Drive-Through Restaurant with
For Sale
$699,990
5405 Douglas Avenue, Des Moines, IA 50310
CommercialSale, Des Moines, IA
Property Size2,354 SF
Lot Size0.62 Acres
Price / SF$297.36
Days on Market198
Property Features for 5405 Douglas Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
MX3
Directions
Take Merle Hay road to Douglas Ave and turn east. Go 2 blocks and turn north into lot
Subdivision
Des Moines N.West
Standard status
Active
APN
10000953000000
Lot size
0.62 Acres
Taxes and HOA fees
Tax Description
LOTS 38 THRU 43 INCL BLK M AVIATION PARK
Tax Annual Amount
12122
Legal Description
LOTS 38 THRU 43 INCL BLK M AVIATION PARK
Building Details
Year built
1975
Listing Agency:
RE/MAX Precision · RE/MAX International
(515) 223-9492
Listed By:
Michael TenHaken
(515) 208-4980
Added: Feb 12
Changed: Aug 19
Last Checked: Aug 29 at 4:06AM
MLS# 734344
Copyright © 2026 Des Moines Area Association of REALTORS®, Inc. 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 drive-through restaurant property includes newer grease traps and an existing commercial kitchen package. Stainless-steel prep tables, hoods, appliances, and a cooler are included with the sale. The building was constructed in 1975 and is situated on approximately 0.617 acres.
The property fronts Douglas Avenue in Des Moines, with reported daily traffic of 12,600 vehicles. Merle Hay Mall is located nearby, and the site is positioned within the Douglas Avenue commercial corridor. MX3 zoning supports the property’s commercial classification.
The property fronts Douglas Avenue in Des Moines, with reported daily traffic of 12,600 vehicles. Merle Hay Mall is located nearby, and the site is positioned within the Douglas Avenue commercial corridor. MX3 zoning supports the property’s commercial classification.
Key Highlights
- Drive‑through restaurant property on Douglas Avenue
- MX3 zoning
- Approximately 0.617 acres
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
$27,881
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
3.98%
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%
$557,620
$557.6K
Cap Rate 7%
$398,300
$398.3K
Cap Rate 9%
$309,789
$309.8K
Market Conditions
NOI Build-Up for 2,354 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
$39.5K $16.80/SF
− Vacancy
−$2.4K −$1.01/SF
EGI
$37.2K $15.79/SF
− OpEx
−$9.3K −$3.95/SF
NOI
$27.9K $11.84/SF
Area
Des Moines, IA
Vacancy
6.00%
Lease Rate
$16.80 /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%
$557,620
Cap Rate 7%
$398,300
Cap Rate 9%
$309,789
Alternative Uses
Best Use
Specialty Retail
$398.3K
$348.5K – $464.7K
NOI $27,881 @ 7.0% cap · market cap 3.98%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$579.7K
$507.3K – $676.4K
NOI $40,582 @ 7.0% cap · market cap 5.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
12,600 VPD
Traffic count
Yes
Commercial hood
Yes
Grease trap
Location Intelligence
Trade Area within ½ mile
939
Businesses Nearby
Explore this area
Business Placement
Demographics for 50310, IA
30,754
Population
14,162
Households
2.2
Avg Household Size
37
Median Age
36%
College-Educated
86%
High-School Grad
8.0 sq mi
ZIP Area
3,844
Density / Sq Mi
$74,473
Median Household Income
$46,091
Median Earnings
$1,043
Median Rent
$213,800
Median Home Value
Market
Vacancy Rate% for Retail in Des Moines, IA
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Drive through restaurant - Restaurant property with drive-through service, commercial kitchen equipment, and MX3 zoning along Douglas Avenue.
Where is this drive through restaurant located?
The property is located at 5405 Douglas Avenue Des Moines, IA.
What is the asking price?
The asking price for this property is $699,990.
What are key features of this property?
This property features: Drive‑through restaurant property on Douglas Avenue; MX3 zoning; Approximately 0.617 acres
