Fully Occupied Medical
For Sale
$2,175,000
2740 1st Avenue NE, Cedar Rapids, IA 52402
Healthcare-oriented office property with full occupancy, on-site parking, and Trad Mix zoning along a major commercial corridor.
Property Size15,003 SF
Lot Size0.71 Acres
Price / SF$221.94
Days on Market361
Property Features for 2740 1st Avenue NE
General Information
Standard status
Active
Size
15,003 SF
Lot size
0.71 Acres
Property subtype
Commercial
Zoning
Trad Mix
Occupancy
100%
Net Operating Income
$146,828
Additional Details
Cap Rate
6.75%
Taxes and HOA fees
Annual Taxes
$25,970
Amenities
Concrete
Yes
1
Building,Land
Public
0.705
30710
Sprinkler/Irrigation
Building Details
Year Built
1968
Buildings
1
Stories
1
Building Size
15,003 SF
Tenancy
Multi
Listing Agency:
Fischels Commercial Group
(319) 721-6099
Listed By:
Ryan Eighme
(319) 721-6099
Source:
Pinnaclerealtyia
Added: Sep 4, 2025
Changed: Aug 29
Last Checked: Aug 29 at 2:13PM
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 Fischels Commercial Group
Investment Insights
Based on property information with market context.
Located at 2740 1st Avenue NE in Cedar Rapids, this medical office property was built in 1968 and is fully occupied by healthcare tenants. The building sits on a 0.705-acre parcel with on-site parking, public access, and sprinkler/irrigation features. Its Trad Mix zoning supports the property’s medical office use.
The site is positioned along 1st Avenue NE, identified as a main commercial corridor, providing a central Cedar Rapids setting for an occupied healthcare property. The asset is offered at a 6.75% CAP rate, with established tenants in place and an NOI of $146,828.76 excluded from this description’s pricing-sensitive detail.
The site is positioned along 1st Avenue NE, identified as a main commercial corridor, providing a central Cedar Rapids setting for an occupied healthcare property. The asset is offered at a 6.75% CAP rate, with established tenants in place and an NOI of $146,828.76 excluded from this description’s pricing-sensitive detail.
Key Highlights
- 100% occupied medical office property
- 0.705‑acre parcel at 2740 1st Avenue NE, Cedar Rapids, IA 52402
- 6.75% CAP rate
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
$73,030
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
3.36%
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%
$1,460,600
$1.5M
Cap Rate 7%
$1,043,286
$1.0M
Cap Rate 9%
$811,444
$811.4K
Market Conditions
NOI Build-Up for 9,800 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
$135.2K $13.80/SF
− Vacancy
−$13.5K −$1.38/SF
EGI
$121.7K $12.42/SF
− OpEx
−$48.7K −$4.97/SF
NOI
$73.0K $7.45/SF
Area
Cedar Rapids, IA
Vacancy
10.00%
Lease Rate
$13.80 /SF/Yr
Expense Ratio
40.00%
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%
$1,460,600
Cap Rate 7%
$1,043,286
Cap Rate 9%
$811,444
Alternative Uses
Best Use
Healthcare Medical
$1.04M
$912.9K – $1.22M
NOI $73,030 @ 7.0% cap · market cap 3.36%
Second Best
Office B
$672.3K
$588.3K – $784.4K
NOI $47,064 @ 7.0% cap · market cap 2.16%
Theoretical Best
Specialty Retail
$1.42M
$1.24M – $1.65M
NOI $99,286 @ 7.0% cap · market cap 4.56%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
415
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 52402, IA
42,072
Population
19,848
Households
2.1
Avg Household Size
36
Median Age
41%
College-Educated
95%
High-School Grad
13.7 sq mi
ZIP Area
3,071
Density / Sq Mi
$71,319
Median Household Income
$41,753
Median Earnings
$992
Median Rent
$188,700
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Dr. Kenneth L. Paulsen — 117 33rd st ne, cedar rapids, ia 52402
- Kenwood Animal Clinic — 117 33rd St NE, Cedar Rapids, IA 52402
- Heartland Animal Hospital Cedar Rapids — 3318 1st Ave NE Suite A, Cedar Rapids, IA 52402
Frequently Asked Questions
What type of property is this?
Medical Office Space - Healthcare-oriented office property with full occupancy, on-site parking, and Trad Mix zoning along a major commercial corridor.
Where is this medical office space located?
The property is located at 2740 1st Avenue NE Cedar Rapids, IA.
What is the asking price?
The asking price for this property is $2,175,000.
What are key features of this property?
This property features: 100% occupied medical office property; 0.705‑acre parcel at 2740 1st Avenue NE, Cedar Rapids, IA 52402; 6.75% CAP rate
