Leased NNN Retail
425 E Hwy 6 Iowa City, IA 52240
425 E Hwy 6, Iowa City, IA, 52240
$4,995,000
For Sale
$4,995,000
COMMERCIAL - IowaCity, IA
Property Size36,322 SF
Lot Size2.57 Acres
Price / SF$137.52
Days on Market48
Property Features for 425 E Hwy 6
General Information
- Property type
- Commercial Sale
- Property subtype
- Other
- Zoning
- CC2
- Interior features
- ZeroStepEntry
- Standard status
- Active
- APN
- 1015460002
- Lot size
- 2.57 Acres
Taxes and HOA fees
- Tax Year
- 2023
- Tax Annual Amount
- 103166
Utilities
- Heating system
- Natural Gas, Forced Air
- Cooling system
- Central Air
Building Details
- Year built
- 1980
- Flooring type
- Concrete
- Building materials
- Frame, SteelOrMetal
Listing Agency
Lepic-Kroeger, REALTORS
(319) 351-8811
2346 MORMON TREK BLVD SUITE #2000, Iowa City, IA
Listed by
Jeff Edberg · License #IA B33730000
(319) 331-6187
Added: Jun 2 Checked: Jul 19 at 8:06 am
MLS# 202603536
Copyright © 2026 Iowa City Area Association of REALTORS®. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This leased NNN retail property is configured as two tenant suites within a single building, totaling 36,322 SF. Advanced Auto Parts occupies 8,086 SF and has been in place since 1997. Goodwill Industries originally occupied a portion of the 28,277 SF space and expanded into the full suite in 2021. Both tenants have long-term occupancy, providing stability for an owner seeking an income-producing retail asset. The current lease rates are stated at $11.17 NNN for Advanced Auto Parts and $12.00 NNN for Goodwill, with increases over time as outlined in the attached pro-forma.
The property is located at 425 E Hwy 6 in Iowa City and is described as being adjacent to the Waterfront Hy Vee. Traffic counts on Hwy 6 are listed at 10,700 cars daily. Parking is shared with the facing building to the east, providing approximately 125 parking spaces, plus the shared spaces.
For buyers considering an NNN retail investment, the asset offers a straightforward lease structure with two established tenants occupying the entire building. Its highway frontage and access via shared parking can support tenant operations that benefit from customer convenience and consistent retail traffic.
The property is located at 425 E Hwy 6 in Iowa City and is described as being adjacent to the Waterfront Hy Vee. Traffic counts on Hwy 6 are listed at 10,700 cars daily. Parking is shared with the facing building to the east, providing approximately 125 parking spaces, plus the shared spaces.
For buyers considering an NNN retail investment, the asset offers a straightforward lease structure with two established tenants occupying the entire building. Its highway frontage and access via shared parking can support tenant operations that benefit from customer convenience and consistent retail traffic.
Key Highlights
- 36,322 SF leased commercial property with long‑term tenants: Advanced Auto Parts and Goodwill Industries
- Advanced Auto Parts occupies an 8,086 SF suite since 1997; Goodwill occupies 28,277 SF (expanded to full space in 2021)
- NNN lease rates: $11.17 NNN (Advanced Auto) and $12.00 NNN (Goodwill); reported 7.7% capitalization rate with scheduled increases
Local Financial Insights For Retail
Simulate Cap Rate and NOI
NOI Build-Up
- 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.
| Component | $ | $/SF |
|---|---|---|
| Gross rent | $523.0k | $14.40 |
| − Vacancy | −$31.4k | −$0.86 |
| EGI | $491.7k | $13.54 |
| − OpEx | −$147.5k | −$4.06 |
| NOI | $344.2k | $9.48 |
36,322 SF · lease $14.40/SF/yr · vacancy 6.00% · expense 30.00%
Alternative Uses
Best Use
Retail
$4.92M
$4.30M – $5.74M
NOI $344,158 @ 7.0% cap · market cap 6.89%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$7.89M
$6.90M – $9.21M
NOI $552,327 @ 7.0% cap · market cap 11.06%
Zoning and permitted uses should be independently verified with local authorities.
Property Analytics
Property Profile
Location Intelligence
Current Use by Public Records
Retail space
Similar For Sale Nearby
FAQs
What type of property is this?
Retail space - Two long-term tenants occupy a contiguous retail property with shared parking and NNN leases off Highway 6.
Where is this retail space located?
The property is located at 425 E Hwy 6 Iowa City, IA.
What is the asking price?
The asking price for this property is $4,995,000.
What are key features of this property?
This property features: 36,322 SF leased commercial property with long‑term tenants: Advanced Auto Parts and Goodwill Industries; Advanced Auto Parts occupies an 8,086 SF suite since 1997; Goodwill occupies 28,277 SF (expanded to full space in 2021); NNN lease rates: $11.17 NNN (Advanced Auto) and $12.00 NNN (Goodwill); reported 7.7% capitalization rate with scheduled increases
