Flex Building with Overhead
For Sale
$355,000
Pending
1947 Waterfront Drive, Iowa City, IA 52240
Flex-style building includes front office with large windows, heated shop with overhead doors, and outdoor storage plus parking space.
Property Size2,378 SF
Days on Market77
Property Features for 1947 Waterfront Drive
General Information
Standard status
Pending
Size
2,378 SF
Property subtype
Pending
Zoning
CI1
Additional Details
Outdoor Storage
Yes
Taxes and HOA fees
Annual Taxes
$6,062
Amenities
ConcreteSlabGrade
ZeroStepEntry
Irr
0.55
CountyRoad,Paved
Building Details
Year Built
1971
Listing Agency:
GLD COMMERCIAL
(319) 393-0900
Listed By:
Tatiana McClinton
(319) 270-6253
Source:
Pinnaclerealtyia
Added: Jun 23
Changed: Sep 6
Last Checked: Sep 7 at 6:13AM
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 GLD COMMERCIAL
Investment Insights
Based on property information with market context.
This flex building combines a front office with a heated shop and large storage area. The office features three oversized windows that bring natural light into the entry, while the shop is served by two overhead doors. A third overhead door connects to a larger storage area positioned between the office and shop. Additional outdoor storage and parking are supported by an oversized lot, with room to spread out or consider future expansion.
The property is offered for sale at 1947 Waterfront Drive in Iowa City, IA 52240.
The property is offered for sale at 1947 Waterfront Drive in Iowa City, IA 52240.
Key Highlights
- 0.4‑acre commercial flex‑style building with county road frontage and paved road access
- Front office with three large windows for natural light
- Heated shop space with two overhead doors
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
$14,232
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
4.01%
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%
$284,640
$284.6K
Cap Rate 7%
$203,314
$203.3K
Cap Rate 9%
$158,133
$158.1K
Market Conditions
NOI Build-Up for 2,378 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
$21.4K $9.00/SF
− Vacancy
−$1.1K −$0.45/SF
EGI
$20.3K $8.55/SF
− OpEx
−$6.1K −$2.56/SF
NOI
$14.2K $5.98/SF
Area
Johnson County, IA
Vacancy
5.00%
Lease Rate
$9.00 /SF/Yr
Expense Ratio
30.00%
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%
$284,640
Cap Rate 7%
$203,314
Cap Rate 9%
$158,133
Alternative Uses
Best Use
Industrial
$203.3K
$177.9K – $237.2K
NOI $14,232 @ 7.0% cap · market cap 4.01%
Second Best
Flex RnD
$152.4K
$133.4K – $177.8K
NOI $10,668 @ 7.0% cap · market cap 3.01%
Theoretical Best
Office A
$516.6K
$452.0K – $602.7K
NOI $36,161 @ 7.0% cap · market cap 10.19%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
734
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 52240, IA
34,224
Population
17,035
Households
2
Avg Household Size
29
Median Age
47%
College-Educated
94%
High-School Grad
142.1 sq mi
ZIP Area
241
Density / Sq Mi
$55,189
Median Household Income
$25,508
Median Earnings
$1,065
Median Rent
$241,100
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
- SELINA'S CREATIONS — 611 Southgate Ave, Iowa City, IA 52240
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- Firehouse Subs HWY One IC — 161 Hwy 1 W, Iowa City, IA 52246
- Wich-Uh-Waffle — 1104 S Gilbert St, Iowa City, IA 52240
Frequently Asked Questions
What type of property is this?
Flex space - Flex-style building includes front office with large windows, heated shop with overhead doors, and outdoor storage plus parking space.
Where is this flex space located?
The property is located at 1947 Waterfront Drive Iowa City, IA.
What is the asking price?
The asking price for this property is $355,000.
What are key features of this property?
This property features: 0.4‑acre commercial flex‑style building with county road frontage and paved road access; Front office with three large windows for natural light; Heated shop space with two overhead doors
