NNN-Leased Restaurant
For Sale
$2,145,000
1500 W 18th St S, Newton, IA 50208
Commercial, Newton, IA
Property Size4,968 SF
Lot Size1.20 Acres
Price / SF$431.76
Days on Market147
Property Features for 1500 W 18th St S
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
Comm
Directions
From I-80 Take Exit 164 Toward US-6 E, Turn on US-6 E , Turn Right onto S 12th Ave W, Turn Right onto W 18th St S
Subdivision
OT-W (West of I-380)
Standard status
Active
APN
13.04.101.005
Size
4,968 SF
Lot size
1.20 Acres
Taxes and HOA fees
Tax Description
ANDERSON HURST LOT 1
Tax Annual Amount
26060
Legal Description
ANDERSON HURST LOT 1
Building Details
Year built
2007
Building materials
Frame
Listing Agency:
Pinnacle Realty LLC
(319) 393-0900
Listed By:
Trev Adair · License #322502720
(319) 350-9476
Added: Mar 27
Changed: Aug 19
Last Checked: Aug 20 at 8:06AM
MLS# 2602108
Copyright © 2026 Cedar Rapids Area Association of REALTORS®. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 4,968-square-foot restaurant property at 1500 W 18th St S in Newton, Iowa, was built in 2007 and is occupied by Pizza Ranch. The 1.2-acre site carries Comm zoning and includes a frame-constructed building. The property is subject to an absolute NNN lease that commenced May 1, 2023, with a 15-year term and annual rent increases of approximately 2%.
Under the lease structure, the tenant is responsible for taxes, insurance, CAM, repairs, the roof, the structure, HVAC, and major systems. The property is located in Jasper County and is identified by postal code 50208.
Under the lease structure, the tenant is responsible for taxes, insurance, CAM, repairs, the roof, the structure, HVAC, and major systems. The property is located in Jasper County and is identified by postal code 50208.
Key Highlights
- Absolute NNN lease commenced May 1, 2023
- 15‑year lease term with approximately 2% annual rent increases
- 4,968‑square‑foot restaurant building on 1.2 acres
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
$72,925
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
3.40%
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%
$1,458,500
$1.5M
Cap Rate 7%
$1,041,786
$1.0M
Cap Rate 9%
$810,278
$810.3K
Market Conditions
NOI Build-Up for 4,968 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
$104.3K $21.00/SF
− Vacancy
−$7.1K −$1.43/SF
EGI
$97.2K $19.57/SF
− OpEx
−$24.3K −$4.89/SF
NOI
$72.9K $14.68/SF
Area
Jasper County, IA
Vacancy
6.80%
Lease Rate
$21.00 /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%
$1,458,500
Cap Rate 7%
$1,041,786
Cap Rate 9%
$810,278
Alternative Uses
Best Use
Specialty Retail
$1.04M
$911.6K – $1.22M
NOI $72,925 @ 7.0% cap · market cap 3.40%
Second Best
—
—
no second resolved use
Theoretical Best
Flex RnD
$4.78M
$4.18M – $5.58M
NOI $334,764 @ 7.0% cap · market cap 15.61%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
87
Businesses Nearby
Explore this area
Business Placement
Demographics for 50208, IA
20,918
Population
8,919
Households
2.3
Avg Household Size
42
Median Age
17%
College-Educated
91%
High-School Grad
158.5 sq mi
ZIP Area
132
Density / Sq Mi
$61,064
Median Household Income
$37,490
Median Earnings
$830
Median Rent
$161,900
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
NNN property - Pizza Ranch occupies the building under an absolute NNN lease with annual rent increases of approximately 2%.
Where is this nnn property located?
The property is located at 1500 W 18th St S Newton, IA.
What is the asking price?
The asking price for this property is $2,145,000.
What are key features of this property?
This property features: Absolute NNN lease commenced May 1, 2023; 15‑year lease term with approximately 2% annual rent increases; 4,968‑square‑foot restaurant building on 1.2 acres
