Two-Story Office Building with
For Sale
$1,185,000
330 KNOLLWOOD, Rapid City, SD 57701
5,992 SF office building with two levels, parking for 40-plus vehicles, and updated exterior improvements.
Property Size5,992 SF
Price / SF$197.76
Days on Market869
Property Features for 330 KNOLLWOOD
General Information
Standard status
Active
Size
5,992 SF
Total Parking Spaces
40
Property subtype
Office
Additional Details
Highway Access
Yes
Office Units
12
Amenities
Central Air
3
Asphalt.
Building Details
Stories
2
Listing Agency:
KELLER WILLIAMS REALTY BLACK HILLS
(605) 343-7500
Listed By:
CHRISTOPHER LONG · License #1840
(605) 939-4489
Source:
Xome
Added: Apr 19, 2024
Changed: Sep 1
Last Checked: Sep 4 at 3:42AM
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 KELLER WILLIAMS REALTY BLACK HILLS
Investment Insights
Based on property information with market context.
This highly visible two-story office building offers a total of 5,992 SF across a main level and a lower level, with a layout designed for flexible occupancy. The main level includes six offices, open workspace suitable for cubicles, a reception area, a meeting room, and a kitchen. The lower level provides a similar configuration with six offices, open workspace, reception, a meeting room, and additional storage. Both levels have direct access to the parking lot, supporting the option to occupy one floor while leasing the other. Office furniture and workstations currently in the building may be included with the sale.
The property is described as offering excellent access to I-90 Exit 56 and Haines Avenue. It also features newly repaved parking with over 40 spaces. Exterior updates include a new roof, fascia, gutters, downspouts, siding, an exterior deck, and a rear entrance door.
The property is described as offering excellent access to I-90 Exit 56 and Haines Avenue. It also features newly repaved parking with over 40 spaces. Exterior updates include a new roof, fascia, gutters, downspouts, siding, an exterior deck, and a rear entrance door.
Key Highlights
- 5,992 SF office building with two levels, each offering a similar office layout
- Main level includes 6 offices, open workspace, reception, meeting room, and kitchen
- Lower level includes 6 offices, open workspace, reception, meeting room, and additional storage
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
$57,299
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
4.84%
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%
$1,145,980
$1.1M
Cap Rate 7%
$818,557
$818.6K
Cap Rate 9%
$636,656
$636.7K
Market Conditions
NOI Build-Up for 5,992 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
$89.9K $15.00/SF
− Vacancy
−$13.5K −$2.25/SF
EGI
$76.4K $12.75/SF
− OpEx
−$19.1K −$3.19/SF
NOI
$57.3K $9.56/SF
Area
Pennington County, SD
Vacancy
15.00%
Lease Rate
$15.00 /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%
$1,145,980
Cap Rate 7%
$818,557
Cap Rate 9%
$636,656
Alternative Uses
Best Use
Office B
$818.6K
$716.2K – $955.0K
NOI $57,299 @ 7.0% cap · market cap 4.84%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$1.09M
$950.5K – $1.27M
NOI $76,038 @ 7.0% cap · market cap 6.42%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
12
Office units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
538
Businesses Nearby
Explore this area
Business Placement
Demographics for 57701, SD
46,258
Population
20,526
Households
2.3
Avg Household Size
36
Median Age
28%
College-Educated
93%
High-School Grad
52.2 sq mi
ZIP Area
886
Density / Sq Mi
$52,733
Median Household Income
$34,971
Median Earnings
$892
Median Rent
$229,900
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - 5,992 SF office building with two levels, parking for 40-plus vehicles, and updated exterior improvements.
Where is this office building located?
The property is located at 330 KNOLLWOOD Rapid City, SD.
What is the asking price?
The asking price for this property is $1,185,000.
What are key features of this property?
This property features: 5,992 SF office building with two levels, each offering a similar office layout; Main level includes 6 offices, open workspace, reception, meeting room, and kitchen; Lower level includes 6 offices, open workspace, reception, meeting room, and additional storage
