Fully Leased Office
New
For Sale
$4,750,000
2346 Mormon Trek Blvd, Iowa City, IA 52246
Fully leased office property with elevator service and both surface and underground parking.
Property Size28,545 SF
Price / SF$166.40
Days on Market4
Property Features for 2346 Mormon Trek Blvd
General Information
Standard status
Active
Size
28,545 SF
Class
class A
Elevators
Yes
Occupancy
100%
Net Operating Income
$284,880
Financials
Cap Rate
6%
Gross Income
$521,019
Building Details
Year Built
1996
Buildings
1
Building Size
28,545 SF
Tenancy
Multi
Listing Agency:
Lepic-Kroeger, REALTORS
(319) 331-6187
Listed By:
Jeff Edberg · License #B33730000
Source:
Kwlegacyrealty
Added: Aug 8
Changed: Aug 9
Last Checked: Aug 10 at 8:01AM
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 Lepic-Kroeger, REALTORS
Investment Insights
Based on property information with market context.
The Grandview Building is a 28,545-square-foot office property completed in 1996. The building contains 25,246 square feet of leased space and is fully occupied by multiple professional and healthcare-oriented tenants, including Covenant Family Solutions, Alberhasky Eye, United Iowa Financial, Lepic-Kroeger, Realtors, City Construction, Willow Creek Dentistry, and Susan Mimms Financial.
Building access extends from the lower-level garage through the second floor via elevator. Parking is provided through two surface lots and underground parking. The property is located at 2346 Mormon Trek Blvd in Iowa City, Iowa, and has a reported 6.0% capitalization rate.
Building access extends from the lower-level garage through the second floor via elevator. Parking is provided through two surface lots and underground parking. The property is located at 2346 Mormon Trek Blvd in Iowa City, Iowa, and has a reported 6.0% capitalization rate.
Key Highlights
- 28,545 SF office building completed in 1996
- 25,246 SF of leased space with full occupancy
- Two surface parking lots plus underground parking
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
$327,554
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
6.90%
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%
$6,551,080
$6.6M
Cap Rate 7%
$4,679,343
$4.7M
Cap Rate 9%
$3,639,489
$3.6M
Market Conditions
NOI Build-Up for 28,545 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
$513.8K $18.00/SF
− Vacancy
−$77.1K −$2.70/SF
EGI
$436.7K $15.30/SF
− OpEx
−$109.2K −$3.82/SF
NOI
$327.6K $11.48/SF
Area
Johnson County, IA
Vacancy
15.00%
Lease Rate
$18.00 /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%
$6,551,080
Cap Rate 7%
$4,679,343
Cap Rate 9%
$3,639,489
Alternative Uses
Best Use
Office B
$4.68M
$4.09M – $5.46M
NOI $327,554 @ 7.0% cap · market cap 6.90%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$6.20M
$5.43M – $7.23M
NOI $434,067 @ 7.0% cap · market cap 9.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
254
Businesses Nearby
Explore this area
Business Placement
Demographics for 52246, IA
22,829
Population
10,627
Households
2.1
Avg Household Size
29
Median Age
67%
College-Educated
95%
High-School Grad
16.7 sq mi
ZIP Area
1,367
Density / Sq Mi
$55,088
Median Household Income
$28,598
Median Earnings
$1,049
Median Rent
$327,100
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Fully leased office property with elevator service and both surface and underground parking.
Where is this office building located?
The property is located at 2346 Mormon Trek Blvd Iowa City, IA.
What is the asking price?
The asking price for this property is $4,750,000.
What are key features of this property?
This property features: 28,545 SF office building completed in 1996; 25,246 SF of leased space with full occupancy; Two surface parking lots plus underground parking
