Well-Maintained Red Roof
For Sale
Contact for pricing
Pending
5020 NE 14th St, Des Moines, IA 50313
Two-story hotel with 57 guest rooms and ample parking.
Property Size24,004 SF
Days on Market194
Property Features for 5020 NE 14th St
General Information
Standard status
Pending
Size
24,004 SF
Property subtype
Hospitality
Zoning
GC
Building Details
Year Built
1970
Year Renovated
2007
Listing Agency:
Keller Williams Realty Florida Partners
(386) 944-2800
Listed By:
Matthew Fischer · License #S73198000
Source:
Crexi
Added: Feb 10
Changed: Aug 8
Last Checked: Jul 30 at 6:50AM
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 Keller Williams Realty Florida Partners
Investment Insights
Based on property information with market context.
This well-maintained, two-story Red Roof Inn features 57 guest rooms, offering a mix of king suites, queen rooms, and double-bed rooms, each with a private bathroom. The property provides dual interior and exterior room access for guest convenience. Amenities include a welcoming lobby with a check-in area, a dedicated breakfast area, a private restroom, and a security room equipped with webcam monitoring. Situated on a spacious lot, the hotel offers 52 on-site parking spaces. The property was updated in 2019. This property presents an opportunity for hospitality investors or operators.
Key Highlights
- 57 guest rooms featuring king suites, queen rooms, and double‑bed rooms, all with private bathrooms.
- Dual interior and exterior room access.
- 52 on‑site parking spaces.
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
$180,606
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
6.45%
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%
$3,612,120
$3.6M
Cap Rate 7%
$2,580,086
$2.6M
Cap Rate 9%
$2,006,733
$2.0M
Market Conditions
NOI Build-Up for 24,004 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
$432.1K $18.00/SF
− Vacancy
−$51.8K −$2.16/SF
EGI
$380.2K $15.84/SF
− OpEx
−$199.6K −$8.32/SF
NOI
$180.6K $7.52/SF
Area
Des Moines, IA
Vacancy
12.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
52.50%
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%
$3,612,120
Cap Rate 7%
$2,580,086
Cap Rate 9%
$2,006,733
Alternative Uses
Best Use
Hotel Hospitality
$2.58M
$2.26M – $3.01M
NOI $180,606 @ 7.0% cap · market cap 6.45%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.91M
$5.17M – $6.90M
NOI $413,821 @ 7.0% cap · market cap 14.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
349
Businesses Nearby
Explore this area
Business Placement
Demographics for 50313, IA
17,723
Population
7,674
Households
2.3
Avg Household Size
37
Median Age
16%
College-Educated
86%
High-School Grad
18.1 sq mi
ZIP Area
979
Density / Sq Mi
$64,077
Median Household Income
$36,284
Median Earnings
$1,077
Median Rent
$161,800
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Hotel - Two-story hotel with 57 guest rooms and ample parking.
Where is this hotel located?
The property is located at 5020 NE 14th St Des Moines, IA.
What is the asking price?
The asking price for this property is $2,800,000.
What are key features of this property?
This property features: 57 guest rooms featuring king suites, queen rooms, and double‑bed rooms, all with private bathrooms.; Dual interior and exterior room access.; 52 on‑site parking spaces.
