Six-Unit Apartment
For Sale
Contact for pricing
823 18th St, Des Moines, IA 50314
Six-unit multifamily building with three 1-bedroom units and three studios.
Property Size2,791 SF
Price / SF$153.71
Days on Market160
Property Features for 823 18th St
General Information
Standard status
Active
Size
2,791 SF
Class
C
Property subtype
Multifamily
Occupancy
100%
Investment Type
Value Add
Additional Details
Cap Rate
7.57%
Multifamily Units
6
Building Details
Year Built
1900
Year Renovated
2023
Stories
2
Units
6
Listing Agency:
Midwest Investment Brokers
Listed By:
Chandler Martin · License #IA B65013000
Source:
Crexi
Added: Apr 2
Changed: Sep 7
Last Checked: Sep 8 at 3:49AM
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 Midwest Investment Brokers
Investment Insights
Based on property information with market context.
This 6-unit multifamily property consists of three 1-bedroom apartments and three studio apartments. The building was built in 1900 and has an approximate total size of 2,791 square feet, with average unit sizes of about 465 square feet.
The property is located in the Sherman Hill Neighborhood in central Des Moines, described as being near medical centers, schools, and major employers.
Current in-place income is supported by average rents of $662.50 per month and market rents of $762.50 in current condition. The offering is presented as a stable income opportunity with additional projected cash flow of $7,200 per year.
The property is located in the Sherman Hill Neighborhood in central Des Moines, described as being near medical centers, schools, and major employers.
Current in-place income is supported by average rents of $662.50 per month and market rents of $762.50 in current condition. The offering is presented as a stable income opportunity with additional projected cash flow of $7,200 per year.
Key Highlights
- 6‑unit multifamily building with three 1‑bedroom units and three studios
- Built in 1900; approximately 2,791 SF total building area
- Average rent of $662.50/month; market rents in current condition of $762.50/month based on nearby comps
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
$23,262
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
5.42%
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%
$465,240
$465.2K
Cap Rate 7%
$332,314
$332.3K
Cap Rate 9%
$258,467
$258.5K
Market Conditions
NOI Build-Up for 2,791 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
$43.9K $15.72/SF
− Vacancy
−$1.6K −$0.57/SF
EGI
$42.3K $15.15/SF
− OpEx
−$19.0K −$6.82/SF
NOI
$23.3K $8.33/SF
Area
Des Moines, IA
Vacancy
3.60%
Lease Rate
$15.72 /SF/Yr
Expense Ratio
45.00%
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%
$465,240
Cap Rate 7%
$332,314
Cap Rate 9%
$258,467
Alternative Uses
Best Use
Apartment 5plus
$332.3K
$290.8K – $387.7K
NOI $23,262 @ 7.0% cap · market cap 5.42%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$687.4K
$601.5K – $801.9K
NOI $48,116 @ 7.0% cap · market cap 11.22%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
6
Residential units
Location Intelligence
Trade Area within ½ mile
2,610
Businesses Nearby
Explore this area
Business Placement
Demographics for 50314, IA
11,764
Population
4,780
Households
2.5
Avg Household Size
31
Median Age
15%
College-Educated
72%
High-School Grad
2.5 sq mi
ZIP Area
4,706
Density / Sq Mi
$38,511
Median Household Income
$30,314
Median Earnings
$977
Median Rent
$146,700
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Multifamily property - Six-unit multifamily building with three 1-bedroom units and three studios.
Where is this multifamily property located?
The property is located at 823 18th St Des Moines, IA.
What is the asking price?
The asking price for this property is $429,000.
What are key features of this property?
This property features: 6‑unit multifamily building with three 1‑bedroom units and three studios; Built in 1900; approximately 2,791 SF total building area; Average rent of $662.50/month; market rents in current condition of $762.50/month based on nearby comps
