Listing Agency: CBRE | Omaha

Listed By: Talia Swanson · License #20120409 Show Phone

Source: Cbre

Added: Mar 25 Changed: Oct 7 Last Checked: Oct 14 at 10:14PM

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Investment Insights

Based on property information with market context.

The Underwood Motel on Mulberry is a 21-unit motel in Underwood, Iowa, presenting an opportunity for acquisition. The property features a one-story building, accompanied by a two-story manager apartment and office, situated adjacent to Interstate 80. Constructed in 1973, the single-story linear motel includes a two-story manager apartment and office. The property is located west of I-80, near Exit 17 and next to the Underwood I-80 Truck Stop. It is one of only two motels or hotels within a 13-mile radius and is within walking distance of the Jack Links Beef Jerky Plant and the town of Underwood. Each of the 21 rooms is equipped with refrigerators, microwaves, complimentary Wi-Fi, and cable TV. An on-premise laundry facility is available. The location is convenient, being within 10 miles of Council Bluffs and the Omaha, Nebraska metropolitan area. Demand generators include I-80 traffic, casinos, golf courses, the Jack Links plant, convention centers, concert venues, and the Henry Doorly Zoo. Recent capital improvements and renovations have been completed. The building size is 7,752 square feet and the land area is 1.26 acres.

Key Highlights

• Adjacent to Exit 17 off I‑80, providing convenient access for travelers.
• Only one of two motels/hotels within a 13‑mile radius, reducing competition.
• Includes a two‑story manager's apartment and leasing office.

Financial Insights

Estimated NOI and Cap Rate

NOI / Yr

$46,948

Cap Rate

8.54%

Suggested Prices Based on Cap Rates

Cap Rate 5%

$938,960 $939.0K

Cap Rate 7%

$670,686 $670.7K

Cap Rate 9%

$521,644 $521.6K

Is this asking price fair?

Market Conditions

NOI Build-Up for 7,752 SF

Gross rent

$116.3K $15.00/SF

− Vacancy

−$17.4K −$2.25/SF

EGI

$98.8K $12.75/SF

− OpEx

−$51.9K −$6.69/SF

NOI

$46.9K $6.06/SF

Area

Pottawattamie County, IA

Vacancy

15.00%

Lease Rate

$15.00 /SF/Yr

Expense Ratio

52.50%

Simulate Cap Rate and NOI

Suggested Prices Based on Cap Rates

Cap Rate 5%

$938,960

Cap Rate 7%

$670,686

Cap Rate 9%

$521,644

Alternative Uses

Best Use

Hotel Hospitality

$670.7K

$586.9K – $782.5K (±1% cap)

NOI $46,948 @ 7.0% cap · market cap 8.54%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$1.48M

$1.30M – $1.73M (±1% cap)

NOI $103,633 @ 7.0% cap · market cap 18.84%

Zoning and permitted uses should be independently verified with authorities. How Realmo checks its estimates

Property Analytics

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Current Use

Motels

Suggested Use

Top Pick Parking Lot & Garage Auto Parts Store Big Box & Wholesale Store Bakery Nail Salon Tanning Salon

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

25

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 51576, IA

2,058

Population

751

Households

2.7

Avg Household Size

40

Median Age

32%

College-Educated

97%

High-School Grad

46.3 sq mi

ZIP Area

44

Density / Sq Mi

$107,679

Median Household Income

$47,314

Median Earnings

$819

Median Rent

$291,500

Median Home Value

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Similar Off Market Nearby

• Underwood Motel I80 — 26553 Magnolia Rd, Underwood, IA 51576

Frequently Asked Questions

What type of property is this?

Motel - 21-unit motel with manager's apartment near I-80.

Where is this motel located?

The property is located at 24936 Mulberry Lane Underwood, IA.

What is the asking price?

The asking price for this property is $550,000.

What are key features of this property?

This property features: Adjacent to Exit 17 off I‑80, providing convenient access for travelers.; Only one of two motels/hotels within a 13‑mile radius, reducing competition.; Includes a two‑story manager's apartment and leasing office.