Office Building with
For Sale
$4,750,000
2346 Mormon Trek Blvd, Iowa City, IA 52246
CommercialSale, IowaCity, IA
Property Size28,545 SF
Lot Size1.45 Acres
Price / SF$166.40
Days on Market49
Property Features for 2346 Mormon Trek Blvd
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
CO1
Interior features
Elevator, ZeroStepEntry
Accessibility
Accessible Elevator Installed
Directions
At the intersection of Mormon Trek Blvd & West Side Dr.
Subdivision
IowaCity
Standard status
Active
APN
1020157004
Lot size
1.45 Acres
Taxes and HOA fees
Tax Year
2023
Tax Annual Amount
145610
Utilities
Heating system
Natural Gas, Forced Air
Cooling system
Central Air
Building Details
Year built
1996
Flooring type
Tile, Carpet
Building materials
Brick, Frame
Roof type
Metal
Listing Agency:
Lepic-Kroeger, REALTORS
(319) 351-8811
Listed By:
Jeff Edberg · License #B33730000
(319) 331-6187
Added: Jul 13
Changed: Aug 19
Last Checked: Aug 30 at 7:06AM
MLS# 202604338
Copyright © 2026 Iowa City 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.
Built in 1996, this office property at 2346 Mormon Trek Blvd features brick and frame construction, a metal roof, tile and carpet flooring, natural gas forced-air heat, and central air conditioning. Elevator access connects the lower-level garage with the second floor, and the building also provides zero-step entry and an accessible elevator. Two surface parking lots supplement the underground parking area.
The property is fully leased and zoned CO1. Tenants include Covenant Family Solutions, Alberhasky Eye, United Iowa Financial, Lepic-Kroeger, Realtors, City Construction, Willow Creek Dentistry, and Susan Mimms Financial. Its Iowa City location places the building on Mormon Trek Blvd within Johnson County, with practical access from the on-site parking areas.
The property is fully leased and zoned CO1. Tenants include Covenant Family Solutions, Alberhasky Eye, United Iowa Financial, Lepic-Kroeger, Realtors, City Construction, Willow Creek Dentistry, and Susan Mimms Financial. Its Iowa City location places the building on Mormon Trek Blvd within Johnson County, with practical access from the on-site parking areas.
Key Highlights
- Fully leased office property on a 1.45‑acre site
- 6.0% capitalization rate
- 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
$338,498
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
7.13%
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%
$6,769,960
$6.8M
Cap Rate 7%
$4,835,686
$4.8M
Cap Rate 9%
$3,761,089
$3.8M
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
$626.8K $21.96/SF
− Vacancy
−$62.7K −$2.20/SF
EGI
$564.2K $19.76/SF
− OpEx
−$225.7K −$7.91/SF
NOI
$338.5K $11.86/SF
Area
Johnson County, IA
Vacancy
10.00%
Lease Rate
$21.96 /SF/Yr
Expense Ratio
40.00%
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%
$6,769,960
Cap Rate 7%
$4,835,686
Cap Rate 9%
$3,761,089
Alternative Uses
Best Use
Healthcare Medical
$4.84M
$4.23M – $5.64M
NOI $338,498 @ 7.0% cap · market cap 7.13%
Second Best
Office B
$4.68M
$4.09M – $5.46M
NOI $327,554 @ 7.0% cap · market cap 6.90%
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
379
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 professional property with surface and underground parking on a 1.45-acre site.
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: Fully leased office property on a 1.45‑acre site; 6.0% capitalization rate; Two surface parking lots plus underground parking
