Office Building with Central
For Sale
$495,000
2601 120th Street, Cedar Rapids, IA 52338
Office property with central air, asphalt and shingle exterior features, and a location between Cedar Rapids and Iowa City.
Property Size1,702 SF
Price / SF$290.83
Days on Market12
Property Features for 2601 120th Street
General Information
Standard status
Active
Size
1,702 SF
Property subtype
General Commercial
Taxes and HOA fees
Annual Taxes
$4,346
Amenities
Central Air
Asphalt, Shingle
Building Details
Year Built
1971
Listing Agency:
Pinnacle Realty, LLC
(319) 550-2125
Listed By:
Trevis Adair · License #S700510
(319) 550-2125
Source:
Xome
Added: Aug 5
Changed: Aug 15
Last Checked: Aug 16 at 4:03AM
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 Pinnacle Realty, LLC
Investment Insights
Based on property information with market context.
This office building contains 1,702 square feet and was constructed in 1971. Central air is included, while the exterior features asphalt and shingle materials.
The property is located at 2601 120th Street in Cedar Rapids, Iowa, between Cedar Rapids and Iowa City. Its classification as an office building supports straightforward evaluation for office-focused ownership or occupancy.
The property is located at 2601 120th Street in Cedar Rapids, Iowa, between Cedar Rapids and Iowa City. Its classification as an office building supports straightforward evaluation for office-focused ownership or occupancy.
Key Highlights
- 1,702‑square‑foot office building
- Central air conditioning
- Built in 1971
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
$16,094
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
3.25%
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%
$321,880
$321.9K
Cap Rate 7%
$229,914
$229.9K
Cap Rate 9%
$178,822
$178.8K
Market Conditions
NOI Build-Up for 1,702 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
$24.9K $14.64/SF
− Vacancy
−$1.9K −$1.13/SF
EGI
$23.0K $13.51/SF
− OpEx
−$6.9K −$4.05/SF
NOI
$16.1K $9.46/SF
Area
Cedar Rapids, IA
Vacancy
7.73%
Lease Rate
$14.64 /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%
$321,880
Cap Rate 7%
$229,914
Cap Rate 9%
$178,822
Alternative Uses
Best Use
Retail
$229.9K
$201.2K – $268.2K
NOI $16,094 @ 7.0% cap · market cap 3.25%
Second Best
Office B
$116.8K
$102.2K – $136.2K
NOI $8,174 @ 7.0% cap · market cap 1.65%
Theoretical Best
Specialty Retail
$246.3K
$215.5K – $287.4K
NOI $17,243 @ 7.0% cap · market cap 3.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
31
Businesses Nearby
Explore this area
Business Placement
Demographics for 52338, IA
3,457
Population
1,380
Households
2.5
Avg Household Size
45
Median Age
44%
College-Educated
98%
High-School Grad
33.4 sq mi
ZIP Area
104
Density / Sq Mi
$124,357
Median Household Income
$58,253
Median Earnings
$1,067
Median Rent
$384,600
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 - Office property with central air, asphalt and shingle exterior features, and a location between Cedar Rapids and Iowa City.
Where is this office building located?
The property is located at 2601 120th Street Cedar Rapids, IA.
What is the asking price?
The asking price for this property is $495,000.
What are key features of this property?
This property features: 1,702‑square‑foot office building; Central air conditioning; Built in 1971
