Building Details

Year built 1964

Floors in Building 1

Flooring type Concrete, Laminate

Building materials Masonry, Metal Siding

Listing Agency: Keller Williams Realty Sioux Falls k***@kw.com Show Phone

Listed By: Amber Ellingsen Show Phone

Added: Aug 31 Changed: Sep 2 Last Checked: Sep 2 at 11:06PM

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MLS# 22606773

Copyright © 2026 Realtor Association of the Sioux Empire MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.

Investment Insights

Based on property information with market context.

Located at 241 N Nebraska St in Salem, South Dakota, this 5,500-square-foot commercial building was constructed in 1964 with masonry and metal siding. Concrete and laminate flooring serve a flexible interior currently used for fuel retail, convenience sales, café dining, senior meal service, lounge activities, casino operations, and vehicle storage. The property sits on 0.5682 acres and is identified for Commercial zoning. A concrete parking area provides substantial on-site parking capacity, with the improvements supporting several existing commercial functions within one building.

Key Highlights

• 5,500‑square‑foot commercial building on 0.5682 acres
• Currently used for gas station and convenience store operations
• Interior includes café, senior meal service, lounge, casino, and vehicle storage functions

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

$37,601

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

7.52%

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%

$752,020 $752.0K

Cap Rate 7%

$537,157 $537.2K

Cap Rate 9%

$417,789 $417.8K

Market Conditions

NOI Build-Up for 5,500 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

$56.1K $10.20/SF

− Vacancy

−$2.4K −$0.43/SF

EGI

$53.7K $9.77/SF

− OpEx

−$16.1K −$2.93/SF

NOI

$37.6K $6.84/SF

Area

McCook County, SD

Vacancy

4.25%

Lease Rate

$10.20 /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%

$752,020

Cap Rate 7%

$537,157

Cap Rate 9%

$417,789

Alternative Uses

Best Use

Specialty Retail

$1.05M

$915.8K – $1.22M (±1% cap)

NOI $73,260 @ 7.0% cap · market cap 14.65%

Second Best

Retail

$910.8K

$797.0K – $1.06M (±1% cap)

NOI $63,756 @ 7.0% cap · market cap 12.75%

Theoretical Best

Office A

$1.49M

$1.31M – $1.74M (±1% cap)

NOI $104,544 @ 7.0% cap · market cap 20.91%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Quick Stop, LLC Restaurant

Suggested Use

Top Pick Real Estate Agency Electrical Service Dental Office Garden Center Furniture & Home Goods Grocery & Convenience Store

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

159

Businesses Nearby

Explore this area Business Placement

Demographics for 57058, SD

2,011

Population

829

Households

2.4

Avg Household Size

42

Median Age

25%

College-Educated

92%

High-School Grad

159.1 sq mi

ZIP Area

13

Density / Sq Mi

$79,119

Median Household Income

$44,630

Median Earnings

$866

Median Rent

$199,700

Median Home Value

Market

Vacancy Rate% for Industrial in Midwest region

4.4% 2019

4.9% 2020

3.6% 2021

3.1% 2022

4.6% 2023

5% 2024

4.9% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Gas station - A single commercial property currently combines fuel retail, food service, lounge, casino, and vehicle storage functions.

Where is this gas station located?

The property is located at 241 N Nebraska St Salem, SD.

What is the asking price?

The asking price for this property is $500,000.

What are key features of this property?

This property features: 5,500‑square‑foot commercial building on 0.5682 acres; Currently used for gas station and convenience store operations; Interior includes café, senior meal service, lounge, casino, and vehicle storage functions