Amazon Distribution Building For
For Sale
Contact for pricing
Pending
2500 Heinz Rd, Iowa City, IA 52240
346,062 sq. ft. distribution building fully leased to Amazon.
Property Size346,062 SF
Lot Size37.49 Acres
Days on Market181
Property Features for 2500 Heinz Rd
General Information
Standard status
Pending
Size
346,062 SF
Class
A
Lot size
37.49 Acres
Property subtype
Industrial
Occupancy
100%
Lease Type
NN
Investment Type
Net Lease
Net Operating Income
$2,405,996
Building Details
Year Built
1971
Year Renovated
2019
Tenancy
Single
Listing Agency:
Cushman & Wakefield - San Francisco, California
Listed By:
Douglas Longyear · License #CA 00829911
Source:
Crexi
Added: Feb 12
Changed: Aug 8
Last Checked: Aug 11 at 6:18PM
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 Cushman & Wakefield - San Francisco, California
Investment Insights
Based on property information with market context.
The property is a 346,062 square foot distribution building situated on a 37.49-acre site in Iowa City, Iowa. The building is fully leased to Amazon.com Services LLC, with a guarantee from Amazon.com, Inc. The facility serves as an Amazon delivery station. The initial lease term was 5 years and 5 months. Amazon has exercised its first renewal option for a 5-year extension, commencing on April 1, 2025, and has two further 5-year renewal options. The rent during the renewal periods will be at fair market rent. The property offers extensive parking for employee vehicles, delivery vans, and truck trailers. The location serves the Cedar Rapids metro area, with an approximate population of 276,000, and the Iowa City metro area, with an approximate population of 175,000. The combined population of these two MSAs is 451,000. Cedar Rapids is approximately 27 miles from Iowa City and features a diverse range of industries, including defense, financial services, food processing and manufacturing, advanced manufacturing, and biosciences. The University of Iowa is located in Iowa City.
Key Highlights
- Fully leased to Amazon.com Services LLC and guaranteed by Amazon.com, Inc. (S&P: AA-).
- Amazon recently exercised its first renewal option for a 5‑year extension, beginning April 1, 2025.
- Located on a 37.49‑acre site with extensive 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
$2,696,792
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
8.05%
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%
$53,935,840
$53.9M
Cap Rate 7%
$38,525,600
$38.5M
Cap Rate 9%
$29,964,356
$30.0M
Market Conditions
NOI Build-Up for 346,062 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
$3.32M $9.60/SF
− Vacancy
−$149.5K −$0.43/SF
EGI
$3.17M $9.17/SF
− OpEx
−$475.9K −$1.38/SF
NOI
$2.70M $7.79/SF
Area
Johnson County, IA
Vacancy
4.50%
Lease Rate
$9.60 /SF/Yr
Expense Ratio
15.00%
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%
$53,935,840
Cap Rate 7%
$38,525,600
Cap Rate 9%
$29,964,356
Alternative Uses
Best Use
Warehouse
$38.53M
$33.71M – $44.95M
NOI $2,696,792 @ 7.0% cap · market cap 8.05%
Second Best
Industrial
$29.59M
$25.89M – $34.52M
NOI $2,071,181 @ 7.0% cap · market cap 6.18%
Theoretical Best
Office A
$75.18M
$65.78M – $87.71M
NOI $5,262,357 @ 7.0% cap · market cap 15.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
185
Businesses Nearby
Explore this area
Business Placement
Demographics for 52240, IA
34,224
Population
17,035
Households
2
Avg Household Size
29
Median Age
47%
College-Educated
94%
High-School Grad
142.1 sq mi
ZIP Area
241
Density / Sq Mi
$55,189
Median Household Income
$25,508
Median Earnings
$1,065
Median Rent
$241,100
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Distribution center - 346,062 sq. ft. distribution building fully leased to Amazon.
Where is this distribution center located?
The property is located at 2500 Heinz Rd Iowa City, IA.
What is the asking price?
The asking price for this property is $33,500,000.
What are key features of this property?
This property features: Fully leased to Amazon.com Services LLC and guaranteed by Amazon.com, Inc. (S&P: AA-).; Amazon recently exercised its first renewal option for a 5‑year extension, beginning April 1, 2025.; Located on a **37.49‑acre site with extensive parking**.
