Riverview Apartments in Ames,
For Sale
Contact for pricing
3500 Grand Ave, Ames, IA 50010
43-unit apartment community near Iowa State University.
Property Size39,180 SF
Price / SF$72.74
Days on Market159
Property Features for 3500 Grand Ave
General Information
Standard status
Active
Size
39,180 SF
Property subtype
Multifamily
Building Details
Year Built
1977
Buildings
2
Stories
3
Units
43
Listing Agency:
CBRE - Des Moines
Listed By:
Ray Hamilton · License #S66838000
Source:
Crexi
Added: Mar 18
Changed: Aug 8
Last Checked: Aug 23 at 1:07PM
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 CBRE - Des Moines
Investment Insights
Based on property information with market context.
Riverview Apartments is a 43-unit apartment community located in Ames, Iowa. The property is situated just off Grand Ave (Highway 69), a major thoroughfare, and is within walking distance of a 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 located 30 miles north of Des Moines, at the intersection of Interstate 35 and Highway 30. The city has a population of over 65,000 and is home to Iowa State University, a member of the Big 12 Conference, with a 2025 enrollment of over 31,000 students. The property contains 21 one-bedroom, one-bathroom units and 22 two-bedroom, one-bathroom units. The total building size is 39,180 square feet, with an average in-place rent of $857.
Key Highlights
- High 7.78% cap rate for strong investment potential
- Well‑maintained 43‑unit apartment community offers immediate income
- Prime location in Ames, Iowa, a thriving city
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
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Frequently Asked Questions
What type of property is this?
Apartment building - 43-unit apartment community near Iowa State University.
Where is this apartment building located?
The property is located at 3500 Grand Ave 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 7.78% cap rate for strong investment potential; Well‑maintained 43‑unit apartment community offers immediate income; Prime location in Ames, Iowa, a thriving city
