Restaurant Building with
For Sale
$695,000
910 E 2nd Avenue, Indianola, IA 50125
Restaurant building with a dedicated kitchen, two restrooms, office space, fireplace, and a drive-through window.
Property Size1,935 SF
Lot Size0.57 Acres
Price / SF$359.17
Days on Market384
Property Features for 910 E 2nd Avenue
General Information
Standard status
Active
Size
1,935 SF
Lot size
0.57 Acres
Property subtype
General Commercial
Taxes and HOA fees
Annual Taxes
$23,524
Amenities
Central Air, Gas
3
Asphalt, Shingle
C
Concrete Road.
Building Details
Year Built
2021
Listing Agency:
Keller Williams Realty GDM
(515) 612-3389
Listed By:
Mariela Mendoza
(515) 612-3389
Source:
Xome
Added: Aug 5, 2025
Changed: Aug 23
Last Checked: Aug 22 at 9:57AM
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 Keller Williams Realty GDM
Investment Insights
Based on property information with market context.
This restaurant building is currently operating as a donut shop and offers a functional layout for day-to-day service. The interior includes a kitchen area, office space, two restrooms, and a cozy fireplace. A drive-through window supports quick ordering and customer flow, while the property also features a private parking lot designed for convenience.
The building is positioned on a main road in Indianola, with visibility and steady traffic flow highlighted as key benefits. On-site parking is described as providing plenty of spaces for both customers and staff.
The property is currently leased out, with the lease ending in 2030, making it well-suited for buyers seeking an income-producing asset with established operations.
The building is positioned on a main road in Indianola, with visibility and steady traffic flow highlighted as key benefits. On-site parking is described as providing plenty of spaces for both customers and staff.
The property is currently leased out, with the lease ending in 2030, making it well-suited for buyers seeking an income-producing asset with established operations.
Key Highlights
- Commercial building currently operating as a donut shop
- Located on a main road in Indianola on 0.57 acres with a private parking lot and lots of parking spaces
- Interior layout includes a dedicated kitchen area, office space, and 2 restrooms
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
$28,404
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
4.09%
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%
$568,080
$568.1K
Cap Rate 7%
$405,771
$405.8K
Cap Rate 9%
$315,600
$315.6K
Market Conditions
NOI Build-Up for 1,935 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
$40.6K $21.00/SF
− Vacancy
−$2.8K −$1.43/SF
EGI
$37.9K $19.57/SF
− OpEx
−$9.5K −$4.89/SF
NOI
$28.4K $14.68/SF
Area
Warren County, IA
Vacancy
6.80%
Lease Rate
$21.00 /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%
$568,080
Cap Rate 7%
$405,771
Cap Rate 9%
$315,600
Alternative Uses
Best Use
Specialty Retail
$405.8K
$355.1K – $473.4K
NOI $28,404 @ 7.0% cap · market cap 4.09%
Second Best
—
—
no second resolved use
Theoretical Best
Flex RnD
$1.86M
$1.63M – $2.17M
NOI $130,388 @ 7.0% cap · market cap 18.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
592
Businesses Nearby
41k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 86%
Dining 14%
Indianola #6
Shops & Services
14,252 visits/mo
0.2 miles
Casey's General Store
Shops & Services
13,557 visits/mo
0.4 miles
Dollar General
Shops & Services
6,151 visits/mo
0.5 miles
A&W Restaurant
Dining
5,931 visits/mo
0.4 miles
BMO Harris Bank
Shops & Services
1,153 visits/mo
0.5 miles
Demographics for 50125, IA
20,906
Population
8,039
Households
2.6
Avg Household Size
39
Median Age
34%
College-Educated
97%
High-School Grad
162.4 sq mi
ZIP Area
129
Density / Sq Mi
$86,463
Median Household Income
$42,822
Median Earnings
$975
Median Rent
$248,700
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?
Conventional restaurant - Restaurant building with a dedicated kitchen, two restrooms, office space, fireplace, and a drive-through window.
Where is this conventional restaurant located?
The property is located at 910 E 2nd Avenue Indianola, IA.
What is the asking price?
The asking price for this property is $695,000.
What are key features of this property?
This property features: Commercial building currently operating as a donut shop; Located on a main road in Indianola on 0.57 acres with a private parking lot and lots of parking spaces; Interior layout includes a dedicated kitchen area, office space, and 2 restrooms
