population
1,480
Households
1.6
Avg Household Size
35
Median Age
35%
College-Educated
89%
High-School Grad
1.2 sq mi
ZIP Area
1,933
Density / Sq Mi
$40,675
Median Household Income
$38,635
Median Earnings
$783
Median Rent
$143,800
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Six private offices, reception, conference space, skywalk access, and high-speed fiber support a professional workspace.
Where is this office units located?
The property is located at 425 2ND Street SE Unit 1250 Cedar Rapids, IA.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: 3,430 SF remodeled penthouse office suite; Six private offices plus conference room space and reception; Top‑floor suite in Plaza 425
