Industrial Flex Office
For Sale
Contact for pricing
740 KACENA RD, Hiawatha, IA 52233
A well-maintained 2003-built flex building with finished office improvements, central HVAC, and 15-foot clear height.
Property Size6,528 SF
Lot Size2.11 Acres
Price / SF$137.71
Days on Market56
Property Features for 740 KACENA RD
General Information
Standard status
Active
Size
6,528 SF
Class
B
Lot size
2.11 Acres
Property subtype
Industrial
Zoning
I-2
Lease Type
Modified Gross
Investment Type
Owner/User
Warehouse & Industrial
Clear Height
15 ft
Drive-In Doors
3
Building Details
Year Built
2003
Year Renovated
2021
Buildings
1
Stories
1
Units
1
Tenancy
Multi
Listing Agency:
Stanbrough Realty
Listed By:
Ross Quintero · License #S63415000
Source:
Crexi
Added: Jun 18
Changed: Aug 7
Last Checked: Aug 12 at 11:33AM
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 Stanbrough Realty
Investment Insights
Based on property information with market context.
Well-maintained industrial office/flex building constructed in 2003 on a 2.11-acre site. The metal siding and metal roofing support a mixed-use layout that includes finished office space with five offices, a conference room, two breakrooms, and two bathrooms, plus a warehouse area. Building systems include central HVAC, and clear height is approximately 15 feet. Three overhead doors provide access to the warehouse portion.
The property also includes significant excess land for expansion, including a pad site suitable for an additional 12,000 SF building.
For buyers, the configuration supports a business that needs both office and warehouse operations in one facility, while leaving the remaining 3,528 SF of finished office/flex space available upon sale. The building is currently leased: an in-place tenant occupies 3,000 SF on the north side under a 5-year lease with modified gross terms. This combination of usable income and available space may appeal to owner-occupants and investors seeking flexible space inside a functional industrial setup.
The property also includes significant excess land for expansion, including a pad site suitable for an additional 12,000 SF building.
For buyers, the configuration supports a business that needs both office and warehouse operations in one facility, while leaving the remaining 3,528 SF of finished office/flex space available upon sale. The building is currently leased: an in-place tenant occupies 3,000 SF on the north side under a 5-year lease with modified gross terms. This combination of usable income and available space may appeal to owner-occupants and investors seeking flexible space inside a functional industrial setup.
Key Highlights
- 2003‑built industrial office/flex building on a 2.11‑acre site in Hiawatha with metal siding and metal roofing
- 6,528 SF building with finished office layout plus warehouse area, including 5 offices, 1 conference room, and 2 breakrooms
- Central HVAC and 15' clear height, with three overhead doors
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
$38,507
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
4.28%
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%
$770,140
$770.1K
Cap Rate 7%
$550,100
$550.1K
Cap Rate 9%
$427,856
$427.9K
Market Conditions
NOI Build-Up for 6,528 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
$48.0K $7.36/SF
− Vacancy
−$2.7K −$0.42/SF
EGI
$45.3K $6.94/SF
− OpEx
−$6.8K −$1.04/SF
NOI
$38.5K $5.90/SF
Area
Linn County, IA
Vacancy
5.71%
Lease Rate
$7.36 /SF/Yr
Expense Ratio
15.00%
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%
$770,140
Cap Rate 7%
$550,100
Cap Rate 9%
$427,856
Alternative Uses
Best Use
Warehouse
$550.1K
$481.3K – $641.8K
NOI $38,507 @ 7.0% cap · market cap 4.28%
Second Best
Industrial
$453.0K
$396.4K – $528.5K
NOI $31,712 @ 7.0% cap · market cap 3.53%
Theoretical Best
Self Storage
$1.10M
$961.3K – $1.28M
NOI $76,906 @ 7.0% cap · market cap 8.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
15 ft
Clear height
3
Drive-in doors
Location Intelligence
Trade Area within ½ mile
456
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 52233, IA
7,091
Population
3,123
Households
2.3
Avg Household Size
39
Median Age
31%
College-Educated
97%
High-School Grad
3.9 sq mi
ZIP Area
1,818
Density / Sq Mi
$66,497
Median Household Income
$44,111
Median Earnings
$846
Median Rent
$200,500
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.
Frequently Asked Questions
What type of property is this?
Flex space - A well-maintained 2003-built flex building with finished office improvements, central HVAC, and 15-foot clear height.
Where is this flex space located?
The property is located at 740 KACENA RD Hiawatha, IA.
What is the asking price?
The asking price for this property is $899,000.
What are key features of this property?
This property features: 2003‑built industrial office/flex building on a 2.11‑acre site in Hiawatha with metal siding and metal roofing; 6,528 SF building with finished office layout plus warehouse area, including 5 offices, 1 conference room, and 2 breakrooms; Central HVAC and 15' clear height, with three overhead doors
