CVS Pharmacy For
For Sale
Contact for pricing
2639 Avenue L, Fort Madison, IA 52627
NNN leased CVS Pharmacy with approximately 8 years remaining.
Property Size14,820 SF
Price / SF$235.96
Days on Market189
Property Features for 2639 Avenue L
General Information
Standard status
Active
Size
14,820 SF
Property subtype
Retail
Occupancy
100%
Lease Type
Absolute Net
Net Operating Income
$285,000
Building Details
Year Built
2008
Tenancy
Single
Listing Agency:
JLL - Dallas | Cedar Springs, Texas
Listed By:
Caroline Pinkston · License #601565
Source:
Crexi
Added: Feb 3
Changed: Aug 8
Last Checked: Aug 11 at 7:12AM
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 JLL - Dallas | Cedar Springs, Texas
Investment Insights
Based on property information with market context.
The offering is for the opportunity to acquire a CVS Pharmacy located at 2639 Avenue L, Fort Madison, IA 52627. The property is a retail space occupied by a tenant operating under an absolute NNN lease. Approximately 8 years of the primary lease term remain. The property size is 14820 square feet.
Key Highlights
- Absolute NNN lease structure provides a hands‑off investment.
- Approximately 8 years of primary lease term remaining offers stable income.
- CVS Pharmacy tenant ensures reliable occupancy.
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
$157,538
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
4.50%
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%
$3,150,760
$3.2M
Cap Rate 7%
$2,250,543
$2.3M
Cap Rate 9%
$1,750,422
$1.8M
Market Conditions
NOI Build-Up for 14,820 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
$229.4K $15.48/SF
− Vacancy
−$19.4K −$1.31/SF
EGI
$210.1K $14.17/SF
− OpEx
−$52.5K −$3.54/SF
NOI
$157.5K $10.63/SF
Area
Lee County, IA
Vacancy
8.44%
Lease Rate
$15.48 /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%
$3,150,760
Cap Rate 7%
$2,250,543
Cap Rate 9%
$1,750,422
Alternative Uses
Best Use
Specialty Retail
$2.25M
$1.97M – $2.63M
NOI $157,538 @ 7.0% cap · market cap 4.50%
Second Best
Retail
$2.10M
$1.84M – $2.45M
NOI $147,036 @ 7.0% cap · market cap 4.20%
Theoretical Best
Mixed Use
$2.52M
$2.20M – $2.93M
NOI $176,062 @ 7.0% cap · market cap 5.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
139
Businesses Nearby
32k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 51%
Shops & Services 48%
Home Improvements & Furnishings 1%
McDonald's
Dining
16,458 visits/mo
0.5 miles
Casey's General Store
Shops & Services
7,075 visits/mo
0.2 miles
Dollar Tree
Shops & Services
6,925 visits/mo
0.3 miles
AutoZone
Shops & Services
1,380 visits/mo
0.1 miles
Rent A Center
Home Improvements & Furnishings
355 visits/mo
0.3 miles
Demographics for 52627, IA
12,350
Population
6,134
Households
2
Avg Household Size
43
Median Age
21%
College-Educated
95%
High-School Grad
63.9 sq mi
ZIP Area
193
Density / Sq Mi
$54,864
Median Household Income
$39,058
Median Earnings
$830
Median Rent
$111,700
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Drug store - NNN leased CVS Pharmacy with approximately 8 years remaining.
Where is this drug store located?
The property is located at 2639 Avenue L Fort Madison, IA.
What is the asking price?
The asking price for this property is $3,497,000.
What are key features of this property?
This property features: Absolute NNN lease structure provides a hands‑off investment.; Approximately 8 years of primary lease term remaining offers stable income.; CVS Pharmacy tenant ensures reliable occupancy.
