Updated Coffee Shop With
For Sale
$395,900
616 4th Street, Sully, IA 50251
CommercialSale, Sully, IA
Property Size2,500 SF
Lot Size0.07 Acres
Price / SF$158.36
Days on Market316
Property Features for 616 4th Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
Comm
Appliances
Cooktop, Dishwasher, Freezer, Microwave, Refrigerator, Stove, Washer
Directions
From I-80, take Exit 173 toward Lynnville/Sully. Head south on Hwy T38 into Sully. Turn right onto 4th Street. Property will be on your right at 616 4th Street, located in downtown Sully.
Subdivision
Sully
Standard status
Active
APN
2008139004
Lot size
0.07 Acres
Taxes and HOA fees
Tax Year
2024
Tax Description
ORIGINAL PLAT LOT 5 BLK 14
Tax Annual Amount
694
Legal Description
ORIGINAL PLAT LOT 5 BLK 14
Utilities
Sewer type
Public Sewer
Heating system
Natural Gas
Cooling system
Central Air
Water source
Public
Building Details
Year built
1976
Flooring type
Carpet
Building materials
Brick, Stone
Roof type
Rubber
Listing Agency:
Realty ONE Group Impact
(515) 446-7524
Listed By:
Nela Biscanin
(603) 800-7008
Added: Oct 13, 2025
Changed: Aug 19
Last Checked: Aug 24 at 3:06PM
MLS# 728246
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 coffee shop and restaurant property includes a 2,500+ sq ft building with a commercial kitchen, customer service areas, patio space, and a rear garage/parking area. Improvements completed from 2023-2025 include a fire suppression system, electrical and plumbing updates, new kitchen equipment, cement work, signage, gutters, locks, and flooring. The kitchen equipment includes fryers, ovens, refrigeration, sinks, and related items.
A remodeled two-bedroom apartment occupies the upper level, providing an owner-occupancy or rental component within the property. The building dates to 1976 and uses brick and stone construction, rubber roofing, natural gas heat, central air, public water, and public sewer. Located at 616 4th Street in Sully, the property is zoned Comm and occupies 0.0667 acres.
A remodeled two-bedroom apartment occupies the upper level, providing an owner-occupancy or rental component within the property. The building dates to 1976 and uses brick and stone construction, rubber roofing, natural gas heat, central air, public water, and public sewer. Located at 616 4th Street in Sully, the property is zoned Comm and occupies 0.0667 acres.
Key Highlights
- 2,500+ sq ft coffee shop and restaurant building
- Renovations and system upgrades completed from 2023‑2025
- Remodeled two‑bedroom apartment above the commercial space
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
$32,940
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
8.32%
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%
$658,800
$658.8K
Cap Rate 7%
$470,571
$470.6K
Cap Rate 9%
$366,000
$366.0K
Market Conditions
NOI Build-Up for 2,500 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
$54.9K $21.96/SF
− Vacancy
−$11.0K −$4.39/SF
EGI
$43.9K $17.57/SF
− OpEx
−$11.0K −$4.39/SF
NOI
$32.9K $13.18/SF
Area
Jasper County, IA
Vacancy
20.00%
Lease Rate
$21.96 /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%
$658,800
Cap Rate 7%
$470,571
Cap Rate 9%
$366,000
Alternative Uses
Best Use
Specialty Retail
$524.3K
$458.7K – $611.6K
NOI $36,698 @ 7.0% cap · market cap 9.27%
Second Best
Office B
$470.6K
$411.8K – $549.0K
NOI $32,940 @ 7.0% cap · market cap 8.32%
Theoretical Best
Flex RnD
$2.41M
$2.11M – $2.81M
NOI $168,460 @ 7.0% cap · market cap 42.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Sprinkler system
Location Intelligence
Trade Area within ½ mile
111
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 50251, IA
1,339
Population
578
Households
2.3
Avg Household Size
39
Median Age
23%
College-Educated
97%
High-School Grad
43.7 sq mi
ZIP Area
31
Density / Sq Mi
$95,417
Median Household Income
$44,390
Median Earnings
$905
Median Rent
$171,500
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- La Rose Marie Bakery and Boutique — 620 4th St, Sully, IA 50251
Frequently Asked Questions
What type of property is this?
Coffee shop - Commercial kitchen equipment, patio space, and a remodeled apartment create a live-work configuration.
Where is this coffee shop located?
The property is located at 616 4th Street Sully, IA.
What is the asking price?
The asking price for this property is $395,900.
What are key features of this property?
This property features: 2,500+ sq ft coffee shop and restaurant building; Renovations and system upgrades completed from 2023‑2025; Remodeled two‑bedroom apartment above the commercial space
