Freestanding Pizza Ranch Investment
For Sale
Contact for pricing
1617 S Monroe Ave, Mason City, IA 50401
Long-term investment with zero landlord responsibilities in Mason City, Iowa.
Property Size5,729 SF
Price / SF$288.68
Days on Market188
Property Features for 1617 S Monroe Ave
General Information
Standard status
Active
Size
5,729 SF
Property subtype
Retail
Lease Type
Absolute Net
Investment Type
Net Lease
Net Operating Income
$108,199
Building Details
Year Built
1973
Year Renovated
2021
Units
1
Tenancy
Single
Listing Agency:
Hansen Real Estate
Listed By:
Jordan Kleinschmidt · License #66702000
Source:
Crexi
Added: Feb 13
Changed: Aug 8
Last Checked: Jul 16 at 6:30AM
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 Hansen Real Estate
Investment Insights
Based on property information with market context.
This freestanding Pizza Ranch property, located in Mason City, Iowa, is available for sale. The property is currently operating under a true triple-net lease, offering a long-term investment opportunity with approximately 18 years remaining on the lease term. The building includes a Fun Zone arcade. The property generates a current annual net operating income (NOI) of $108,199, with contractual 3% annual increases. The 10-year average NOI is projected to be $124,038. The property is operated by experienced Pizza Ranch franchisees with over 20 years in the system. The building size is 5729 square feet. The property is located in a thriving community with a population of over 26,000 residents. The property is suitable for conventional restaurants, restaurants, retail space, retail properties and spaces, and commercial real estate.
Key Highlights
- True triple‑net lease offers zero landlord responsibilities.
- 18 years remaining on the current lease term.
- Current annual NOI of $108,199 with contractual 3% annual increases.
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
$59,617
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
3.60%
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%
$1,192,340
$1.2M
Cap Rate 7%
$851,671
$851.7K
Cap Rate 9%
$662,411
$662.4K
Market Conditions
NOI Build-Up for 5,729 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
$85.9K $15.00/SF
− Vacancy
−$6.4K −$1.13/SF
EGI
$79.5K $13.88/SF
− OpEx
−$19.9K −$3.47/SF
NOI
$59.6K $10.41/SF
Area
Cerro Gordo County, IA
Vacancy
7.50%
Lease Rate
$15.00 /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%
$1,192,340
Cap Rate 7%
$851,671
Cap Rate 9%
$662,411
Alternative Uses
Best Use
Specialty Retail
$851.7K
$745.2K – $993.6K
NOI $59,617 @ 7.0% cap · market cap 3.60%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.44M
$1.26M – $1.68M
NOI $100,669 @ 7.0% cap · market cap 6.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
329
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 50401, IA
28,981
Population
14,746
Households
2
Avg Household Size
43
Median Age
22%
College-Educated
94%
High-School Grad
148.2 sq mi
ZIP Area
196
Density / Sq Mi
$63,807
Median Household Income
$38,929
Median Earnings
$868
Median Rent
$134,100
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?
Conventional restaurant - Long-term investment with zero landlord responsibilities in Mason City, Iowa.
Where is this conventional restaurant located?
The property is located at 1617 S Monroe Ave Mason City, IA.
What is the asking price?
The asking price for this property is $1,653,840.
What are key features of this property?
This property features: True triple‑net lease offers zero landlord responsibilities.; 18 years remaining on the current lease term.; Current annual NOI of $108,199 with contractual 3% annual increases.
