Mixed-Use Commercial
New
For Sale
$500,000
241 N Nebraska St, Salem, SD 57058
Versatile commercial property combining retail, food service, lounge, gaming, and vehicle storage functions.
Property Size5,500 SF
Price / SF$90.91
Days on Market5
Property Features for 241 N Nebraska St
General Information
Standard status
Active
Size
5,500 SF
Taxes and HOA fees
Annual Taxes
$2,297
Building Details
Buildings
1
Listing Agency:
Keller Williams Realty Sioux Falls
Listed By:
Amber Ellingsen
(605) 360-6707
Source:
Exprealty
Added: Sep 1
Changed: Sep 4
Last Checked: Sep 4 at 2:47PM
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 Sioux Falls
Investment Insights
Based on property information with market context.
This 5,500-square-foot commercial building supports a broad mix of operating uses. The current configuration includes a gas station, convenience store, cafe restaurant, senior meal service, lounge, casino, and vehicle storage facility, giving the property an established multi-purpose commercial profile.
A large parking area with new concrete serves the building. The property is located at 241 N Nebraska St in Salem, South Dakota, and is offered with its existing combination of retail, service, food, entertainment, and storage functions.
A large parking area with new concrete serves the building. The property is located at 241 N Nebraska St in Salem, South Dakota, and is offered with its existing combination of retail, service, food, entertainment, and storage functions.
Key Highlights
- 5,500 sq feet of usable commercial space
- Current gas station and convenience store operation
- Cafe restaurant and senior meal provider on site
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
NOI $73,260 @ 7.0% cap · market cap 14.65%
Second Best
Mixed Use
$954.6K
$835.3K – $1.11M
NOI $66,825 @ 7.0% cap · market cap 13.36%
Theoretical Best
Office A
$1.49M
$1.31M – $1.74M
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
Location Intelligence
Trade Area within ½ mile
190
Businesses Nearby
4k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Dollar General
Shops & Services
3,328 visits/mo
0.0 miles
Auto Value
Shops & Services
609 visits/mo
0.4 miles
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 Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Versatile commercial property combining retail, food service, lounge, gaming, and vehicle storage functions.
Where is this mixed-use property 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 sq feet of usable commercial space; Current gas station and convenience store operation; Cafe restaurant and senior meal provider on site
