Music Station Gas & C-Store
Retail | 8.00% CAP | 2,000 SqFt
Marketing description
This property is strategically positioned at 709 1st Street West along State Highway 150, Independence's primary commercial corridor. The site benefits from consistent daily traffic generated by local commuters, regional travelers, and the surrounding Buchanan County workforce. Its location on the city's main east-west arterial ensures strong visibility and a steady flow of daily-needs customers, while proximity to U.S. Highway 20 further amplifies regional traffic exposure.
Independence, Iowa serves as the economic and healthcare hub of Buchanan County, anchored by the Buchanan County Health Center. The market features a median household income of $73,806, a homeownership rate of 72.2% well above the national average and steady property value appreciation of 5.35% year-over year. With major retailers like Walmart and Fareway anchoring consumer demand, the trade area presents a dependable environment for convenience retail operations and long-term investment stability.
Music Station is a premier convenience and fuel provider located at 709 1st Street West, Independence, IA, situated within the C-1 Central Commercial District on the city's primary commercial thoroughfare. The 2,000 SF facility operates a recession-resilient, 7-day-a-week retail concept generating over $3.5 million in annual revenue through a diversified model integrating automotive fuel, convenience merchandise, lottery, and ATM services. Operated and guaranteed by Iowa Investment, LLC, an experienced franchisee, Music Station demonstrates robust corporate health with $280,406 in EBITDAR and an impressive 2.50x coverage ratio on the initial rent obligation, backing the long-term 20-year absolute NNN lease with exceptional financial security and positioning the brand as a well-capitalized leader in the regional convenience retail sector.
Investment highlights
- New 20-Year Absolute NNN Lease - This investment features a new 20-year absolute NNN lease with a franchisee guarantee from Iowa Investment, LLC, ensuring a passive income with no landlord responsibilities. Priced at $1,400,000 with an 8.00% cap rate on Year 1 NOI of $112,000, it offers long-term stability and clear income projections.
- Diverse Revenue Streams & Prime Location - The property benefits from diverse revenue sources such as fuel, liquor, lottery, ATM, and convenience store (C-store) sales. Open 7 days a week, it offers a wide range of products including beer, liquor, tobacco, lottery, ATM services, and snacks. Positioned on Independence's primary east-west corridor, this location enjoys high visibility and consistent consumer traffic.
- Strong Financials - Tenant financial strength is shown by a 2.50x EBITDAR coverage ratio on the Year 1 rent of $112,000. The layout supports 7-day operations with fuel, a convenience store, and ATM, ensuring steady cash flow. This secures the franchisee guarantee from Iowa Investment, LLC over the 20-year lease and four 5-year renewals.
- The property boasts direct frontage on 1st Street West (State Highway 150), capturing 4,000 to 6,200 AADT. This primary commercial corridor connects directly to US Highway 20, funneling regional traffic past the site. Future infrastructure investments from the Highway 150 Super Two Planning Study will further enhance traffic flow.
- Fixed 10% Rental Increases - The lease incorporates fixed 10% rental increases every five years, elevating NOI to $123,200 in Year 6, providing a strong hedge against inflation and built-in income growth.
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