117-Room Hotel
For Sale
Contact for pricing
2124 N LACROSSE ST, Rapid City, SD 57701
As-is hospitality asset offering redevelopment, repositioning, and adaptive reuse potential.
Property Size46,659 SF
Price / SF$68.58
Days on Market116
Property Features for 2124 N LACROSSE ST
General Information
Standard status
Active
Size
46,659 SF
Property subtype
Hospitality
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Asking Price
$3,200,000
Building Details
Year Built
1977
Stories
2
Units
1
Listing Agency:
Hospitality & Commercial Brokers
(307) 686-9500
Listed By:
Pat Green · License #WY 491
Source:
Crexi
Added: May 7
Changed: Aug 30
Last Checked: Aug 30 at 8:31AM
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 Hospitality & Commercial Brokers
Investment Insights
Based on property information with market context.
The property is a 117-room hotel comprising 46,659 square feet and constructed in 1977. It is offered in as-is condition, with the existing scale and layout supporting renovation, hospitality repositioning, or adaptive reuse strategies.
The asset occupies a commercial location at 2124 N LaCrosse St in Rapid City, South Dakota, directly off Interstate 90 and LaCrosse Street. Nearby commercial activity includes retail and restaurant development featuring Chick-fil-A and Les Schwab. The property is also situated within a market supported by Ellsworth Air Force Base and ongoing regional investment.
Limited recent additions to Rapid City’s midscale hotel supply and continued demand for workforce-oriented and affordable housing are identified as market factors relevant to future redevelopment planning.
The asset occupies a commercial location at 2124 N LaCrosse St in Rapid City, South Dakota, directly off Interstate 90 and LaCrosse Street. Nearby commercial activity includes retail and restaurant development featuring Chick-fil-A and Les Schwab. The property is also situated within a market supported by Ellsworth Air Force Base and ongoing regional investment.
Limited recent additions to Rapid City’s midscale hotel supply and continued demand for workforce-oriented and affordable housing are identified as market factors relevant to future redevelopment planning.
Key Highlights
- 117‑room hotel with 46,659 SF of building area
- As‑is property constructed in 1977
- Directly off Interstate 90 and LaCrosse Street
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
$269,148
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
8.41%
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%
$5,382,960
$5.4M
Cap Rate 7%
$3,844,971
$3.8M
Cap Rate 9%
$2,990,533
$3.0M
Market Conditions
NOI Build-Up for 46,659 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
$643.9K $13.80/SF
− Vacancy
−$77.3K −$1.66/SF
EGI
$566.6K $12.14/SF
− OpEx
−$297.5K −$6.38/SF
NOI
$269.1K $5.77/SF
Area
Pennington County, SD
Vacancy
12.00%
Lease Rate
$13.80 /SF/Yr
Expense Ratio
52.50%
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%
$5,382,960
Cap Rate 7%
$3,844,971
Cap Rate 9%
$2,990,533
Alternative Uses
Best Use
Hotel Hospitality
$3.84M
$3.36M – $4.49M
NOI $269,148 @ 7.0% cap · market cap 8.41%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$8.46M
$7.40M – $9.87M
NOI $592,103 @ 7.0% cap · market cap 18.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
506
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
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - As-is hospitality asset offering redevelopment, repositioning, and adaptive reuse potential.
Where is this hotel located?
The property is located at 2124 N LACROSSE ST Rapid City, SD.
What is the asking price?
The asking price for this property is $3,200,000.
What are key features of this property?
This property features: 117‑room hotel with 46,659 SF of building area; As‑is property constructed in 1977; Directly off Interstate 90 and LaCrosse Street
