Restaurant Property with Outdoor
For Sale
Contact for pricing
216 Court Ave, Des Moines, IA 50309
Multi-level restaurant property with open floor plans, exposed brick, expansive windows, and updated common areas.
Property Size46,816 SF
Price / SF$121.75
Days on Market51
Property Features for 216 Court Ave
General Information
Standard status
Active
Size
46,816 SF
Property subtype
RETAIL
Additional Details
Patio
Yes
Amenities
common area and building signage updates
Building Details
Construction
brick
Listing Agency:
CBRE
(515) 224-4900
Listed By:
Grant Wright
(515) 745-5113
Source:
Moodyscre
Added: Jul 28
Changed: Sep 12
Last Checked: Sep 15 at 7:19AM
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 CBRE
Investment Insights
Based on property information with market context.
Located at 216 Court Ave in Des Moines, Iowa, this 46,816-square-foot restaurant property includes opportunities on the first and second floors. The first floor features an outdoor patio, expansive window lines, open floor plans, and exposed brick. An in-place first-floor lease with a local restaurant is also in place.
The property is within the Historic Court Avenue District and includes recently completed common area and building signage updates. Street-level space is eligible for potential participation in the City of Des Moines Restore the Core Incentive Program.
The property is within the Historic Court Avenue District and includes recently completed common area and building signage updates. Street-level space is eligible for potential participation in the City of Des Moines Restore the Core Incentive Program.
Key Highlights
- 46,816‑square‑foot restaurant property with first- and second‑floor opportunities
- In‑place first‑floor lease with a local restaurant
- Outdoor patio on the first floor
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
$454,700
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
7.98%
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%
$9,094,000
$9.1M
Cap Rate 7%
$6,495,714
$6.5M
Cap Rate 9%
$5,052,222
$5.1M
Market Conditions
NOI Build-Up for 46,816 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
$702.2K $15.00/SF
− Vacancy
−$52.7K −$1.13/SF
EGI
$649.6K $13.88/SF
− OpEx
−$194.9K −$4.16/SF
NOI
$454.7K $9.71/SF
Area
Des Moines, IA
Vacancy
7.50%
Lease Rate
$15.00 /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%
$9,094,000
Cap Rate 7%
$6,495,714
Cap Rate 9%
$5,052,222
Alternative Uses
Best Use
Specialty Retail
$7.92M
$6.93M – $9.24M
NOI $554,489 @ 7.0% cap · market cap 9.73%
Second Best
Retail
$6.50M
$5.68M – $7.58M
NOI $454,700 @ 7.0% cap · market cap 7.98%
Theoretical Best
Office A
$11.53M
$10.09M – $13.45M
NOI $807,093 @ 7.0% cap · market cap 14.16%
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
3,894
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 50309, IA
9,532
Population
7,562
Households
1.3
Avg Household Size
30
Median Age
67%
College-Educated
96%
High-School Grad
2.7 sq mi
ZIP Area
3,530
Density / Sq Mi
$57,974
Median Household Income
$52,775
Median Earnings
$1,166
Median Rent
$286,900
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Des Moines, IA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Multi-level restaurant property with open floor plans, exposed brick, expansive windows, and updated common areas.
Where is this conventional restaurant located?
The property is located at 216 Court Ave Des Moines, IA.
What is the asking price?
The asking price for this property is $5,700,000.
What are key features of this property?
This property features: 46,816‑square‑foot restaurant property with first- and second‑floor opportunities; In‑place first‑floor lease with a local restaurant; Outdoor patio on the first floor
