Drive-Through Restaurant
For Sale
$650,000
2209 Circle Drive W, Spirit Lake, IA 51360
Restaurant property with commercial kitchen infrastructure, cold storage, and a paved parking area.
Property Size3,569 SF
Lot Size1.40 Acres
Price / SF$182.12
Days on Market18
Property Features for 2209 Circle Drive W
General Information
Standard status
Active
Size
3,569 SF
Lot size
1.40 Acres
Property subtype
Commercial
Site & Location
Drive-Thru
Yes
Traffic Count
5,000 vehicles/day
Highway Access
Yes
Road Access
Yes
Additional Details
Asking Price
$650,000
Commercial Hood
Yes
Building Details
Year Built
1979
Listing Agency:
Jensen Real Estate
(712) 320-7245
Listed By:
Michael Jensen · License #7586
Source:
Integrityiowa
Added: Aug 13
Changed: Aug 29
Last Checked: Aug 29 at 10:37PM
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 Jensen Real Estate
Investment Insights
Based on property information with market context.
This 3,569-square-foot restaurant building, constructed in 1979, includes a drive-through, commercial hood, walk-in cooler, and walk-in freezer. The property is positioned on a level 1.4-acre site and includes a large paved parking lot. Recent improvements include a new roof and furnace, while existing equipment may be included if desired.
The property occupies the corner of Highways 71 and 9, with reported traffic of over 5,000 vehicles passing daily. It is located between Subway and Super 8. The building is available for sale or lease and provides a restaurant-oriented layout with established food-service infrastructure.
The property occupies the corner of Highways 71 and 9, with reported traffic of over 5,000 vehicles passing daily. It is located between Subway and Super 8. The building is available for sale or lease and provides a restaurant-oriented layout with established food-service infrastructure.
Key Highlights
- 1.4‑acre level site at the corner of Highways 71 and 9
- 3,569‑square‑foot restaurant building constructed in 1979
- Drive‑through with commercial hood, walk‑in cooler, and walk‑in freezer
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
$49,432
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
7.60%
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%
$988,640
$988.6K
Cap Rate 7%
$706,171
$706.2K
Cap Rate 9%
$549,244
$549.2K
Market Conditions
NOI Build-Up for 3,569 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
$67.7K $18.96/SF
− Vacancy
−$1.8K −$0.49/SF
EGI
$65.9K $18.47/SF
− OpEx
−$16.5K −$4.62/SF
NOI
$49.4K $13.85/SF
Area
Dickinson County, IA
Vacancy
2.60%
Lease Rate
$18.96 /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%
$988,640
Cap Rate 7%
$706,171
Cap Rate 9%
$549,244
Alternative Uses
Best Use
Specialty Retail
$706.2K
$617.9K – $823.9K
NOI $49,432 @ 7.0% cap · market cap 7.60%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$780.7K
$683.1K – $910.8K
NOI $54,649 @ 7.0% cap · market cap 8.41%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
5,000 VPD
Traffic count
Yes
Highway access
Yes
Paved road access
Yes
Commercial hood
Location Intelligence
Trade Area within ½ mile
334
Businesses Nearby
104k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Superstores 47%
Dining 18%
Shops & Services 17%
Home Improvements & Furnishings 14%
Walmart
Superstores
49,297 visits/mo
0.1 miles
Bomgaars
Home Improvements & Furnishings
14,889 visits/mo
0.3 miles
Dollar Tree
Shops & Services
9,246 visits/mo
0.5 miles
Taco John's
Dining
7,913 visits/mo
0.2 miles
Pizza Ranch
Dining
6,813 visits/mo
0.2 miles
Demographics for 51360, IA
8,553
Population
6,638
Households
1.3
Avg Household Size
49
Median Age
35%
College-Educated
97%
High-School Grad
105.2 sq mi
ZIP Area
81
Density / Sq Mi
$77,464
Median Household Income
$41,043
Median Earnings
$1,005
Median Rent
$256,000
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?
Drive through restaurant - Restaurant property with commercial kitchen infrastructure, cold storage, and a paved parking area.
Where is this drive through restaurant located?
The property is located at 2209 Circle Drive W Spirit Lake, IA.
What is the asking price?
The asking price for this property is $650,000.
What are key features of this property?
This property features: 1.4‑acre level site at the corner of Highways 71 and 9; 3,569‑square‑foot restaurant building constructed in 1979; Drive‑through with commercial hood, walk‑in cooler, and walk‑in freezer
