Valley Junction Mixed-Use
For Sale
Contact for pricing
Pending
324 1st St, West Des Moines, IA 50265
Two meticulously maintained buildings with retail and office spaces.
Property Size4,209 SF
Lot Size0.44 Acres
Days on Market694
Property Features for 324 1st St
General Information
Standard status
Pending
Size
4,209 SF
Lot size
0.44 Acres
Property subtype
Retail, Office, Mixed Use
Zoning
CZ3, VJC
Investment Type
Core+
Building Details
Year Built
1939
Year Renovated
2004
Buildings
2
Units
4
Tenancy
Multi
Listing Agency:
NAI Iowa Realty Commercial - Des Moines
Listed By:
Dan Dempsey · License #IA S70567000
Source:
Crexi
Added: Oct 11, 2024
Changed: Aug 23
Last Checked: Aug 14 at 5:59AM
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 NAI Iowa Realty Commercial - Des Moines
Investment Insights
Based on property information with market context.
Located in the Valley Junction neighborhood, this property features two buildings: a retail space currently used as a furnished rental, and a multi-unit office/retail building. The interiors include furnishings and artwork. The property has landscaping with trees, shrubs, and perennials. With retail frontage along 1st Street (Highway 28), the location has traffic of over 25,200 average annual daily traffic (AADT) as of 2023. A front marquee sign is situated at one of the main entrances to Valley Junction. The 0.44-acre lot offers opportunities for commercial uses, including retail and office spaces. A separate garage has its own utility connections. There are 15 private off-street parking spaces and on-street parking. It is zoned VJC with conditional CZ3 zoning. The main building has a fire/smoke alarm system and a sprinkler system. The property is situated within the Historic West Des Moines Boundary, making it eligible for property improvement and regulatory compliance funds. The property size is 4209 square feet.
Key Highlights
- Prime location in Valley Junction with high visibility on 1st Street/Highway 28 (25,200 AADT).
- Two meticulously maintained buildings: retail space (furnished rental) and a multi‑unit office/retail building.
- Prominent front marquee signage at a main entrance to Valley Junction.
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
$41,669
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
7.25%
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%
$833,380
$833.4K
Cap Rate 7%
$595,271
$595.3K
Cap Rate 9%
$462,989
$463.0K
Market Conditions
NOI Build-Up for 4,209 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
$75.8K $18.00/SF
− Vacancy
−$9.1K −$2.16/SF
EGI
$66.7K $15.84/SF
− OpEx
−$25.0K −$5.94/SF
NOI
$41.7K $9.90/SF
Area
Polk County, IA
Vacancy
12.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
37.50%
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%
$833,380
Cap Rate 7%
$595,271
Cap Rate 9%
$462,989
Alternative Uses
Best Use
Mixed Use
$595.3K
$520.9K – $694.5K
NOI $41,669 @ 7.0% cap · market cap 7.25%
Second Best
Retail
$554.6K
$485.3K – $647.0K
NOI $38,820 @ 7.0% cap · market cap 6.75%
Theoretical Best
Flex RnD
$4.05M
$3.55M – $4.73M
NOI $283,619 @ 7.0% cap · market cap 49.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
473
Businesses Nearby
Explore this area
Business Placement
Demographics for 50265, IA
32,187
Population
15,104
Households
2.1
Avg Household Size
38
Median Age
48%
College-Educated
95%
High-School Grad
19.3 sq mi
ZIP Area
1,668
Density / Sq Mi
$84,588
Median Household Income
$49,785
Median Earnings
$1,065
Median Rent
$267,600
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.
Frequently Asked Questions
What type of property is this?
Mixed-use property - Two meticulously maintained buildings with retail and office spaces.
Where is this mixed-use property located?
The property is located at 324 1st St West Des Moines, IA.
What is the asking price?
The asking price for this property is $575,000.
What are key features of this property?
This property features: Prime location in Valley Junction with high visibility on 1st Street/Highway 28 (25,200 AADT).; Two meticulously maintained buildings: retail space (furnished rental) and a multi‑unit office/retail building.; Prominent front marquee signage at a main entrance to Valley Junction.
