Multi-Tenant Retail
For Sale
Contact for pricing
402 Indianhead Dr, Mason City, IA 50401
Three-suite retail property leased to Subway and US Cellular near Indianhead Square.
Property Size6,148 SF
Price / SF$227.72
Days on Market95
Property Features for 402 Indianhead Dr
General Information
Standard status
Active
Size
6,148 SF
Property subtype
Retail
Zoning
Z4 - Multi-Use District
Investment Type
Stabilized
Additional Details
Office Units
3
Building Details
Year Built
2003
Stories
1
Units
3
Tenancy
Multi
Listing Agency:
Hildebrand Real Estate
(641) 425-0363
Listed By:
Timothy Latham · License #IA B44162
Source:
Crexi
Added: May 27
Changed: Aug 8
Last Checked: Aug 29 at 12:08AM
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 Hildebrand Real Estate
Investment Insights
Based on property information with market context.
This west side retail storefront property is configured as three suites in total. Two of the suites are occupied by US Cellular, and one suite is under lease with Subway, creating a multi-tenant setup within a single ownership. The asset is presented for sale as a quality income-producing retail investment based on the current lease occupancy.
The property is located at 402 Indianhead Dr in Mason City, Iowa. It sits near the Indianhead Square retail center, with Walmart and Kohls nearby, placing it in an active shopping environment supported by established retail destinations.
For buyers seeking a small, professionally managed retail investment with established national tenants, this three-suite configuration offers straightforward leasing structure. It may also fit investors looking for exposure to consumer-oriented retail uses through long-recognized brands represented on-site by Subway and US Cellular. As presented, the key consideration is the existing tenant occupancy by two national operators across the three suites.
The property is located at 402 Indianhead Dr in Mason City, Iowa. It sits near the Indianhead Square retail center, with Walmart and Kohls nearby, placing it in an active shopping environment supported by established retail destinations.
For buyers seeking a small, professionally managed retail investment with established national tenants, this three-suite configuration offers straightforward leasing structure. It may also fit investors looking for exposure to consumer-oriented retail uses through long-recognized brands represented on-site by Subway and US Cellular. As presented, the key consideration is the existing tenant occupancy by two national operators across the three suites.
Key Highlights
- Built in 2003 three‑suite retail property
- 3 total retail suites leased to national tenants
- One suite leased to Subway
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
$47,512
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
3.39%
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%
$950,240
$950.2K
Cap Rate 7%
$678,743
$678.7K
Cap Rate 9%
$527,911
$527.9K
Market Conditions
NOI Build-Up for 6,148 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
$73.8K $12.00/SF
− Vacancy
−$5.9K −$0.96/SF
EGI
$67.9K $11.04/SF
− OpEx
−$20.4K −$3.31/SF
NOI
$47.5K $7.73/SF
Area
Cerro Gordo County, IA
Vacancy
8.00%
Lease Rate
$12.00 /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%
$950,240
Cap Rate 7%
$678,743
Cap Rate 9%
$527,911
Alternative Uses
Best Use
Retail
$678.7K
$593.9K – $791.9K
NOI $47,512 @ 7.0% cap · market cap 3.39%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.54M
$1.35M – $1.80M
NOI $108,032 @ 7.0% cap · market cap 7.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Office units
Location Intelligence
Trade Area within ½ mile
302
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 50401, IA
28,981
Population
14,746
Households
2
Avg Household Size
43
Median Age
22%
College-Educated
94%
High-School Grad
148.2 sq mi
ZIP Area
196
Density / Sq Mi
$63,807
Median Household Income
$38,929
Median Earnings
$868
Median Rent
$134,100
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Three-suite retail property leased to Subway and US Cellular near Indianhead Square.
Where is this storefront property located?
The property is located at 402 Indianhead Dr Mason City, IA.
What is the asking price?
The asking price for this property is $1,400,000.
What are key features of this property?
This property features: Built in 2003 three‑suite retail property; 3 total retail suites leased to national tenants; One suite leased to Subway
