Restored Mixed-Use
For Sale
$575,000
325 E Main St, Ottumwa, IA 52501
Downtown property combines an open commercial main level with three remodeled upstairs apartments.
Property Size3,500 SF
Price / SF$164.29
Days on Market10
Property Features for 325 E Main St
General Information
Standard status
Active
Size
3,500 SF
Property subtype
Residential Income
Taxes and HOA fees
Annual Taxes
$8,340
Amenities
large storefront windows
exposed brick walls
refinished hardwood floors
new kitchenette area
men's and women's restrooms
Building Details
Buildings
1
Construction
brick
Tenancy
Single
Listing Agency:
RE/MAX Pride Oskaloosa
(641) 676-3456
Listed By:
Jason Carter · License #B61335000
(515) 708-0615
Source:
Exprealty
Added: Sep 3
Changed: Sep 11
Last Checked: Sep 11 at 2:38PM
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 RE/MAX Pride Oskaloosa
Investment Insights
Based on property information with market context.
Located at 325 E Main St in downtown Ottumwa, this 3,500-square-foot mixed-use property includes a fully restored commercial building with an open main level. Large storefront windows provide display space, while exposed brick, refinished hardwood floors, a new kitchenette, and separate men's and women's restrooms define the interior. The commercial floor offers a combination of traditional architectural character and updated functional improvements.
Three remodeled apartments occupy the upper level: one two-bedroom, one-bath unit and two one-bedroom, one-bath units. Utilities are paid by the tenants. The property brings together commercial space and residential units within a single downtown building.
Three remodeled apartments occupy the upper level: one two-bedroom, one-bath unit and two one-bedroom, one-bath units. Utilities are paid by the tenants. The property brings together commercial space and residential units within a single downtown building.
Key Highlights
- 3,500‑square‑foot mixed‑use building at 325 E Main St, Ottumwa
- Open commercial main level with large storefront windows
- Exposed brick walls and refinished hardwood floors
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
$34,650
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
6.03%
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%
$693,000
$693.0K
Cap Rate 7%
$495,000
$495.0K
Cap Rate 9%
$385,000
$385.0K
Market Conditions
NOI Build-Up for 3,500 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
$63.0K $18.00/SF
− Vacancy
−$7.6K −$2.16/SF
EGI
$55.4K $15.84/SF
− OpEx
−$20.8K −$5.94/SF
NOI
$34.7K $9.90/SF
Area
Wapello 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%
$693,000
Cap Rate 7%
$495,000
Cap Rate 9%
$385,000
Alternative Uses
Best Use
Mixed Use
$495.0K
$433.1K – $577.5K
NOI $34,650 @ 7.0% cap · market cap 6.03%
Second Best
Retail
$346.7K
$303.4K – $404.5K
NOI $24,268 @ 7.0% cap · market cap 4.22%
Theoretical Best
Office A
$765.6K
$669.9K – $893.2K
NOI $53,592 @ 7.0% cap · market cap 9.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
934
Businesses Nearby
Explore this area
Business Placement
Demographics for 52501, IA
30,313
Population
13,654
Households
2.2
Avg Household Size
38
Median Age
20%
College-Educated
87%
High-School Grad
225.3 sq mi
ZIP Area
135
Density / Sq Mi
$59,091
Median Household Income
$40,173
Median Earnings
$955
Median Rent
$109,600
Median Home Value
Check the figures for this property
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Market
Vacancy Rate% for Multifamily in Midwest region
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Downtown property combines an open commercial main level with three remodeled upstairs apartments.
Where is this mixed-use property located?
The property is located at 325 E Main St Ottumwa, 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: 3,500‑square‑foot mixed‑use building at 325 E Main St, Ottumwa; Open commercial main level with large storefront windows; Exposed brick walls and refinished hardwood floors
