Cedar Rapids Industrial Investment
For Sale
$3,995,000
2055 N Towne Ln NE, Cedar Rapids, IA 52402
Fully leased industrial property with strong tenant and tax abatement.
Property Size63,200 SF
Price / SF$63.21
Days on Market226
Property Features for 2055 N Towne Ln NE
General Information
Standard status
Active
Size
63,200 SF
Property subtype
Commercial
Zoning
I-LI
Taxes and HOA fees
Annual Taxes
$19,406
Amenities
ConcreteSlabGrade
2.35
Paved
Building Details
Year Built
1965
Listing Agency:
Keller Williams Legacy Group
(319) 393-0900
Listed By:
Delmar Yoder
(319) 430-2711
Source:
Pinnaclerealtyia
Added: Feb 18
Changed: Sep 30
Last Checked: Oct 1 at 9:28AM
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 Keller Williams Legacy Group
Investment Insights
Based on property information with market context.
This fully leased industrial property is located on the northeast side of Cedar Rapids, offering convenient access to I-380. The property features 60,000 square feet of warehouse space and 3,200 square feet of office space within a steel-frame construction building. The warehouse includes six dock doors, one drive-in door, and a 20-foot sidewall height. Recent capital improvements include new plumbing, electrical systems, fire suppression, and motion-sensor LED lighting throughout the building, as well as roof repairs with new metal sheeting. The property is leased to a strong-credit, multi-state contractor under a two-year lease at $5.50 per square foot NNN, with a rent increase in the second year. The net operating income (NOI) in the first year is $347,600, producing an 8.7% cap rate, with the NOI increasing to $358,344 in the second year. The property also benefits from a 3-year, 100% tax abatement on all improvements. The total property size is 63,200 square feet.
Key Highlights
- Fully leased to a strong‑credit, multi‑state contractor providing immediate income.
- Attractive 8.7% cap rate in Year 1 with increasing NOI in Year 2.
- Recent capital improvements including new plumbing, electrical, fire suppression, LED lighting, and roof repairs.
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
$331,373
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
8.29%
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%
$6,627,460
$6.6M
Cap Rate 7%
$4,733,900
$4.7M
Cap Rate 9%
$3,681,922
$3.7M
Market Conditions
NOI Build-Up for 63,200 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
$493.0K $7.80/SF
− Vacancy
−$19.6K −$0.31/SF
EGI
$473.4K $7.49/SF
− OpEx
−$142.0K −$2.25/SF
NOI
$331.4K $5.24/SF
Area
Cedar Rapids, IA
Vacancy
3.97%
Lease Rate
$7.80 /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%
$6,627,460
Cap Rate 7%
$4,733,900
Cap Rate 9%
$3,681,922
Alternative Uses
Best Use
Warehouse
$5.75M
$5.03M – $6.71M
NOI $402,381 @ 7.0% cap · market cap 10.07%
Second Best
Industrial
$4.73M
$4.14M – $5.52M
NOI $331,373 @ 7.0% cap · market cap 8.29%
Theoretical Best
Specialty Retail
$9.15M
$8.00M – $10.67M
NOI $640,295 @ 7.0% cap · market cap 16.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
759
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 52402, IA
42,072
Population
19,848
Households
2.1
Avg Household Size
36
Median Age
41%
College-Educated
95%
High-School Grad
13.7 sq mi
ZIP Area
3,071
Density / Sq Mi
$71,319
Median Household Income
$41,753
Median Earnings
$992
Median Rent
$188,700
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Midwest region
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Frequently Asked Questions
What type of property is this?
Warehouse - Fully leased industrial property with strong tenant and tax abatement.
Where is this warehouse located?
The property is located at 2055 N Towne Ln NE Cedar Rapids, IA.
What is the asking price?
The asking price for this property is $3,995,000.
What are key features of this property?
This property features: Fully leased to a strong‑credit, multi‑state contractor providing immediate income.; Attractive 8.7% cap rate in Year 1 with increasing NOI in Year 2.; Recent capital improvements including new plumbing, electrical, fire suppression, LED lighting, and roof repairs.
