Renovated Downtown Office
For Sale
$2,381,000
404 E 4th Street, Waterloo, IA 50703
Fully leased office building with recent renovations and two established tenants in downtown Waterloo.
Property Size17,208 SF
Days on Market107
Property Features for 404 E 4th Street
General Information
Standard status
Active
Size
17,208 SF
Property subtype
Commercial
Zoning
C-3
Occupancy
100%
Lease Type
Net
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$59,142
Amenities
0.65
17208
Building Details
Building Size
17,208 SF
Year Built
1920
Tenancy
Multi
Listing Agency:
Century 21 Trinity
(319) 393-0900
Listed By:
Star Horak
(319) 538-7671
Source:
Pinnaclerealtyia
Added: May 29
Changed: Sep 11
Last Checked: Sep 11 at 5:49AM
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 Century 21 Trinity
Investment Insights
Based on property information with market context.
This renovated office building is fully occupied and leased to two established tenants. The property offers a turnkey setup supported by recent improvements, bringing a maintained, updated appearance to a distinctive downtown asset. As an office building, it is configured to support multiple tenant operations under one ownership structure.
Located in the heart of Downtown Waterloo, the building benefits from its downtown presence. It is positioned near restaurants, entertainment, government offices, and other downtown amenities, supporting day-to-day business accessibility for employees and visitors. The property also benefits from strong visibility within the downtown environment.
For buyers looking for an income-producing office asset, this building provides current occupancy with two tenant relationships already in place. For tenants and brokers evaluating the space, the recent renovations and maintained condition can help reduce near-term capital needs while offering a professionally presented downtown office setting. The combination of a renovated exterior and interior condition, along with existing leasing to two tenants, makes the property straightforward to evaluate as an office investment or ownership opportunity.
Located in the heart of Downtown Waterloo, the building benefits from its downtown presence. It is positioned near restaurants, entertainment, government offices, and other downtown amenities, supporting day-to-day business accessibility for employees and visitors. The property also benefits from strong visibility within the downtown environment.
For buyers looking for an income-producing office asset, this building provides current occupancy with two tenant relationships already in place. For tenants and brokers evaluating the space, the recent renovations and maintained condition can help reduce near-term capital needs while offering a professionally presented downtown office setting. The combination of a renovated exterior and interior condition, along with existing leasing to two tenants, makes the property straightforward to evaluate as an office investment or ownership opportunity.
Key Highlights
- Fully leased office building in downtown Waterloo
- Built in 1920 with distinctive architecture
- Leased to two established tenants
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
$112,697
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
4.73%
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%
$2,253,940
$2.3M
Cap Rate 7%
$1,609,957
$1.6M
Cap Rate 9%
$1,252,189
$1.3M
Market Conditions
NOI Build-Up for 17,208 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
$198.2K $11.52/SF
− Vacancy
−$48.0K −$2.79/SF
EGI
$150.3K $8.73/SF
− OpEx
−$37.6K −$2.18/SF
NOI
$112.7K $6.55/SF
Area
Black Hawk County, IA
Vacancy
24.20%
Lease Rate
$11.52 /SF/Yr
Expense Ratio
25.00%
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%
$2,253,940
Cap Rate 7%
$1,609,957
Cap Rate 9%
$1,252,189
Alternative Uses
Best Use
Office B
$1.61M
$1.41M – $1.88M
NOI $112,697 @ 7.0% cap · market cap 4.73%
Second Best
—
—
no second resolved use
Theoretical Best
Mixed Use
$21.57M
$18.88M – $25.17M
NOI $1,510,002 @ 7.0% cap · market cap 63.42%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
33
Businesses Nearby
Explore this area
Business Placement
Demographics for 50703, IA
18,913
Population
8,705
Households
2.2
Avg Household Size
38
Median Age
13%
College-Educated
87%
High-School Grad
93.2 sq mi
ZIP Area
203
Density / Sq Mi
$49,412
Median Household Income
$33,105
Median Earnings
$926
Median Rent
$92,500
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Midwest region
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Frequently Asked Questions
What type of property is this?
Office building - Fully leased office building with recent renovations and two established tenants in downtown Waterloo.
Where is this office building located?
The property is located at 404 E 4th Street Waterloo, IA.
What is the asking price?
The asking price for this property is $2,381,000.
What are key features of this property?
This property features: Fully leased office building in downtown Waterloo; Built in 1920 with distinctive architecture; Leased to two established tenants
