Freestanding Restaurant with
For Sale
Contact for pricing
2607 Beaver Ave, Des Moines, IA 50310
Restaurant property includes a grease trap and dedicated on-site parking.
Property Size2,134 SF
Price / SF$351.45
Days on Market8
Property Features for 2607 Beaver Ave
General Information
Standard status
Active
Size
2,134 SF
Property subtype
RETAIL
Listing Agency:
Terrus Real Estate Group
(515) 314-7779
Listed By:
Tim Wirta · License #B57526000
(515) 314-7779
Source:
Moodyscre
Added: Aug 10
Changed: Aug 13
Last Checked: Aug 16 at 8:08AM
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 Terrus Real Estate Group
Investment Insights
Based on property information with market context.
This freestanding restaurant property comprises 2,134 square feet and includes the furniture, fixtures, and equipment. A grease trap is part of the property’s existing restaurant infrastructure, while 10 on-site parking stalls support customer and staff parking.
The property is located at 2607 Beaver Ave in the Beaverdale area of Des Moines, Iowa. Its standalone configuration and included FF&E provide a defined restaurant asset at an established address.
The property is located at 2607 Beaver Ave in the Beaverdale area of Des Moines, Iowa. Its standalone configuration and included FF&E provide a defined restaurant asset at an established address.
Key Highlights
- 2,134‑square‑foot freestanding restaurant property
- Furniture, fixtures, and equipment included
- Existing grease trap
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
$25,275
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
3.37%
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%
$505,500
$505.5K
Cap Rate 7%
$361,071
$361.1K
Cap Rate 9%
$280,833
$280.8K
Market Conditions
NOI Build-Up for 2,134 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
$35.9K $16.80/SF
− Vacancy
−$2.2K −$1.01/SF
EGI
$33.7K $15.79/SF
− OpEx
−$8.4K −$3.95/SF
NOI
$25.3K $11.84/SF
Area
Des Moines, IA
Vacancy
6.00%
Lease Rate
$16.80 /SF/Yr
Expense Ratio
25.00%
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%
$505,500
Cap Rate 7%
$361,071
Cap Rate 9%
$280,833
Alternative Uses
Best Use
Specialty Retail
$361.1K
$315.9K – $421.3K
NOI $25,275 @ 7.0% cap · market cap 3.37%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$525.6K
$459.9K – $613.2K
NOI $36,789 @ 7.0% cap · market cap 4.91%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
392
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 50310, IA
30,754
Population
14,162
Households
2.2
Avg Household Size
37
Median Age
36%
College-Educated
86%
High-School Grad
8.0 sq mi
ZIP Area
3,844
Density / Sq Mi
$74,473
Median Household Income
$46,091
Median Earnings
$1,043
Median Rent
$213,800
Median Home Value
Market
Vacancy Rate% for Retail in Des Moines, IA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Restaurant property includes a grease trap and dedicated on-site parking.
Where is this conventional restaurant located?
The property is located at 2607 Beaver Ave Des Moines, IA.
What is the asking price?
The asking price for this property is $750,000.
What are key features of this property?
This property features: 2,134‑square‑foot freestanding restaurant property; Furniture, fixtures, and equipment included; Existing grease trap
