Medical Facility Investment
For Sale
Contact for pricing
5264 Council St NE, Cedar Rapids, IA 52402
Long-term sale-leaseback with credit-rated Mercy Medical in prime location.
Property Size70,326 SF
Price / SF$130.82
Days on Market801
Property Features for 5264 Council St NE
General Information
Standard status
Active
Size
70,326 SF
Class
B
Property subtype
Office
Zoning
S-MC
Occupancy
100%
Lease Type
NNN
Investment Type
Sale/Leaseback
Net Operating Income
$629,418
Building Details
Year Built
2003
Buildings
1
Stories
1
Tenancy
Multi
Listing Agency:
WSG CRE
Listed By:
Josh Seamans · License #IA B57696000
(319) 343-5542
Source:
Crexi
Added: Jun 26, 2024
Changed: Aug 23
Last Checked: Sep 2 at 9:19PM
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 WSG CRE
Investment Insights
Based on property information with market context.
This property presents an investment opportunity through a long-term sale-leaseback arrangement with Mercy Medical. The property is located in a prime location and hosts a variety of essential medical services, including urgent care and dialysis groups, along with several other medical practice groups. The lease is structured as NNN, with annual escalations in the base rent. The property size is 70326 square feet.
Key Highlights
- Long‑term sale‑leaseback with credit‑rated Mercy Medical, providing stable and secure income.
- NNN lease with annual escalations in base rent, ensuring steady income growth.
- Prime location with a variety of essential medical services, including urgent care and dialysis.
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
$524,069
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
5.70%
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%
$10,481,380
$10.5M
Cap Rate 7%
$7,486,700
$7.5M
Cap Rate 9%
$5,822,989
$5.8M
Market Conditions
NOI Build-Up for 70,326 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
$970.5K $13.80/SF
− Vacancy
−$97.0K −$1.38/SF
EGI
$873.4K $12.42/SF
− OpEx
−$349.4K −$4.97/SF
NOI
$524.1K $7.45/SF
Area
Cedar Rapids, IA
Vacancy
10.00%
Lease Rate
$13.80 /SF/Yr
Expense Ratio
40.00%
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%
$10,481,380
Cap Rate 7%
$7,486,700
Cap Rate 9%
$5,822,989
Alternative Uses
Best Use
Healthcare Medical
$7.49M
$6.55M – $8.73M
NOI $524,069 @ 7.0% cap · market cap 5.70%
Second Best
Office B
$4.82M
$4.22M – $5.63M
NOI $337,740 @ 7.0% cap · market cap 3.67%
Theoretical Best
Specialty Retail
$10.18M
$8.91M – $11.87M
NOI $712,490 @ 7.0% cap · market cap 7.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
969
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 52402, IA
42,072
Population
19,848
Households
2.1
Avg Household Size
36
Median Age
41%
College-Educated
95%
High-School Grad
13.7 sq mi
ZIP Area
3,071
Density / Sq Mi
$71,319
Median Household Income
$41,753
Median Earnings
$992
Median Rent
$188,700
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.
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Long-term sale-leaseback with credit-rated Mercy Medical in prime location.
Where is this medical office space located?
The property is located at 5264 Council St NE Cedar Rapids, IA.
What is the asking price?
The asking price for this property is $9,200,000.
What are key features of this property?
This property features: Long‑term sale‑leaseback with credit‑rated Mercy Medical, providing stable and secure income.; NNN lease with annual escalations in base rent, ensuring steady income growth.; Prime location with a variety of essential medical services, including urgent care and dialysis.
