Building Details

Year Built 1950

Listing Agency: The Experience Real Estate Show Phone

Listed By: Amy Stockberger Real Estate Show Phone

Source: Findahomeinsiouxfalls

Added: Jul 26 Changed: Aug 29 Last Checked: Aug 29 at 4:47PM

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Investment Insights

Based on property information with market context.

This 2,428-square-foot triplex, built in 1950, contains three separate units with a 3-bedroom, 1-bath residence, a 2-bedroom, 1-bath residence, and a 1-bedroom, 1-bath residence. The largest unit includes an attached garage and basement. Each residence has its own private entrance and washer and dryer, creating distinct living arrangements within the property.

Located at 404 W 1st Ave in Lennox, South Dakota, the property occupies a corner lot. Rent includes garbage service, snow removal, and lawn care. The unit mix provides three different residential configurations within one multifamily building.

Key Highlights

• Three‑unit property with 3BR‑1BA, 2BR‑1BA, and 1BR‑1BA residences
• 2,428 SF multifamily property built in 1950
• 3BR unit includes an attached garage and basement

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

$20,451

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

8.18%

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%

$409,020 $409.0K

Cap Rate 7%

$292,157 $292.2K

Cap Rate 9%

$227,233 $227.2K

Market Conditions

NOI Build-Up for 2,428 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

$30.6K $12.60/SF

− Vacancy

−$1.4K −$0.57/SF

EGI

$29.2K $12.03/SF

− OpEx

−$8.8K −$3.61/SF

NOI

$20.5K $8.42/SF

Area

Lincoln County, SD

Vacancy

4.50%

Lease Rate

$12.60 /SF/Yr

Expense Ratio

30.00%

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%

$409,020

Cap Rate 7%

$292,157

Cap Rate 9%

$227,233

Alternative Uses

Best Use

Multifamily LT 5

$292.2K

$255.6K – $340.9K (±1% cap)

NOI $20,451 @ 7.0% cap · market cap 8.18%

Second Best

Apartment 5plus

$269.8K

$236.0K – $314.7K (±1% cap)

NOI $18,883 @ 7.0% cap · market cap 7.55%

Theoretical Best

Office A

$539.0K

$471.6K – $628.9K (±1% cap)

NOI $37,731 @ 7.0% cap · market cap 15.09%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Triplexes

Suggested Use

Top Pick Building Supply Law Firm (Bike/Boat/Book/etc) Store Pharmacy Big Box & Wholesale Store Storage Facility

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

186

Businesses Nearby

Explore this area Business Placement

Demographics for 57039, SD

3,717

Population

1,554

Households

2.4

Avg Household Size

40

Median Age

23%

College-Educated

92%

High-School Grad

91.9 sq mi

ZIP Area

40

Density / Sq Mi

$79,209

Median Household Income

$46,947

Median Earnings

$925

Median Rent

$242,700

Median Home Value

Market

Vacancy Rate% for Multifamily in Midwest region

6.5% 2022

7.5% 2023

7.8% 2024

8% 2025

Questions? Ask Rey

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What type of property is this? Where is this triplexes located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Triplex - Triplex with varied unit sizes, private entrances, and in-unit laundry across a corner-lot setting.

Where is this triplex located?

The property is located at 404 W 1st Ave Lennox, SD.

What is the asking price?

The asking price for this property is $250,000.

What are key features of this property?

This property features: Three‑unit property with 3BR‑1BA, 2BR‑1BA, and 1BR‑1BA residences; 2,428 SF multifamily property built in 1950; 3BR unit includes an attached garage and basement