Ames Multifamily Investment
For Sale
$2,850,000
3500 Grand Avenue, Ames, IA 50010
43-unit apartment community in Ames, Iowa, near Iowa State.
Property Size39,180 SF
Price / SF$72.74
Days on Market149
Property Features for 3500 Grand Avenue
General Information
Standard status
Active
Size
39,180 SF
Property subtype
Multifamily
Listing Agency:
(515) 415-6111
Listed By:
Ray Hamilton
(515) 415-6111
Source:
Cbre
Added: Mar 25
Changed: Aug 8
Last Checked: Aug 8 at 2:37PM
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 Ray Hamilton
Investment Insights
Based on property information with market context.
Riverview Apartments is a 43-unit apartment community located in Ames, Iowa. Constructed in 1977, the property consists of 21 one-bedroom, one-bathroom units and 22 two-bedroom, one-bathroom units, totaling 39,180 square feet. Approximately 50% of the units have been renovated. The property benefits from a new roof and new siding, both installed in 2023. The property is strategically positioned just off Grand Avenue (Highway 69), a major thoroughfare in Ames. It is within walking distance of the Walmart Supercenter, Dairy Queen, Casey’s, Subway, Northern Lights Retail Center, and North Grand Mall, which offers a variety of retail, entertainment, dining, and service options. Ames is a thriving city in the heart of the Midwest with a population of over 65,000. Ames is home to Iowa State University, a member of the Big 12 Conference, with 2025 enrollment just over 31,000 students. Located 30 miles north of Des Moines, Ames is strategically situated at the intersection of Interstate 35 and Highway 30.
Key Highlights
- High Cap Rate: Attractive 7.78% cap rate.
- Recent Renovations: New roof and siding in 2023, approximately 50% of units renovated.
- Well‑Maintained 43‑unit apartment community in good condition.
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
$262,025
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
9.19%
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%
$5,240,500
$5.2M
Cap Rate 7%
$3,743,214
$3.7M
Cap Rate 9%
$2,911,389
$2.9M
Market Conditions
NOI Build-Up for 39,180 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
$503.1K $12.84/SF
− Vacancy
−$26.7K −$0.68/SF
EGI
$476.4K $12.16/SF
− OpEx
−$214.4K −$5.47/SF
NOI
$262.0K $6.69/SF
Area
Story County, IA
Vacancy
5.30%
Lease Rate
$12.84 /SF/Yr
Expense Ratio
45.00%
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%
$5,240,500
Cap Rate 7%
$3,743,214
Cap Rate 9%
$2,911,389
Alternative Uses
Best Use
Apartment 5plus
$3.74M
$3.28M – $4.37M
NOI $262,025 @ 7.0% cap · market cap 9.19%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$9.16M
$8.01M – $10.68M
NOI $640,922 @ 7.0% cap · market cap 22.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
368
Businesses Nearby
Explore this area
Business Placement
Demographics for 50010, IA
32,552
Population
14,732
Households
2.2
Avg Household Size
30
Median Age
59%
College-Educated
98%
High-School Grad
60.3 sq mi
ZIP Area
540
Density / Sq Mi
$65,701
Median Household Income
$27,672
Median Earnings
$981
Median Rent
$243,200
Median Home Value
Market
Vacancy Rate% for Multifamily 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?
Apartment building - 43-unit apartment community in Ames, Iowa, near Iowa State.
Where is this apartment building located?
The property is located at 3500 Grand Avenue Ames, IA.
What is the asking price?
The asking price for this property is $2,850,000.
What are key features of this property?
This property features: High Cap Rate: Attractive 7.78% cap rate.; Recent Renovations: New roof and siding in 2023, approximately 50% of units renovated.; Well‑Maintained 43‑unit apartment community in good condition.
