Historic Plaza Shopping
For Sale
$730,000
7 S Federal, Mason City, IA 50401
COMMERCIAL - MASON CITY, IA
Property Size3,520 SF
Price / SF$207.39
Days on Market652
Property Features for 7 S Federal
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
Southeast
Standard status
Active
Size
3,520 SF
Taxes and HOA fees
Tax Year
2023
Tax Description
L 2 & N1/2 L 1 IN L 3 BLK 16 PAUL FELTS PLAT
Tax Annual Amount
2734
Legal Description
L 2 & N1/2 L 1 IN L 3 BLK 16 PAUL FELTS PLAT
Utilities
Cooling system
Central Air
Building Details
Year built
1875
Floors in Building
2
Building materials
Block, Brick Veneer
Architectural style
Other
Listing Agency:
HILDEBRAND REAL ESTATE
(641) 423-5055
Listed By:
TIMOTHY LATHAM · License #S44162
(641) 425-0363
Added: Oct 30, 2024
Changed: Aug 4
Last Checked: Aug 12 at 1:06AM
MLS# 240773
Copyright © 2026 Greater Mason City Board of Realtors. 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 shopping center offering comprises a six-parcel commercial package totaling 3,520 square feet. The properties include storefronts positioned along the plaza, select spaces with apartments above, and two additional stores opening toward the mall entrance. Long-term tenants occupy the mall-entry locations, while the plaza-facing spaces provide opportunities for business use or leasing to other occupants. The improvements date to 1875 and include block and brick veneer construction with central air conditioning.
The properties are located at 7 S Federal in Mason City, with additional included buildings at 9 S Federal, 11 S Federal, and 10 1st SE. The plaza is associated with a Frank Lloyd Wright hotel, restaurants, entertainment venues, and several small businesses. Roof replacements are reported at 9 S Federal, 11 S Federal, and 10 1st SE.
The properties are located at 7 S Federal in Mason City, with additional included buildings at 9 S Federal, 11 S Federal, and 10 1st SE. The plaza is associated with a Frank Lloyd Wright hotel, restaurants, entertainment venues, and several small businesses. Roof replacements are reported at 9 S Federal, 11 S Federal, and 10 1st SE.
Key Highlights
- Six‑parcel package totaling 3,520 square feet
- Plaza‑facing storefronts with apartments above select spaces
- Two additional stores open toward the mall entrance
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
$27,203
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
3.73%
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%
$544,060
$544.1K
Cap Rate 7%
$388,614
$388.6K
Cap Rate 9%
$302,256
$302.3K
Market Conditions
NOI Build-Up for 3,520 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
$42.2K $12.00/SF
− Vacancy
−$3.4K −$0.96/SF
EGI
$38.9K $11.04/SF
− OpEx
−$11.7K −$3.31/SF
NOI
$27.2K $7.73/SF
Area
Cerro Gordo County, IA
Vacancy
8.00%
Lease Rate
$12.00 /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%
$544,060
Cap Rate 7%
$388,614
Cap Rate 9%
$302,256
Alternative Uses
Best Use
Retail
$388.6K
$340.0K – $453.4K
NOI $27,203 @ 7.0% cap · market cap 3.73%
Second Best
Mixed Use
$339.4K
$297.0K – $396.0K
NOI $23,760 @ 7.0% cap · market cap 3.25%
Theoretical Best
Office A
$883.6K
$773.2K – $1.03M
NOI $61,853 @ 7.0% cap · market cap 8.47%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,118
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 50401, IA
28,981
Population
14,746
Households
2
Avg Household Size
43
Median Age
22%
College-Educated
94%
High-School Grad
148.2 sq mi
ZIP Area
196
Density / Sq Mi
$63,807
Median Household Income
$38,929
Median Earnings
$868
Median Rent
$134,100
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?
Shopping center - Six-parcel commercial package with plaza-facing storefronts, additional mall-entry shops, and residential units above select spaces.
Where is this shopping center located?
The property is located at 7 S Federal Mason City, IA.
What is the asking price?
The asking price for this property is $730,000.
What are key features of this property?
This property features: Six‑parcel package totaling 3,520 square feet; Plaza‑facing storefronts with apartments above select spaces; Two additional stores open toward the mall entrance
