Multi-Purpose Facility Near Convention
For Sale
Contact for pricing
1605 W Burnside St, Sioux Falls, SD 57104
Investment opportunity: 14,000 SF mixed-use property near Denny Sanford Center.
Property Size13,536 SF
Lot Size2.61 Acres
Price / SF$192.08
Days on Market197
Property Features for 1605 W Burnside St
General Information
Standard status
Active
Size
13,536 SF
Class
B
Lot size
2.61 Acres
Property subtype
Mixed Use, Retail, Office
Zoning
Commercial
Building Details
Year Built
2001
Stories
1
Listing Agency:
Jim Dunham & Associates
(605) 275-8500
Listed By:
Jim Dunham · License #SD 4531
Source:
Crexi
Added: Jan 26
Changed: Aug 8
Last Checked: Aug 10 at 3:03PM
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 Jim Dunham & Associates
Investment Insights
Based on property information with market context.
This multi-purpose facility is located near the intersection of Western Avenue and Burnside Street, approximately 4 blocks from the Denny Sanford Center and Sioux Falls Convention Center. Constructed in 2001, the property offers 14,000 square feet of space suitable for office, retail, or institutional use. The property is being sold as an investment opportunity, with the current tenant having over 5 years of firm term remaining on their lease agreement. The sale price represents a 7% capitalization rate. The sale price represents a value of $186 per square foot. The land area is 2.61 acres, equivalent to 113,620 square feet. An adjacent 1.4 acres, or 60,984 square feet, is also available for sale. A cross-easement agreement for access will be filed if the subject property and adjacent property are not sold to the same party.
Key Highlights
- Investment opportunity with over 5 years remaining on the current tenant's lease.
- 7% capitalization rate.
- Located near the Denny Sanford Center and Sioux Falls Convention Center.
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
$181,213
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
6.97%
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%
$3,624,260
$3.6M
Cap Rate 7%
$2,588,757
$2.6M
Cap Rate 9%
$2,013,478
$2.0M
Market Conditions
NOI Build-Up for 13,536 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
$284.3K $21.00/SF
− Vacancy
−$42.6K −$3.15/SF
EGI
$241.6K $17.85/SF
− OpEx
−$60.4K −$4.46/SF
NOI
$181.2K $13.39/SF
Area
Sioux Falls, SD
Vacancy
15.00%
Lease Rate
$21.00 /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%
$3,624,260
Cap Rate 7%
$2,588,757
Cap Rate 9%
$2,013,478
Alternative Uses
Best Use
Office B
$2.59M
$2.27M – $3.02M
NOI $181,213 @ 7.0% cap · market cap 6.97%
Second Best
Mixed Use
$2.35M
$2.06M – $2.74M
NOI $164,462 @ 7.0% cap · market cap 6.33%
Theoretical Best
Office A
$3.68M
$3.22M – $4.29M
NOI $257,292 @ 7.0% cap · market cap 9.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
595
Businesses Nearby
Explore this area
Business Placement
Demographics for 57104, SD
26,998
Population
13,952
Households
1.9
Avg Household Size
37
Median Age
25%
College-Educated
90%
High-School Grad
30.4 sq mi
ZIP Area
888
Density / Sq Mi
$59,161
Median Household Income
$39,101
Median Earnings
$849
Median Rent
$183,700
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?
Mixed-use property - Investment opportunity: 14,000 SF mixed-use property near Denny Sanford Center.
Where is this mixed-use property located?
The property is located at 1605 W Burnside St Sioux Falls, SD.
What is the asking price?
The asking price for this property is $2,600,000.
What are key features of this property?
This property features: Investment opportunity with over 5 years remaining on the current tenant's lease.; 7% capitalization rate.; Located near the Denny Sanford Center and Sioux Falls Convention Center.
