Stand-Alone NNN Retail
For Sale
Contact for pricing
3475 Westdale Drive Southwest, Cedar Rapids, IA
Stand-alone NNN Burlington Coat Factory with 6.5 years remaining on lease.
Property Size40,400 SF
Lot Size1.39 Acres
Price / SF$163.26
Days on Market716
Property Features for 3475 Westdale Drive Southwest
General Information
Standard status
Active
Size
40,400 SF
Lot size
1.39 Acres
Property subtype
RETAIL
Listing Agency:
Cushman & Wakefield
(319) 431-1898
Listed By:
Ryan Fitzpatrick · License #B24276000
(319) 431-1898
Source:
Moodyscre
Added: Aug 26, 2024
Changed: Aug 8
Last Checked: Aug 8 at 12:17PM
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 Cushman & Wakefield
Investment Insights
Based on property information with market context.
This stand-alone NNN Burlington Coat Factory offers an investment opportunity. The property was originally built in 1979 and is located within the Westdale shopping center, which underwent a transformative redevelopment in 2014. The property has 6.5 years remaining on an original 15-year lease, with a 10% rental increase scheduled in 3 years. Westdale is strategically positioned on Edgewood Road, providing convenient access to Highway 30 and Interstate I-380. The shopping center spans 40 acres and features five major big box retail buildings, along with numerous development pads. The center is currently 100% occupied and includes tenants such as PetSmart, Ross Dress for Less, Michael’s, Burlington, and JCPenney, drawing from local, regional, and national markets. The property contains 40,400 square feet.
Key Highlights
- Stand‑alone NNN Burlington Coat Factory property offers a stable, low‑management investment.
- Strategic location on Edgewood Road with easy access to Highway 30 and Interstate I‑380.
- Existing lease with 6.5 years remaining and a 10% rental increase in 3 years.
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
$382,016
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
5.79%
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%
$7,640,320
$7.6M
Cap Rate 7%
$5,457,371
$5.5M
Cap Rate 9%
$4,244,622
$4.2M
Market Conditions
NOI Build-Up for 40,400 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
$591.5K $14.64/SF
− Vacancy
−$45.7K −$1.13/SF
EGI
$545.7K $13.51/SF
− OpEx
−$163.7K −$4.05/SF
NOI
$382.0K $9.46/SF
Area
Cedar Rapids, IA
Vacancy
7.73%
Lease Rate
$14.64 /SF/Yr
Expense Ratio
30.00%
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%
$7,640,320
Cap Rate 7%
$5,457,371
Cap Rate 9%
$4,244,622
Alternative Uses
Best Use
Retail
$5.46M
$4.78M – $6.37M
NOI $382,016 @ 7.0% cap · market cap 5.79%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$5.85M
$5.12M – $6.82M
NOI $409,302 @ 7.0% cap · market cap 6.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
682
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
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?
Storefront property - Stand-alone NNN Burlington Coat Factory with 6.5 years remaining on lease.
Where is this storefront property located?
The property is located at 3475 Westdale Drive Southwest Cedar Rapids, IA.
What is the asking price?
The asking price for this property is $6,595,555.
What are key features of this property?
This property features: Stand‑alone NNN Burlington Coat Factory property offers a stable, low‑management investment.; Strategic location on Edgewood Road with easy access to Highway 30 and Interstate I‑380.; Existing lease with 6.5 years remaining and a **10% rental increase in 3 years.**
