Functional Commercial Property with
For Sale
$425,000
2120 E Oak St, Algona, IA 50511
Well-equipped 3,816 sq. ft. commercial space with additional storage.
Property Size3,816 SF
Price / SF$111.37
Days on Market98
Property Features for 2120 E Oak St
General Information
Standard status
Active
Size
3,816 SF
Taxes and HOA fees
Annual Taxes
$3,515
Listing Agency:
EXIT Realty Home/Land Properties
(515) 341-2325
Listed By:
Betty Kunkel · License #***
(515) 341-2325
Source:
Exprealty
Added: May 20
Changed: Aug 25
Last Checked: Aug 24 at 11:44AM
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 EXIT Realty Home/Land Properties
Investment Insights
Based on property information with market context.
This versatile commercial property provides 3,816 square feet of equipped space designed for functionality and comfort. The metal building includes four overhead garage doors, a dedicated workout area, and loft space. It also features a ¾ bath. The front shop area is cooled by a mini-split system and heated with both forced air and infrared heat. The back shop area has in-floor radiant heat powered by a boiler system that also services the water heater. The property also includes a full kitchen with reverse osmosis, an owned water softener, and updated fiber internet. An additional 880 square foot metal shed offers extra storage or workspace. Ample parking is available in the front and rear of the property, making it suitable for a variety of commercial or hobby uses.
Key Highlights
- 3,816 sq. ft. versatile commercial space suitable for various uses.
- Features four overhead garage doors for easy access and functionality.
- Efficient heating systems: In
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
$17,120
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
4.03%
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%
$342,400
$342.4K
Cap Rate 7%
$244,571
$244.6K
Cap Rate 9%
$190,222
$190.2K
Market Conditions
NOI Build-Up for 3,816 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
$27.9K $7.32/SF
− Vacancy
−$1.6K −$0.42/SF
EGI
$26.3K $6.90/SF
− OpEx
−$9.2K −$2.42/SF
NOI
$17.1K $4.49/SF
Area
Kossuth County, IA
Vacancy
5.71%
Lease Rate
$7.32 /SF/Yr
Expense Ratio
35.00%
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%
$342,400
Cap Rate 7%
$244,571
Cap Rate 9%
$190,222
Alternative Uses
Best Use
Industrial
$2.63M
$2.30M – $3.07M
NOI $184,311 @ 7.0% cap · market cap 43.37%
Second Best
Flex RnD
$244.6K
$214.0K – $285.3K
NOI $17,120 @ 7.0% cap · market cap 4.03%
Theoretical Best
Warehouse
$2.85M
$2.49M – $3.32M
NOI $199,230 @ 7.0% cap · market cap 46.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
144
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 50511, IA
7,061
Population
3,385
Households
2.1
Avg Household Size
47
Median Age
26%
College-Educated
95%
High-School Grad
130.0 sq mi
ZIP Area
54
Density / Sq Mi
$60,256
Median Household Income
$43,692
Median Earnings
$892
Median Rent
$180,600
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Well-equipped 3,816 sq. ft. commercial space with additional storage.
Where is this flex space located?
The property is located at 2120 E Oak St Algona, IA.
What is the asking price?
The asking price for this property is $425,000.
What are key features of this property?
This property features: 3,816 sq. ft. versatile commercial space suitable for various uses.; Features four overhead garage doors for easy access and functionality.; Efficient heating systems: In
