Breakfast Diner with
For Sale
$250,000
2720 Willis Ave, Perry, IA 50220
Building and diner equipment are offered together as-is, with several improvements completed since 2016.
Property Size1,152 SF
Price / SF$217.01
Days on Market714
Property Features for 2720 Willis Ave
General Information
Standard status
Active
Size
1,152 SF
Property subtype
Commercial
Additional Details
Equipment Included
Yes
Building Details
Year Built
1970
Listing Agency:
Realty ONE Group Impact
(515) 770-3895
Listed By:
Wayde Burkhart (515) 770-3895
Source:
Desmoineshomesforsale
Added: Sep 16, 2024
Changed: Aug 30
Last Checked: Aug 30 at 7:56AM
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 Realty ONE Group Impact
Investment Insights
Based on property information with market context.
This breakfast diner includes the building and equipment in an as-is sale. The property contains 1,152 square feet and was constructed in 1970, providing an established physical setting for restaurant operations.
Improvements completed since 2016 include work to the parking lot, flooring, and much of the diner equipment. The property is located at 2720 Willis Ave in Perry, Iowa, within a small-town community.
Improvements completed since 2016 include work to the parking lot, flooring, and much of the diner equipment. The property is located at 2720 Willis Ave in Perry, Iowa, within a small-town community.
Key Highlights
- 1,152‑square‑foot breakfast diner building
- Building and diner equipment included in the sale
- Offered together as‑is
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
$14,308
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
5.72%
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%
$286,160
$286.2K
Cap Rate 7%
$204,400
$204.4K
Cap Rate 9%
$158,978
$159.0K
Market Conditions
NOI Build-Up for 1,152 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
$20.7K $18.00/SF
− Vacancy
−$1.7K −$1.44/SF
EGI
$19.1K $16.56/SF
− OpEx
−$4.8K −$4.14/SF
NOI
$14.3K $12.42/SF
Area
Dallas County, IA
Vacancy
8.00%
Lease Rate
$18.00 /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%
$286,160
Cap Rate 7%
$204,400
Cap Rate 9%
$158,978
Alternative Uses
Best Use
Specialty Retail
$204.4K
$178.9K – $238.5K
NOI $14,308 @ 7.0% cap · market cap 5.72%
Second Best
—
—
no second resolved use
Theoretical Best
Flex RnD
$1.11M
$970.3K – $1.29M
NOI $77,626 @ 7.0% cap · market cap 31.05%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
171
Businesses Nearby
2k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 93%
Hotels & Casinos 7%
Pizza Hut
Dining
1,986 visits/mo
0.2 miles
Super 8 Perry IA
Hotels & Casinos
161 visits/mo
0.5 miles
Demographics for 50220, IA
9,045
Population
3,925
Households
2.3
Avg Household Size
37
Median Age
17%
College-Educated
87%
High-School Grad
100.5 sq mi
ZIP Area
90
Density / Sq Mi
$68,750
Median Household Income
$38,195
Median Earnings
$883
Median Rent
$146,200
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.
Similar Off Market Nearby
- The Lou's Diner — 2720 Willis Ave, Perry, IA 50220
Frequently Asked Questions
What type of property is this?
Breakfast & diner - Building and diner equipment are offered together as-is, with several improvements completed since 2016.
Where is this breakfast & diner located?
The property is located at 2720 Willis Ave Perry, IA.
What is the asking price?
The asking price for this property is $250,000.
What are key features of this property?
This property features: 1,152‑square‑foot breakfast diner building; Building and diner equipment included in the sale; Offered together as‑is
