Convenience Store Building with
For Sale
$950,000
Pending
955 Mormon Trek Blvd, Iowa City, IA 52246
COMMERCIAL - IowaCity, IA
Property Size2,752 SF
Lot Size0.81 Acres
Days on Market573
Property Features for 955 Mormon Trek Blvd
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
CN1
Interior features
ZeroStepEntry
Directions
Just north of the Mormon Trek and Benton St intersection
Subdivision
IowaCity
Standard status
Pending
APN
1017259002-1017260001
Lot size
0.81 Acres
Taxes and HOA fees
Tax Year
2023
Tax Annual Amount
23746
Utilities
Heating system
Forced Air, Natural Gas
Cooling system
Central Air
Building Details
Year built
1981
Flooring type
Tile
Building materials
Block, Frame
Listing Agency:
Lepic-Kroeger, REALTORS
(319) 351-8811
Listed By:
Jeff Edberg · License #B33730000
(319) 331-6187
Added: Jan 20, 2025
Changed: Aug 4
Last Checked: Aug 16 at 11:06PM
MLS# 202500564
Copyright © 2026 Iowa City Area Association of REALTORS®. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 2,752-square-foot commercial building occupies 0.81 acres and is configured for neighborhood-oriented retail or convenience use. The interior includes a cooler, fixed counters, and a checkout counter. Tile flooring, central air, forced-air natural gas heat, and zero-step entry are also in place. Built in 1981, the structure uses block and frame construction.
The property fronts Mormon Trek Blvd and Benton St in Iowa City, with the source information identifying high traffic counts along both roads. It is zoned CN1, or Neighborhood Commercial Zone, which supports small-scale retail, personal service, and convenience-store uses. Fuel tanks, the former canopy, and fuel pumps associated with the previous Kum & Go operation have been removed, leaving a building-oriented commercial property with existing retail fixtures and signage capacity.
The property fronts Mormon Trek Blvd and Benton St in Iowa City, with the source information identifying high traffic counts along both roads. It is zoned CN1, or Neighborhood Commercial Zone, which supports small-scale retail, personal service, and convenience-store uses. Fuel tanks, the former canopy, and fuel pumps associated with the previous Kum & Go operation have been removed, leaving a building-oriented commercial property with existing retail fixtures and signage capacity.
Key Highlights
- 2,752 SF commercial building on 0.81 acres
- CN1 zoning for small‑scale retail, personal service, and convenience‑store use
- Cooler, fixed counters, and checkout counter remain in the building
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
$29,254
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
3.08%
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%
$585,080
$585.1K
Cap Rate 7%
$417,914
$417.9K
Cap Rate 9%
$325,044
$325.0K
Market Conditions
NOI Build-Up for 2,752 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
$42.6K $15.48/SF
− Vacancy
−$3.6K −$1.31/SF
EGI
$39.0K $14.17/SF
− OpEx
−$9.8K −$3.54/SF
NOI
$29.3K $10.63/SF
Area
Johnson County, IA
Vacancy
8.44%
Lease Rate
$15.48 /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%
$585,080
Cap Rate 7%
$417,914
Cap Rate 9%
$325,044
Alternative Uses
Best Use
Specialty Retail
$417.9K
$365.7K – $487.6K
NOI $29,254 @ 7.0% cap · market cap 3.08%
Second Best
Retail
$372.5K
$326.0K – $434.6K
NOI $26,076 @ 7.0% cap · market cap 2.74%
Theoretical Best
Office A
$597.8K
$523.1K – $697.5K
NOI $41,848 @ 7.0% cap · market cap 4.41%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
284
Businesses Nearby
16k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 85%
Dining 7%
Beauty & Spa 5%
Shops & Services 4%
Fareway
Groceries
13,806 visits/mo
0.1 miles
Thai Spice
Dining
1,079 visits/mo
0.2 miles
Cost Cutters
Beauty & Spa
783 visits/mo
0.2 miles
Kum & Go
Shops & Services
577 visits/mo
0.1 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?
Grocery and convenience store - CN1 zoning supports small-scale retail, personal service, and convenience-store use.
Where is this grocery and convenience store located?
The property is located at 955 Mormon Trek Blvd Iowa City, IA.
What is the asking price?
The asking price for this property is $950,000.
What are key features of this property?
This property features: 2,752 SF commercial building on 0.81 acres; CN1 zoning for small‑scale retail, personal service, and convenience‑store use; Cooler, fixed counters, and checkout counter remain in the building
