Building Details

Year built 1927

Building materials Frame

Listing Agency: Keller Williams Legacy Group · Keller Williams Realty m***@gmail.com Show Phone

Listed By: Kelly Dodge Show Phone

Added: Aug 27 Last Checked: Aug 30 at 5:06AM

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MLS# 2606055

Copyright © 2026 Cedar Rapids Area Association of REALTORS®. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.

Investment Insights

Based on property information with market context.

This 1,080-square-foot frame office building dates to 1927 and includes a basement, providing a compact commercial footprint with additional below-grade space. The property has received several significant updates, including a new furnace, central air conditioning, and roof replacement.

Situated at 221 2nd Avenue N in Oxford Junction, the property occupies 0.15 acres within Jones County. Its stated possibilities include office use, a business location, investment ownership, or conversion to a residential setting, subject to applicable requirements. The existing configuration and recent mechanical and exterior improvements offer a straightforward base for a new owner’s plans.

Key Highlights

• 1,080 square feet of building area
• 0.15‑acre property in Oxford Junction
• Frame construction dating to 1927

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

$5,187

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

6.57%

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%

$103,740 $103.7K

Cap Rate 7%

$74,100 $74.1K

Cap Rate 9%

$57,633 $57.6K

Market Conditions

NOI Build-Up for 1,080 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

$9.1K $8.40/SF

− Vacancy

−$2.2K −$2.00/SF

EGI

$6.9K $6.40/SF

− OpEx

−$1.7K −$1.60/SF

NOI

$5.2K $4.80/SF

Area

Jones County, IA

Vacancy

23.77%

Lease Rate

$8.40 /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%

$103,740

Cap Rate 7%

$74,100

Cap Rate 9%

$57,633

Alternative Uses

Best Use

Office B

$74.1K

$64.8K – $86.5K (±1% cap)

NOI $5,187 @ 7.0% cap · market cap 6.57%

Second Best

—

—

no second resolved use

Theoretical Best

Specialty Retail

$156.3K

$136.8K – $182.4K (±1% cap)

NOI $10,942 @ 7.0% cap · market cap 13.85%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Office buildings

Suggested Use

Top Pick Auto Repair Shop Auto Parts Store Furniture & Home Goods Veterinary Clinic Grocery & Convenience Store Food Market

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

48

Businesses Nearby

Explore this area Business Placement

Demographics for 52323, IA

738

Population

471

Households

1.6

Avg Household Size

48

Median Age

8%

College-Educated

99%

High-School Grad

47.3 sq mi

ZIP Area

16

Density / Sq Mi

$55,096

Median Household Income

$29,319

Median Earnings

$771

Median Rent

$85,000

Median Home Value

Market

Vacancy Rate% for Office in Midwest region

13.7% 2019

15.6% 2020

17.1% 2021

18.9% 2022

21% 2023

22% 2024

21.3% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Office building - New furnace, central air, and roofing provide meaningful recent updates.

Where is this office building located?

The property is located at 221 2nd Avenue N Oxford Junction, IA.

What is the asking price?

The asking price for this property is $79,000.

What are key features of this property?

This property features: 1,080 square feet of building area; 0.15‑acre property in Oxford Junction; Frame construction dating to 1927