Under-Construction Warehouse
For Sale
$204,000
2600 N Ginger Ave, Tea, SD 57064
COMMERCIAL, Tea, SD
Property Size1,484 SF
Lot Size0.03 Acres
Price / SF$137.47
Days on Market99
Property Features for 2600 N Ginger Ave
General Information
Property type
Commercial Sale
Property subtype
Other
Property condition
Under Construction
Zoning
PD (Planned Development)
Security features
Security
Subdivision
Trevan Addition to the City of Tea
Directions
From corner of 271st St & 469th Ave, 1/2 mile north to Madison St, east to Ginger Ave, 1 blk south.
Standard status
Active
Lot size
0.03 Acres
Utilities
Utilities
Water Available
Building Details
Year built
2026
Floors in Building
1
Flooring type
Concrete
Building materials
Frame
Roof type
Metal
Listing Agency:
Better Homes and Gardens Real Estate Beyond
(605) 275-4663
Listed By:
Brian Smit · License #17373
(605) 413-7522
Added: May 19
Changed: Aug 25
Last Checked: Aug 25 at 9:06AM
MLS# 22603730
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.
This under-construction warehouse unit is planned as a flexible storage or workspace asset within a condominium setting. The unit measures 28' x 53' and includes a 16' x 14' overhead door, concrete flooring, frame construction, and a metal roof. Plumbing is stubbed for a future buildout, while water and sewer access are available through Tea’s municipal systems. Estimated completion and occupancy are scheduled for October 2026.
The property is located at 2600 N Ginger Ave in Tea, South Dakota, within Tea city limits and zoned PD (Planned Development). Access to I-29 is available through the Tea Exit, Exit 73, and the site is less than a half mile north of 271st Street. The unit may be customized to buyer specifications during construction.
The property is located at 2600 N Ginger Ave in Tea, South Dakota, within Tea city limits and zoned PD (Planned Development). Access to I-29 is available through the Tea Exit, Exit 73, and the site is less than a half mile north of 271st Street. The unit may be customized to buyer specifications during construction.
Key Highlights
- 28' x 53' warehouse unit with a 16' x 14' overhead door
- Under construction with estimated completion and occupancy in October 2026
- Plumbing stubbed for future buildout
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
$10,217
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
5.01%
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%
$204,340
$204.3K
Cap Rate 7%
$145,957
$146.0K
Cap Rate 9%
$113,522
$113.5K
Market Conditions
NOI Build-Up for 1,484 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
$13.4K $9.00/SF
− Vacancy
−$1.3K −$0.90/SF
EGI
$12.0K $8.10/SF
− OpEx
−$1.8K −$1.21/SF
NOI
$10.2K $6.89/SF
Area
Lincoln County, SD
Vacancy
10.00%
Lease Rate
$9.00 /SF/Yr
Expense Ratio
15.00%
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%
$204,340
Cap Rate 7%
$145,957
Cap Rate 9%
$113,522
Alternative Uses
Best Use
Warehouse
$146.0K
$127.7K – $170.3K
NOI $10,217 @ 7.0% cap · market cap 5.01%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$329.4K
$288.3K – $384.4K
NOI $23,061 @ 7.0% cap · market cap 11.30%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
159
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 57064, SD
6,908
Population
2,652
Households
2.6
Avg Household Size
31
Median Age
39%
College-Educated
98%
High-School Grad
25.6 sq mi
ZIP Area
270
Density / Sq Mi
$104,351
Median Household Income
$54,400
Median Earnings
$1,132
Median Rent
$330,800
Median Home Value
Market
Vacancy Rate% for Industrial 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?
Warehouse - Under-construction warehouse unit with overhead access, future plumbing, and proximity to I-29.
Where is this warehouse located?
The property is located at 2600 N Ginger Ave Tea, SD.
What is the asking price?
The asking price for this property is $204,000.
What are key features of this property?
This property features: 28' x 53' warehouse unit with a 16' x 14' overhead door; Under construction with estimated completion and occupancy in October 2026; Plumbing stubbed for future buildout
