Listing Agency: CBRE | Omaha

Listed By: Talia Swanson · License #20120409 Show Phone

Source: Cbre

Added: Mar 25 Changed: Sep 30 Last Checked: Oct 14 at 8:58PM

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Investment Insights

Based on property information with market context.

The Underwood Motel & Extended Stay is a 34-unit motel located in Underwood, Iowa, adjacent to Interstate 80. Constructed in 1973 and renovated in 1991 and 2024, the two-story, L-shaped building has a total area of 12,770 square feet and is situated on a 1.37-acre lot. The motel features a manager’s office and lobby, as well as a large self-service laundry facility for guests. All rooms include refrigerators, microwaves, complimentary wi-fi, and cable TV. The property includes 9 extended stay suites with separate bedrooms and full kitchens, and 25 rooms with one queen bed and one bathroom. The motel is located next to the Underwood I-80 Truck Stop and is within walking distance of a 500,000-square-foot Jack Links distribution center and the town of Underwood. It is one of only two motels or hotels within 13 miles. The location is convenient to Council Bluffs and the Omaha, Nebraska metropolitan area. Demand generators include I-80 traffic, casinos, golf courses, the Jack Links plant, convention centers, concert venues, and the Henry Doorly Zoo. This property presents an excellent opportunity for an owner/operator.

Key Highlights

• Prime location adjacent to I‑80 (Exit 17) with high visibility and accessibility.
• Only one of two motels/hotels within a 13‑mile radius, minimizing competition.
• Recent renovations in 2024 and extensive capital improvements enhance property value and appeal.

Financial Insights

Estimated NOI and Cap Rate

NOI / Yr

$77,338

Cap Rate

6.44%

Suggested Prices Based on Cap Rates

Cap Rate 5%

$1,546,760 $1.5M

Cap Rate 7%

$1,104,829 $1.1M

Cap Rate 9%

$859,311 $859.3K

Is this asking price fair?

Market Conditions

NOI Build-Up for 12,770 SF

Gross rent

$191.6K $15.00/SF

− Vacancy

−$28.7K −$2.25/SF

EGI

$162.8K $12.75/SF

− OpEx

−$85.5K −$6.69/SF

NOI

$77.3K $6.06/SF

Area

Pottawattamie County, IA

Vacancy

15.00%

Lease Rate

$15.00 /SF/Yr

Expense Ratio

52.50%

Simulate Cap Rate and NOI

Suggested Prices Based on Cap Rates

Cap Rate 5%

$1,546,760

Cap Rate 7%

$1,104,829

Cap Rate 9%

$859,311

Alternative Uses

Best Use

Hotel Hospitality

$1.10M

$966.7K – $1.29M (±1% cap)

NOI $77,338 @ 7.0% cap · market cap 6.44%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$2.44M

$2.13M – $2.85M (±1% cap)

NOI $170,717 @ 7.0% cap · market cap 14.23%

Zoning and permitted uses should be independently verified with authorities. How Realmo checks its estimates

Property Analytics

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Current Use

Underwood Motel I80 Hotel & Motel

Suggested Use

Top Pick Parking Lot & Garage Auto Parts Store Bakery Big Box & Wholesale Store Tanning Salon Nail Salon

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

30

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 51576, IA

2,058

Population

751

Households

2.7

Avg Household Size

40

Median Age

32%

College-Educated

97%

High-School Grad

46.3 sq mi

ZIP Area

44

Density / Sq Mi

$107,679

Median Household Income

$47,314

Median Earnings

$819

Median Rent

$291,500

Median Home Value

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Similar Off Market Nearby

• Underwood Motel I80 — 26553 Magnolia Rd, Underwood, IA 51576

Frequently Asked Questions

What type of property is this?

Motel - 34-unit motel off I-80 in Underwood, Iowa.

Where is this motel located?

The property is located at 26553 Magnolia Road Underwood, IA.

What is the asking price?

The asking price for this property is $1,200,000.

What are key features of this property?

This property features: Prime location adjacent to I‑80 (Exit 17) with high visibility and accessibility.; Only one of two motels/hotels within a 13‑mile radius, minimizing competition.; Recent renovations in 2024 and extensive capital improvements enhance property value and appeal.