Corner Automotive
For Sale
$450,000
1585 VALLEY DR, Rapid City, SD 57703
Heated, air-conditioned building combines showroom and service space on a paved corner site along Highway 44.
Property Size1,920 SF
Lot Size0.33 Acres
Price / SF$234.38
Days on Market454
Property Features for 1585 VALLEY DR
General Information
Standard status
Active
Size
1,920 SF
Lot size
0.33 Acres
Property subtype
Retail
Site & Location
Corner Location
Yes
Traffic Count
16,014 vehicles/day
Highway Access
Yes
Road Access
Yes
Additional Details
Service Bays
1
Amenities
Heated
Air-conditioned
Metal roof
Central Air
3
Asphalt.
Building Details
Year Renovated
2022
Buildings
1
Abandoned
No
Listing Agency:
KELLER WILLIAMS REALTY BLACK HILLS
(605) 343-7500
Listed By:
CHRISTOPHER LONG · License #1840
Source:
Xome
Added: Jun 3, 2025
Changed: Aug 30
Last Checked: Aug 30 at 2:09PM
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 automotive property includes a 1,920 SF building on a 0.33-acre paved lot. The interior provides a 1,275 SF showroom and a 570 SF garage or service bay, with a layout that can support showroom, service, retail, or office operations. Central air and heating serve the building, which was renovated inside and out in 2022. A metal roof adds to the building improvements.
The property occupies a corner along Highway 44 at Valley Drive in Rapid City. Highway frontage provides exposure to 16,014 vehicles per day based on the 2024 MPO count. The site is currently used as a car lot, with the building and paved lot configured for automotive operations.
The property occupies a corner along Highway 44 at Valley Drive in Rapid City. Highway frontage provides exposure to 16,014 vehicles per day based on the 2024 MPO count. The site is currently used as a car lot, with the building and paved lot configured for automotive operations.
Key Highlights
- 1,920 SF building on a 0.33‑acre paved lot
- 1,275 SF showroom and 570 SF garage/service bay
- Renovated inside and out in 2022
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
$22,257
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
4.95%
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%
$445,140
$445.1K
Cap Rate 7%
$317,957
$318.0K
Cap Rate 9%
$247,300
$247.3K
Market Conditions
NOI Build-Up for 1,920 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
$34.6K $18.00/SF
− Vacancy
−$2.8K −$1.44/SF
EGI
$31.8K $16.56/SF
− OpEx
−$9.5K −$4.97/SF
NOI
$22.3K $11.59/SF
Area
Pennington County, SD
Vacancy
8.00%
Lease Rate
$18.00 /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%
$445,140
Cap Rate 7%
$317,957
Cap Rate 9%
$247,300
Alternative Uses
Best Use
Retail
$318.0K
$278.2K – $371.0K
NOI $22,257 @ 7.0% cap · market cap 4.95%
Second Best
Industrial
$140.0K
$122.5K – $163.4K
NOI $9,802 @ 7.0% cap · market cap 2.18%
Theoretical Best
Specialty Retail
$348.1K
$304.6K – $406.1K
NOI $24,365 @ 7.0% cap · market cap 5.41%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Service bays
16,014 VPD
Traffic count
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
194
Businesses Nearby
5k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 94%
Home Improvements & Furnishings 6%
Sinclair
Shops & Services
2,561 visits/mo
0.1 miles
FedEx Office Print & Ship Center
Shops & Services
2,069 visits/mo
0.4 miles
Ferguson
Home Improvements & Furnishings
288 visits/mo
0.2 miles
Demographics for 57703, SD
16,933
Population
7,476
Households
2.3
Avg Household Size
37
Median Age
21%
College-Educated
92%
High-School Grad
129.8 sq mi
ZIP Area
130
Density / Sq Mi
$84,495
Median Household Income
$41,342
Median Earnings
$1,394
Median Rent
$250,300
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Automotive property - Heated, air-conditioned building combines showroom and service space on a paved corner site along Highway 44.
Where is this automotive property located?
The property is located at 1585 VALLEY DR Rapid City, SD.
What is the asking price?
The asking price for this property is $450,000.
What are key features of this property?
This property features: 1,920 SF building on a 0.33‑acre paved lot; 1,275 SF showroom and 570 SF garage/service bay; Renovated inside and out in 2022
