Multifamily Redevelopment Corner
For Sale
$1,900,000
2203-2221 Muscatine Ave, Iowa City, IA 52240
Income-producing multifamily property with an adjacent city parcel for a signalized intersection redevelopment concept.
Property Size17,662 SF
Lot Size0.87 Acres
Price / SF$107.58
Days on Market138
Property Features for 2203-2221 Muscatine Ave
General Information
Standard status
Active
Size
17,662 SF
Lot size
0.87 Acres
Property subtype
Commercial
Zoning
CC2
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$15,335
Amenities
Other
0.87
CountyRoad
Building Details
Year Built
1930
Listing Agency:
EXECUTIVE REALTY
(319) 981-2378
Listed By:
Kyle Steele
(319) 981-2378
Source:
Pinnaclerealtyia
Added: Apr 1
Changed: Aug 16
Last Checked: Aug 16 at 3:30AM
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 EXECUTIVE REALTY
Investment Insights
Based on property information with market context.
2203–2221 Muscatine Ave is an income-producing multifamily property offered for sale, with the existing improvements providing current cash-flow while also supporting a long-term redevelopment plan. The site includes the primary multifamily parcel plus an adjacent City-owned parcel that is available separately.
By combining the parcels, the total site size is 1.07 acres and can be positioned for redevelopment at a signalized hard corner, with visibility and traffic exposure associated with the prominent intersection. The City-owned adjacent land adds control of the corner location for an assembled redevelopment site.
For buyers and developers, the property offers a two-part structure: acquire the existing multifamily asset and pair it with the adjacent City-owned parcel to pursue a redevelopment outcome where both land control and intersection presence matter. The combination can support planning for future uses while the existing multifamily income-producing component remains in place through the transition period.
By combining the parcels, the total site size is 1.07 acres and can be positioned for redevelopment at a signalized hard corner, with visibility and traffic exposure associated with the prominent intersection. The City-owned adjacent land adds control of the corner location for an assembled redevelopment site.
For buyers and developers, the property offers a two-part structure: acquire the existing multifamily asset and pair it with the adjacent City-owned parcel to pursue a redevelopment outcome where both land control and intersection presence matter. The combination can support planning for future uses while the existing multifamily income-producing component remains in place through the transition period.
Key Highlights
- 0.87‑acre income‑producing multifamily property with county road frontage
- Adjacent city‑owned parcel also available; combined site total of 1.07 acres
- Built in 1930 (multifamily property)
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
$151,074
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
7.95%
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%
$3,021,480
$3.0M
Cap Rate 7%
$2,158,200
$2.2M
Cap Rate 9%
$1,678,600
$1.7M
Market Conditions
NOI Build-Up for 17,662 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
$286.1K $16.20/SF
− Vacancy
−$11.4K −$0.65/SF
EGI
$274.7K $15.55/SF
− OpEx
−$123.6K −$7.00/SF
NOI
$151.1K $8.55/SF
Area
Johnson County, IA
Vacancy
4.00%
Lease Rate
$16.20 /SF/Yr
Expense Ratio
45.00%
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%
$3,021,480
Cap Rate 7%
$2,158,200
Cap Rate 9%
$1,678,600
Alternative Uses
Best Use
Apartment 5plus
$2.16M
$1.89M – $2.52M
NOI $151,074 @ 7.0% cap · market cap 7.95%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.84M
$3.36M – $4.48M
NOI $268,575 @ 7.0% cap · market cap 14.14%
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
790
Businesses Nearby
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 Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Multifamily property - Income-producing multifamily property with an adjacent city parcel for a signalized intersection redevelopment concept.
Where is this multifamily property located?
The property is located at 2203-2221 Muscatine Ave Iowa City, IA.
What is the asking price?
The asking price for this property is $1,900,000.
What are key features of this property?
This property features: 0.87‑acre income‑producing multifamily property with county road frontage; Adjacent city‑owned parcel also available; combined site total of 1.07 acres; Built in 1930 (multifamily property)
