Nursery and Garden Center
New
For Sale
$1,395,000
2501 Melrose Drive, Cedar Falls, IA 50613
The site includes retail, warehouse, greenhouse, and canopy improvements with extensive concrete paving.
Property Size11,843 SF
Lot Size2.09 Acres
Price / SF$130.48
Days on Market1
Property Features for 2501 Melrose Drive
General Information
Standard status
Active
Size
11,843 SF
Lot size
2.09 Acres
Property subtype
Commercial
Zoning
S-1
Property Condition
Severity
Repairs Needed
Evidence
good to dated condition
Warehouse & Industrial
Warehouse Space
900 SF
Mezzanine
516 SF
Sprinkler System
Yes
Taxes and HOA fees
Annual Taxes
$29,712
Amenities
HVAC
loading dock
Concrete
Corner Lot,City Street
2.09
11843
Building Details
Building Size
11,843 SF
Year Built
1984
Listing Agency:
Lockard Realty Company
(319) 393-0900
Listed By:
Jerome Edwards
(319) 594-2525
Source:
Pinnaclerealtyia
Added: Sep 22
Last Checked: Sep 22 at 1:50PM
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 Lockard Realty Company
Investment Insights
Based on property information with market context.
This 2.09-acre commercial property in Cedar Falls includes a 7,475-square-foot main retail building with HVAC, an exposed wet sprinkler system, and a finished mezzanine. Supporting improvements include a 900-square-foot warehouse with loading dock, an 1,800-square-foot greenhouse, and a 1,152-square-foot attached canopy. Existing retail fixtures have largely been removed, leaving the interior available for reconfiguration.
Approximately 39,000 square feet of concrete paving provides substantial surfaced outdoor and parking areas. The property is zoned S-1 and includes a functional commercial layout with improvements dating to 1984. Its combination of retail, storage, greenhouse, and covered areas supports continued nursery-related use or other permitted commercial applications.
Approximately 39,000 square feet of concrete paving provides substantial surfaced outdoor and parking areas. The property is zoned S-1 and includes a functional commercial layout with improvements dating to 1984. Its combination of retail, storage, greenhouse, and covered areas supports continued nursery-related use or other permitted commercial applications.
Key Highlights
- 2.09‑acre commercial site in Cedar Falls
- 7,475 SF main retail building with HVAC and exposed wet sprinkler system
- 900 SF warehouse with loading dock
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
$106,070
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
7.60%
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%
$2,121,400
$2.1M
Cap Rate 7%
$1,515,286
$1.5M
Cap Rate 9%
$1,178,556
$1.2M
Market Conditions
NOI Build-Up for 10,691 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
$165.5K $15.48/SF
− Vacancy
−$14.0K −$1.31/SF
EGI
$151.5K $14.17/SF
− OpEx
−$45.5K −$4.25/SF
NOI
$106.1K $9.92/SF
Area
Black Hawk County, IA
Vacancy
8.44%
Lease Rate
$15.48 /SF/Yr
Expense Ratio
30.00%
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%
$2,121,400
Cap Rate 7%
$1,515,286
Cap Rate 9%
$1,178,556
Alternative Uses
Best Use
Warehouse
$10.81M
$9.46M – $12.61M
NOI $756,767 @ 7.0% cap · market cap 54.25%
Second Best
Retail
$1.52M
$1.33M – $1.77M
NOI $106,070 @ 7.0% cap · market cap 7.60%
Theoretical Best
Mixed Use
$13.40M
$11.73M – $15.64M
NOI $938,135 @ 7.0% cap · market cap 67.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Yes
Sprinkler system
Location Intelligence
Trade Area within ½ mile
492
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 50613, IA
43,667
Population
17,808
Households
2.5
Avg Household Size
32
Median Age
48%
College-Educated
97%
High-School Grad
127.6 sq mi
ZIP Area
342
Density / Sq Mi
$75,642
Median Household Income
$33,099
Median Earnings
$1,176
Median Rent
$258,300
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Industrial in Midwest region
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Similar Off Market Nearby
- Hy-Vee Lawn & Garden — 6301 University Ave, Cedar Falls, IA 50613
- Earl May Garden Center — 2501 Melrose Dr, Cedar Falls, IA 50613
Frequently Asked Questions
What type of property is this?
Nursery and garden center - The site includes retail, warehouse, greenhouse, and canopy improvements with extensive concrete paving.
Where is this nursery and garden center located?
The property is located at 2501 Melrose Drive Cedar Falls, IA.
What is the asking price?
The asking price for this property is $1,395,000.
What are key features of this property?
This property features: 2.09‑acre commercial site in Cedar Falls; 7,475 SF main retail building with HVAC and exposed wet sprinkler system; 900 SF warehouse with loading dock
