Distribution Warehouse Investment
For Sale
Contact for pricing
4520 20th Ave SW, Cedar Rapids, IA 52404
232,750 SF distribution warehouse with strong tenant and cash flow.
Property Size232,750 SF
Price / SF$58.71
Days on Market180
Property Features for 4520 20th Ave SW
General Information
Standard status
Active
Size
232,750 SF
Property subtype
Industrial
Zoning
Light Industrial
Occupancy
100%
Lease Type
NNN
Investment Type
Stabilized
Net Operating Income
$1,024,800
Building Details
Year Built
1999
Buildings
1
Stories
1
Tenancy
Single
Listing Agency:
GLD Commercial Real Estate Advisors
(319) 731-3415
Listed By:
Adam Gibbs · License #IA B43857000
Source:
Crexi
Added: Feb 12
Changed: Aug 8
Last Checked: Aug 10 at 12:12PM
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 GLD Commercial Real Estate Advisors
Investment Insights
Based on property information with market context.
This is a 232,750 SF institutional-quality distribution warehouse. It is currently leased to Consolidated Electrical Distributors, a nationally recognized tenant. The property generates $85,400 per month ($1,024,800 annually) in NNN income. The property is offered at $13,664,000, reflecting a 7.5% capitalization rate. The building features tall clear heights and efficient distribution functionality. In-place rents are below current market levels. The offering is priced below replacement cost. The property has immediate access to Highway 30 and I-380, providing regional and interstate connectivity. The site is positioned near the 1,400-acre data center campus development anchored by Google and QTS Data Centers. This location is in the Cedar Rapids market.
Key Highlights
- Leased to Consolidated Electrical Distributors, a nationally recognized, financially strong tenant.
- Generates $1,024,800 annually in NNN income with a 7.5% capitalization rate.
- Priced well below replacement cost, enhancing downside protection.
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
$1,220,364
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
8.93%
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%
$24,407,280
$24.4M
Cap Rate 7%
$17,433,771
$17.4M
Cap Rate 9%
$13,559,600
$13.6M
Market Conditions
NOI Build-Up for 232,750 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
$1.82M $7.80/SF
− Vacancy
−$72.1K −$0.31/SF
EGI
$1.74M $7.49/SF
− OpEx
−$523.0K −$2.25/SF
NOI
$1.22M $5.24/SF
Area
Cedar Rapids, IA
Vacancy
3.97%
Lease Rate
$7.80 /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%
$24,407,280
Cap Rate 7%
$17,433,771
Cap Rate 9%
$13,559,600
Alternative Uses
Best Use
Warehouse
$21.17M
$18.52M – $24.70M
NOI $1,481,870 @ 7.0% cap · market cap 10.85%
Second Best
Industrial
$17.43M
$15.25M – $20.34M
NOI $1,220,364 @ 7.0% cap · market cap 8.93%
Theoretical Best
Specialty Retail
$33.69M
$29.48M – $39.30M
NOI $2,358,048 @ 7.0% cap · market cap 17.26%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
388
Businesses Nearby
Explore this area
Business Placement
Demographics for 52404, IA
43,385
Population
19,923
Households
2.2
Avg Household Size
35
Median Age
22%
College-Educated
94%
High-School Grad
56.6 sq mi
ZIP Area
767
Density / Sq Mi
$62,304
Median Household Income
$38,865
Median Earnings
$885
Median Rent
$159,700
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Distribution center - 232,750 SF distribution warehouse with strong tenant and cash flow.
Where is this distribution center located?
The property is located at 4520 20th Ave SW Cedar Rapids, IA.
What is the asking price?
The asking price for this property is $13,664,000.
What are key features of this property?
This property features: Leased to Consolidated Electrical Distributors, a nationally recognized, financially strong tenant.; Generates $1,024,800 annually in NNN income with a 7.5% capitalization rate.; Priced well below replacement cost, enhancing downside protection.
