NNN Commercial
New
For Sale
$235,000
824 Orchard Street, Iowa City, IA 52246
Commercial building with an active NNN lease, renewal option, and service-oriented layout.
Property Size2,280 SF
Price / SF$103.07
Days on Market5
Property Features for 824 Orchard Street
General Information
Standard status
Active
Size
2,280 SF
Property subtype
Commercial
Zoning
Commercial
Lease Type
NNN
Financials
Asking Price
$235,000
Cap Rate
7.14%
Additional Details
Road Access
Yes
Amenities
ConcreteSlabGrade
Irregular
0.35
CountyRoad,Paved,Highway
Building Details
Year Built
2001
Listing Agency:
Ambrose & Associates, REALTORS
(319) 576-8327
Listed By:
Juliana Corona
(319) 576-8327
Source:
Pinnaclerealtyia
Added: Aug 17
Changed: Aug 21
Last Checked: Aug 21 at 5:12AM
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 Ambrose & Associates, REALTORS
Investment Insights
Based on property information with market context.
This 2,280-square-foot commercial building was constructed in 2001 and features a concrete slab grade. The property is subject to an NNN lease extending through March 2027, with a renewal option in place. Its commercial zoning and building configuration support the existing service-oriented use described for the property, including auto repair or light service operations.
Located at 824 Orchard Street in Iowa City, the property fronts a paved county road identified with highway access. The adjacent building at 121 W Benton St. is also offered for sale, providing an additional nearby commercial property for consideration.
Located at 824 Orchard Street in Iowa City, the property fronts a paved county road identified with highway access. The adjacent building at 121 W Benton St. is also offered for sale, providing an additional nearby commercial property for consideration.
Key Highlights
- 2,280‑square‑foot commercial building constructed in 2001
- NNN lease runs through March 2027 with a renewal option
- 7.14% cap rate based on current income
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
$21,603
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
9.19%
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%
$432,060
$432.1K
Cap Rate 7%
$308,614
$308.6K
Cap Rate 9%
$240,033
$240.0K
Market Conditions
NOI Build-Up for 2,280 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
$32.8K $14.40/SF
− Vacancy
−$2.0K −$0.86/SF
EGI
$30.9K $13.54/SF
− OpEx
−$9.3K −$4.06/SF
NOI
$21.6K $9.48/SF
Area
Johnson County, IA
Vacancy
6.00%
Lease Rate
$14.40 /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%
$432,060
Cap Rate 7%
$308,614
Cap Rate 9%
$240,033
Alternative Uses
Best Use
Retail
$308.6K
$270.0K – $360.1K
NOI $21,603 @ 7.0% cap · market cap 9.19%
Second Best
Industrial
$194.9K
$170.6K – $227.4K
NOI $13,646 @ 7.0% cap · market cap 5.81%
Theoretical Best
Office A
$495.3K
$433.4K – $577.9K
NOI $34,671 @ 7.0% cap · market cap 14.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,440
Businesses Nearby
239k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 55%
Shops & Services 21%
Groceries 12%
Office Supplies 5%
McDonald's
Dining
37,057 visits/mo
0.2 miles
Aldi
Groceries
28,506 visits/mo
0.4 miles
Culver's
Dining
26,507 visits/mo
0.4 miles
Kum & Go
Shops & Services
26,219 visits/mo
0.1 miles
Starbucks
Dining
24,488 visits/mo
0.2 miles
Demographics for 52246, IA
22,829
Population
10,627
Households
2.1
Avg Household Size
29
Median Age
67%
College-Educated
95%
High-School Grad
16.7 sq mi
ZIP Area
1,367
Density / Sq Mi
$55,088
Median Household Income
$28,598
Median Earnings
$1,049
Median Rent
$327,100
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?
NNN property - Commercial building with an active NNN lease, renewal option, and service-oriented layout.
Where is this nnn property located?
The property is located at 824 Orchard Street Iowa City, IA.
What is the asking price?
The asking price for this property is $235,000.
What are key features of this property?
This property features: 2,280‑square‑foot commercial building constructed in 2001; NNN lease runs through March 2027 with a renewal option; 7.14% cap rate based on current income
