3556 Marnie Ave 30,080 SF Specialty Building Offered at $4,225,000 at a 7.63% Cap Rate in Waterloo, IA 50701

Beautiful complex centrally located by the corner of Highway 20 & Highway 63 in Waterloo Iowa.
Storage Website: https://www.cedarcrossingstorage.com/
Development Website: https://www.cedarvalleycrossing.com/
Phase 1 has the following:
28,800 sqft. of indoor storage. Drive up units with sizes ranging in 10x15, 10x20, & 10x30.
1,280 sqft. of climate controlled office & shop space. (Leased to a Paintless dent removal company @ $1,325 / mo.)
48,680 sqft. of outdoor parking
Total: 78,760 total leasable square footage.
157 Indoor Units
1 - office / shop (leased $1,325 / mo.)
122 - 10x40 Outdoor Parking Spaces (400 sqft. each)
280 Total Units
Opened in October 2023.
10x15: $85.00 / mo.
10x20: $115.00 / mo.
10x30: $135.00 / mo.
Outdoor Parking: $45.00 / mo.
Occupancy %: 3.27.2026
Indoor Units: 125 / 79.62%
Outdoor Spaces: 64 / 52.46%
Lease up averaging 2-3 units / week.
NOI - Current:
Current NOI: $250,206.56
COC: 29.61%
Payback Period: 3.38 years (@ $2,215,000 selling price)
NOI - 95% Occupancy
NOI: $322,318.72
COC: 36.67%
Payback Period: 2.73 years (@ $2,215,000 selling price)
Features:
Security Fence
Automated Gate
High definition security cameras
Climate controlled office & shop.
15 - Year / Tax Incentive (TIF) package from the city. (graduated scale. displayed in the due diligence attachments)
Current Taxes: $71,717.59
Tax Rebate from City of Waterloo IA: (-$50,776.06)
Net Annual Taxes: $20,941.53
Projected stabilization: July 2026
Financials & Proforma updated monthly & performed by CPA. Sales tax paid by CPA.
Tax Incentive bi annual reimbursement from city performed by CPA.
Owners are willing to stay and help run / operate the business for a period of time if needed. Will do it for lower than market rate average management fee.
Phase 1:
Phase 1 NOI at Current Occupancy: $250,206.56
COC Return: 29.61%
Payback Period: 3.38 years (@ $4,225,000 selling price)
Phase 1 NOI at 95% Occupancy: $322,318.72
COC Return: 36.67%
Payback Period: 2.73 years (@ $4,225,000 selling price)
Phase 2:
Seller has plans they can share regarding 2 options for 2 different Phase 2 buildout options.
Each plan would add additional buildings, but would reduce the outdoor parking space.
Seller is willing to work with the buyer on performing a design / build project to build out Phase 2 if interested.
The NOI for the Phase 2 buildout in either scenario looks really good.
Phase 2 - Option 1 NOI at Stabilization: $444,376.11
Phase 2 - Option 2 NOI at Stabilization: $459,567.05
Note(s):
Seller financing available. 5% down. No payments, no interest until July 2026 with closing July 2026.
Starlink satellite high speed internet & wifi on site.
Remotely controlled bluetooth locks installed on 5 units as a test. Requires no modification to the doors.
Buyers can elect to have these removed before closing or sellers can install the bluetooth locks on the rest of the units.
Seller Note(s):
After the buyer sees the locks, they are really going to like them. Gives you the ability to lock a unit instantly and allows for automated check in / check out. Makes remote site management a lot easier.
One of the owners is a licensed realtor in the state of Iowa.