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    Underwood Motel & Extended Stay Title is generated by Realmo AI

    26553 Magnolia Road, Underwood, IA 51576

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    For Sale
    $1,200,000

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

    Type:Hospitality
    Property size:
    12,770 SF
    Lot size:
    1.37 Acres
    Price / SF:
    $93/SF
    Added:
    Mar 25, 2026
    Days on Market:
    59
    Last Refresh:
    Mar 18 at 8:41 am

    Property Features for 26553 Magnolia Road

    General Information

    Standard status
    Active
    Size
    12,770 SF
    Lot size
    1.37 Acres
    Property subtype
    Hospitality

    We can help!

    Listing Contact
    Talia Swanson
    Talia Swanson

    Listing agent Talia Swanson License #20120409

    Listing office CBRE | Omaha

    Listing date Mar 25, 2026

    Source Cbre

    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 CBRE | Omaha

    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.
    • 34 rooms including 9 extended stay suites with full kitchens, catering to diverse traveler needs.
    • Proximity to demand generators including I‑80 traffic, casinos, Jack Links plant, and Omaha attractions.
    • Amenities include refrigerators, microwaves, complimentary Wi‑Fi, cable TV, and guest laundry.

    Overview

    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.

    Financial Insights

    Value Estimation Calculated for Hotel Hospitality

    Conservative
    $859.3K
    NOI $77,338 @ 9.00% cap · cautious / downside scenario
    Moderate
    $1.10M
    NOI $77,338 @ 7.00% cap · market / base-case scenario
    Aggressive
    $1.55M
    NOI $77,338 @ 5.00% cap · optimistic / upside scenario

    NOI & Cap Rate Calculator

    NOI Build-Up
    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.
         Calculated for Hotel Hospitality

    Component $ $/SF
    Gross rent $191.6k $15.00
    − Vacancy −$28.7k −$2.25
    EGI $162.8k $12.75
    − OpEx −$85.5k −$6.69
    NOI $77.3k $6.06
    12,770 SF · lease $15.00/SF/yr · vacancy 15.00% · expense 52.50%

    Alternative Use Scenarios

    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 local authorities.
    Property Profile Location Intelligence

    Current Use by Public Records

    Underwood Motel I80 Hotel & Motel

    Suggested Use

    Restaurant Spa & Massage Center Big Box & Wholesale Store Auto Repair Shop Hair Salon Nail Salon Hotel & Motel Auto Parts Store Grocery & Convenience Store Bar & Pub

    Zoning and permitted uses should be independently verified with local authorities.

    Similar Places Nearby

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

    Location Insight

    • Map
    • Local Demand
    City
    Underwood
    County
    Pottawattamie
    State
    Iowa
    Longitude
    -95.6787421
    Latitude
    41.3761499

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    FAQs

    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.
    (402) 697-5806
    We can help!
    Listing Contact
    Talia Swanson
    Talia Swanson
    Real Estate License ID: 20120409
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    Realmo Value Estimations

    Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods. 

    Disclaimer

    These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.
    Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.
    By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.

    AI approach

    Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.

    Realmo CapRate Calculation

    Realmo calculates the Capitalization Rate (Cap Rate) to help estimate a property's potential return on investment. The Cap Rate is a fundamental metric in commercial real estate that measures the relationship between a property's net operating income and its market value.

    How We Calculate Cap Rate

    Cap Rate Formula:
    Cap Rate (%) = (Net Operating Income / Property Value) × 100

    Net Operating Income (NOI) Formula:
    NOI = Area × Lease Rate × (1 - Vacancy Rate) × (1 - Operating Expense Ratio)

    Components

    Net Operating Income (NOI) represents the annual income a property generates after operating expenses:

    • Area: Building square footage from property records
    • Lease Rate: Annual $/sqft based on market data for the property type and geographic location
    • Vacancy Rate: Percentage of unoccupied space based on market data for the property type and location
    • Operating Expense Ratio: Operating costs as a percentage of income, varies by property type

    Property Value is derived from:

    • Recent sale price (if available)
    • Statistical models using comparable sales
    • AI-powered valuation estimates

    Example Calculation

    For a 100,000 sqft Office Building:

    • Lease Rate: $25.00/sqft/year (market data for Office in this area)
    • Vacancy Rate: 8% (market data for Office in this area)
    • Operating Expense Ratio: 35% (typical for Office properties)
    • Property Value: $15,000,000

    Step 1: Calculate NOI

    NOI = 100,000 × $25.00 × (1 - 0.08) × (1 - 0.35)
    NOI = 100,000 × $25.00 × 0.92 × 0.65
    NOI = $1,495,000/year

    Step 2: Calculate Cap Rate

    Cap Rate = ($1,495,000 / $15,000,000) × 100
    Cap Rate = 9.97%

    Property Type Considerations

    Net Operating Income calculations vary by property type due to different operating expense ratios:

    • Office: Higher expenses (30-40%) for HVAC, utilities, maintenance
    • Retail: Moderate expenses (25-35%) for common area maintenance
    • Industrial/Warehouse: Lower expenses (15-25%) for minimal tenant services
    • Multifamily: Moderate expenses (35-45%) including property management
    • Self-Storage: Lower expenses (25-35%) due to minimal maintenance

    Market lease rates and vacancy rates are specific to each property type and geographic location, reflecting local market conditions.

    Disclaimer

    These calculations are estimates for informational purposes only and should not be used as a substitute for professional financial analysis or appraisal.

    • Cap Rate calculations depend on market data that may change over time
    • Actual operating expenses, lease rates, and vacancy rates may differ from market averages
    • Individual property conditions, lease terms, and tenant quality significantly impact actual NOI
    • Property value estimates are approximations and not official appraisals
    • Cap rates vary widely by market, property condition, and investment risk profile

    Professional Guidance Recommended: Before making any investment or financial decisions, consult with licensed appraisers, commercial real estate brokers, and financial advisors who can evaluate your specific property and circumstances.
    By using this feature, you acknowledge that Realmo is not responsible for investment decisions or actions taken based on these estimates.

    Cap approach

    Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.

    Comparable approach

    Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.

    Relative

    Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.

    Geo

    Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.

    Stat Estimate

    This method estimates value based on actual market adjusted recent (~5 years) sales of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all similar sales ($/sqft) are above this value
    • Range-to: 75% of all similar sales ($/sqft) are below this value
    AI Estimate

    This method estimates value based on AI market estimation of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all estimations ($/sqft) are above this value
    • Range-to: 75% of all estimations ($/sqft) are below this value
    Alternative use

    Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.

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