Restaurant Building with
For Sale
$480,000
216 8th Street SE, Cedar Rapids, IA 52401
Operating restaurant sale includes the business, building, parking lot, and existing components.
Property Size2,340 SF
Price / SF$205.13
Days on Market1184
Property Features for 216 8th Street SE
General Information
Standard status
Active
Size
2,340 SF
Property subtype
Commercial
Lease Term
[]
Additional Details
Business Included
Yes
Building Details
Year Built
1915
Construction
brick veneer
Listing Agency:
SKOGMAN REALTY,
Listed By:
Kerrie Merck
(319) 364-8121
Source:
Cbhrealty
Added: Jun 5, 2023
Changed: Aug 30
Last Checked: Aug 30 at 11:25PM
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 SKOGMAN REALTY,
Investment Insights
Based on property information with market context.
This conventional restaurant property includes an operating business, the building, a dedicated parking lot, and the components associated with the operation. The structure features brick veneer construction and a membrane rooftop, with a recorded construction date of 1915.
The property is situated in Cedar Rapids’ medical district near downtown at 216 8th Street SE. The offering combines the restaurant operation and real estate in one sale, providing an established physical setting for continued restaurant use.
The property is situated in Cedar Rapids’ medical district near downtown at 216 8th Street SE. The offering combines the restaurant operation and real estate in one sale, providing an established physical setting for continued restaurant use.
Key Highlights
- Operating restaurant business included with the sale
- Building, parking lot, and existing restaurant components convey
- Brick veneer construction with membrane rooftop
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
$23,707
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
4.94%
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%
$474,140
$474.1K
Cap Rate 7%
$338,671
$338.7K
Cap Rate 9%
$263,411
$263.4K
Market Conditions
NOI Build-Up for 2,340 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
$34.3K $14.64/SF
− Vacancy
−$2.6K −$1.13/SF
EGI
$31.6K $13.51/SF
− OpEx
−$7.9K −$3.38/SF
NOI
$23.7K $10.13/SF
Area
Cedar Rapids, IA
Vacancy
7.73%
Lease Rate
$14.64 /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%
$474,140
Cap Rate 7%
$338,671
Cap Rate 9%
$263,411
Alternative Uses
Best Use
Specialty Retail
$338.7K
$296.3K – $395.1K
NOI $23,707 @ 7.0% cap · market cap 4.94%
Second Best
—
—
no second resolved use
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
3,746
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 52401, IA
2,320
Population
1,480
Households
1.6
Avg Household Size
35
Median Age
35%
College-Educated
89%
High-School Grad
1.2 sq mi
ZIP Area
1,933
Density / Sq Mi
$40,675
Median Household Income
$38,635
Median Earnings
$783
Median Rent
$143,800
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Operating restaurant sale includes the business, building, parking lot, and existing components.
Where is this conventional restaurant located?
The property is located at 216 8th Street SE Cedar Rapids, IA.
What is the asking price?
The asking price for this property is $480,000.
What are key features of this property?
This property features: Operating restaurant business included with the sale; Building, parking lot, and existing restaurant components convey; Brick veneer construction with membrane rooftop
