NNN Retail
New
For Sale
$4,995,000
425 E Hwy 6, Iowa City, IA 52240
Fully leased retail property with shared parking and direct placement along a high-traffic commercial corridor.
Property Size36,322 SF
Price / SF$137.52
Days on Market4
Property Features for 425 E Hwy 6
General Information
Standard status
Active
Size
36,322 SF
Occupancy
100%
Site & Location
Traffic Count
10,700 vehicles/day
Highway Access
Yes
Road Access
Yes
Additional Details
Cap Rate
7.7%
Building Details
Year Built
1980
Buildings
1
Tenancy
Multi
Listing Agency:
Lepic-Kroeger, REALTORS
(319) 331-6187
Listed By:
Jeff Edberg · License #B33730000
Source:
Kwlegacyrealty
Added: Aug 8
Changed: Aug 9
Last Checked: Aug 10 at 7:57AM
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 Lepic-Kroeger, REALTORS
Investment Insights
Based on property information with market context.
Built in 1980, this 36,322-square-foot retail property is fully occupied by two tenants under NNN lease structures. Goodwill Industries has operated at the property since 1967 and expanded into its current space in 2021, while the other tenant has occupied its suite since 1997. The property carries a 7.7% capitalization rate, with scheduled increases noted in the leasing information.
The building is located at 425 E Hwy 6 in Iowa City, adjacent to Waterfront Hy-Vee and near the east-facing building that shares the parking area. Hwy 6 traffic is reported at 10,700 cars daily. Approximately 125 shared parking spaces serve the property and the facing building.
The building is located at 425 E Hwy 6 in Iowa City, adjacent to Waterfront Hy-Vee and near the east-facing building that shares the parking area. Hwy 6 traffic is reported at 10,700 cars daily. Approximately 125 shared parking spaces serve the property and the facing building.
Key Highlights
- 36,322‑square‑foot retail property built in 1980
- Fully occupied by two long‑term tenants
- Goodwill Industries occupancy dates to 1967, with expansion into the current space in 2021
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
$344,158
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
6.89%
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%
$6,883,160
$6.9M
Cap Rate 7%
$4,916,543
$4.9M
Cap Rate 9%
$3,823,978
$3.8M
Market Conditions
NOI Build-Up for 36,322 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
$523.0K $14.40/SF
− Vacancy
−$31.4K −$0.86/SF
EGI
$491.7K $13.54/SF
− OpEx
−$147.5K −$4.06/SF
NOI
$344.2K $9.48/SF
Area
Johnson County, IA
Vacancy
6.00%
Lease Rate
$14.40 /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%
$6,883,160
Cap Rate 7%
$4,916,543
Cap Rate 9%
$3,823,978
Alternative Uses
Best Use
Retail
$4.92M
$4.30M – $5.74M
NOI $344,158 @ 7.0% cap · market cap 6.89%
Second Best
Industrial
$3.11M
$2.72M – $3.62M
NOI $217,387 @ 7.0% cap · market cap 4.35%
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 authorities.
Property Analytics
Property Profile
Current Use
Lease Details
10,700 VPD
Traffic count
100%
Occupancy
Multi-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,071
Businesses Nearby
149k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 36%
Dining 27%
Shops & Services 23%
Home Improvements & Furnishings 8%
Hy-Vee
Groceries
48,058 visits/mo
0.2 miles
Kwik Trip
Shops & Services
25,518 visits/mo
0.3 miles
Taco Bell
Dining
16,057 visits/mo
0.4 miles
Tractor Supply Co.
Home Improvements & Furnishings
9,357 visits/mo
0.2 miles
Burger King
Dining
8,707 visits/mo
0.1 miles
Demographics for 52240, IA
34,224
Population
17,035
Households
2
Avg Household Size
29
Median Age
47%
College-Educated
94%
High-School Grad
142.1 sq mi
ZIP Area
241
Density / Sq Mi
$55,189
Median Household Income
$25,508
Median Earnings
$1,065
Median Rent
$241,100
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?
NNN property - Fully leased retail property with shared parking and direct placement along a high-traffic commercial corridor.
Where is this nnn property 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‑square‑foot retail property built in 1980; Fully occupied by two long‑term tenants; Goodwill Industries occupancy dates to 1967, with expansion into the current space in 2021
