4-Unit Quadplex Near Drake
For Sale
$285,000
3903 University Avenue Des, Des Moines, IA 50311
Occupied multifamily property with separately metered tenant utilities and owner-paid water service.
Property Size2,816 SF
Days on Market207
Property Features for 3903 University Avenue Des
General Information
Standard status
Active
Size
2,816 SF
Property subtype
Multi-Family
Additional Details
Gross Income
$40,716
Multifamily Units
4
Amenities
Baseboard
Electric
Window Unit(s)
Refrigerator
Stove
Electricity Available, Natural Gas Available, Water Available, Asphalt, Shingle
Building Details
Building Size
2,816 SF
Year Built
1918
Listing Agency:
Greater Des Moines
(515) 612-6013
Listed By:
Darson Grantham · License #S68402000
(515) 612-6013
Source:
Kw
Added: Feb 4
Changed: Aug 29
Last Checked: Aug 29 at 1:24PM
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 Greater Des Moines
Investment Insights
Based on property information with market context.
This four-unit multifamily property was built in 1918 and is currently occupied by tenants. Interior features include baseboard and electric heat, window units, refrigerators, and stoves. The exterior includes asphalt and shingle components, with electricity, natural gas, and water available.
The property is positioned near Drake University and downtown, providing an established urban setting for a residential income asset. The owner covers water usage, while tenants pay the other utilities. The property is located at 3903 University Avenue in Des Moines, Iowa.
The property is positioned near Drake University and downtown, providing an established urban setting for a residential income asset. The owner covers water usage, while tenants pay the other utilities. The property is located at 3903 University Avenue in Des Moines, Iowa.
Key Highlights
- Four‑unit property built in 1918
- Current tenants in place
- Owner pays water usage; tenants cover other utilities
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
$23,471
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
8.24%
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%
$469,420
$469.4K
Cap Rate 7%
$335,300
$335.3K
Cap Rate 9%
$260,789
$260.8K
Market Conditions
NOI Build-Up for 2,816 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
$44.3K $15.72/SF
− Vacancy
−$1.6K −$0.57/SF
EGI
$42.7K $15.15/SF
− OpEx
−$19.2K −$6.82/SF
NOI
$23.5K $8.33/SF
Area
Des Moines, IA
Vacancy
3.60%
Lease Rate
$15.72 /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%
$469,420
Cap Rate 7%
$335,300
Cap Rate 9%
$260,789
Alternative Uses
Best Use
Multifamily LT 5
$375.3K
$328.4K – $437.9K
NOI $26,272 @ 7.0% cap · market cap 9.22%
Second Best
Apartment 5plus
$335.3K
$293.4K – $391.2K
NOI $23,471 @ 7.0% cap · market cap 8.24%
Theoretical Best
Office A
$693.5K
$606.8K – $809.1K
NOI $48,547 @ 7.0% cap · market cap 17.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
4
Residential units
Location Intelligence
Trade Area within ½ mile
554
Businesses Nearby
Explore this area
Business Placement
Demographics for 50311, IA
14,782
Population
7,180
Households
2.1
Avg Household Size
30
Median Age
41%
College-Educated
94%
High-School Grad
2.6 sq mi
ZIP Area
5,685
Density / Sq Mi
$63,233
Median Household Income
$35,086
Median Earnings
$1,019
Median Rent
$228,000
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?
Quadplex - Occupied multifamily property with separately metered tenant utilities and owner-paid water service.
Where is this quadplex located?
The property is located at 3903 University Avenue Des Des Moines, IA.
What is the asking price?
The asking price for this property is $285,000.
What are key features of this property?
This property features: Four‑unit property built in 1918; Current tenants in place; Owner pays water usage; tenants cover other utilities
