2244 University Ave Hot Springs, SD 57747

Property Details for 2244 University Ave

Year built

2005

Lot size

1.36 lot acres

Property size

9,401 SF

Property type

Grocery and convenience stores

Description

This fee-simple retail property in Hot Springs, South Dakota, offers a compelling investment opportunity. The 9,401 square foot building, constructed in 2005 and situated on a 1.36-acre lot at 2244 University Ave, is currently 100% occupied by a credit-rated Family Dollar under a Net Lease (NN+) agreement. The lease, recently extended through June 30, 2030, includes four 5-year renewal options with 10% rent bumps. Family Dollar has operated successfully at this location for nearly two decades, demonstrating strong sales and a commitment to the area. The property benefits from its strategic location on a main thoroughfare, approximately 0.5 miles from Hot Springs High School, and proximity to significant tourist attractions like Mount Rushmore National Memorial and other Black Hills National Forest destinations. The current owner is investing in improvements, including resurfacing the parking lot. The property's strong rent-to-sales ratio, coupled with the inherent resilience of a discount retailer like Family Dollar, makes this a low-maintenance, high-yield investment with significant long-term potential. The asking price is $907,500, representing a cap rate of 8.00% and a price per square foot of $96.53. This is a single-tenant, single-story building offering a passive income stream with minimal landlord responsibilities.