Two-Level Office Suite with
For Sale
$2,500,000
2834 NORTHGATE DR, Iowa City, IA 52245
Office suite combines open plan work areas, offices, and cubicles across two ADA-accessible levels.
Property Size17,967 SF
Price / SF$139.14
Days on Market126
Property Features for 2834 NORTHGATE DR
General Information
Standard status
Active
Size
17,967 SF
Total Parking Spaces
85
Property subtype
Commercial
Zoning
CO1
Taxes and HOA fees
Annual Taxes
$76,512
Amenities
ReinforcedConcrete
IRREG
1.98
CountyRoad,Paved
Building Details
Year Built
1996
Stories
2
Listing Agency:
Blank & McCune Real Estate
(319) 594-2525
Listed By:
Jerome Edwards
(319) 594-2525
Source:
Pinnaclerealtyia
Added: Apr 22
Changed: Aug 25
Last Checked: Aug 25 at 5:13AM
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 Blank & McCune Real Estate
Investment Insights
Based on property information with market context.
This office suite totals 17,967 SF and is configured as a combination of open plan space, cubicles, and private offices. The suite includes an atrium in the center and an east-facing patio. The first floor is approximately 12,000 SF, and there is a walk-out lower level of approximately 6,000 SF, with both levels described as ADA accessible. Two ADA-compliant bathrooms are provided on each floor. Cubicles and furniture are Herman Miller brand and will stay at no additional fee.
Parking is available with 85 spaces. Zoning is CO-1 for office, medical, and service uses.
Parking is available with 85 spaces. Zoning is CO-1 for office, medical, and service uses.
Key Highlights
- Total office suite size of 17,967 SF across two levels with open plan work areas, cubies, and offices
- First floor about 12,000 SF plus walk‑out lower level about 6,000 SF, with both levels ADA accessible
- Two ADA‑compliant bathrooms on each floor for a total of four ADA‑compliant bathrooms
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
$206,171
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
8.25%
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%
$4,123,420
$4.1M
Cap Rate 7%
$2,945,300
$2.9M
Cap Rate 9%
$2,290,789
$2.3M
Market Conditions
NOI Build-Up for 17,967 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
$323.4K $18.00/SF
− Vacancy
−$48.5K −$2.70/SF
EGI
$274.9K $15.30/SF
− OpEx
−$68.7K −$3.82/SF
NOI
$206.2K $11.48/SF
Area
Johnson County, IA
Vacancy
15.00%
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%
$4,123,420
Cap Rate 7%
$2,945,300
Cap Rate 9%
$2,290,789
Alternative Uses
Best Use
Office B
$2.95M
$2.58M – $3.44M
NOI $206,171 @ 7.0% cap · market cap 8.25%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.90M
$3.42M – $4.55M
NOI $273,213 @ 7.0% cap · market cap 10.93%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
241
Businesses Nearby
Explore this area
Business Placement
Demographics for 52245, IA
21,874
Population
10,210
Households
2.1
Avg Household Size
34
Median Age
68%
College-Educated
99%
High-School Grad
8.4 sq mi
ZIP Area
2,604
Density / Sq Mi
$75,876
Median Household Income
$30,273
Median Earnings
$1,215
Median Rent
$293,300
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Office suite combines open plan work areas, offices, and cubicles across two ADA-accessible levels.
Where is this office units located?
The property is located at 2834 NORTHGATE DR Iowa City, IA.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: Total office suite size of 17,967 SF across two levels with open plan work areas, cubies, and offices; First floor about 12,000 SF plus walk‑out lower level about 6,000 SF, with both levels ADA accessible; Two ADA‑compliant bathrooms on each floor for a total of four ADA‑compliant bathrooms
