Rapid City Retail Investment
For Sale
Contact for pricing
Pending
1845 Haines Ave, Rapid City, SD 57701
High-visibility retail property with national tenants and long-term leases.
Property Size121,440 SF
Lot Size9.03 Acres
Days on Market176
Property Features for 1845 Haines Ave
General Information
Standard status
Pending
Size
121,440 SF
Class
B
Lot size
9.03 Acres
Property subtype
Retail
Zoning
General Commercial - Retail
Occupancy
100%
Lease Type
NNN
Investment Type
Net Lease
Building Details
Year Built
1987
Year Renovated
2025
Buildings
1
Stories
2
Units
3
Tenancy
Multi
Listing Agency:
RE/MAX Advantage
(605) 430-6246
Listed By:
Randy Olivier, CCIM · License #SD15377
Source:
Crexi
Added: Feb 16
Changed: Aug 8
Last Checked: Jul 24 at 11:26AM
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 RE/MAX Advantage
Investment Insights
Based on property information with market context.
This is a 121,440 square foot retail property situated on 9.03 acres. The property is located just off Interstate 90 in Rapid City, South Dakota, offering high visibility. It features national tenants, including NAPA Auto Parts and Planet Fitness. The property has new 12-year NNN leases with renewal options. Recent capital improvements were completed between 2024 and 2025. Traffic counts exceed 35,000 vehicles per day. The property is located in the primary commercial corridor serving the Black Hills regional market and is offered at a 7.50% Year One cap rate, providing stable, long-term cash flow.
Key Highlights
- High‑visibility retail property located off Interstate 90.
- National tenants: NAPA Auto Parts & Planet Fitness.
- New 12‑year NNN leases with renewal options.
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
$619,963
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
6.84%
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%
$12,399,260
$12.4M
Cap Rate 7%
$8,856,614
$8.9M
Cap Rate 9%
$6,888,478
$6.9M
Market Conditions
NOI Build-Up for 121,440 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
$947.2K $7.80/SF
− Vacancy
−$61.6K −$0.51/SF
EGI
$885.7K $7.29/SF
− OpEx
−$265.7K −$2.19/SF
NOI
$620.0K $5.11/SF
Area
Pennington County, SD
Vacancy
6.50%
Lease Rate
$7.80 /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%
$12,399,260
Cap Rate 7%
$8,856,614
Cap Rate 9%
$6,888,478
Alternative Uses
Best Use
Retail
$20.11M
$17.60M – $23.46M
NOI $1,407,732 @ 7.0% cap · market cap 15.54%
Second Best
Industrial
$8.86M
$7.75M – $10.33M
NOI $619,963 @ 7.0% cap · market cap 6.84%
Theoretical Best
Specialty Retail
$22.02M
$19.26M – $25.68M
NOI $1,541,074 @ 7.0% cap · market cap 17.01%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
408
Businesses Nearby
292k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 34%
Shops & Services 28%
Apparel 18%
Electronics 11%
Kohl's
Apparel
36,250 visits/mo
0.3 miles
Best Buy
Electronics
31,336 visits/mo
0.4 miles
Olive Garden
Dining
29,972 visits/mo
0.4 miles
Books-A-Million
Shops & Services
25,844 visits/mo
0.2 miles
PetSmart
Shops & Services
16,706 visits/mo
0.4 miles
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 Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Shopping center - High-visibility retail property with national tenants and long-term leases.
Where is this shopping center located?
The property is located at 1845 Haines Ave Rapid City, SD.
What is the asking price?
The asking price for this property is $9,060,000.
What are key features of this property?
This property features: High‑visibility retail property located off Interstate 90.; National tenants: **NAPA Auto Parts & Planet Fitness.**; New 12‑year NNN leases with renewal options.
