Turnkey 8-Plex Apartment
For Sale
Contact for pricing
3505 S Hawthorne Ave, Sioux Falls, SD 57105
Fully leased 8-plex with coin-operated laundry, detached garages, through-the-wall A/C, boiler heat, and ample on-site parking.
Property Size3,552 SF
Price / SF$197.07
Days on Market122
Property Features for 3505 S Hawthorne Ave
General Information
Standard status
Active
Size
3,552 SF
Total Parking Spaces
8
Property subtype
Multifamily
Occupancy
95%
Investment Type
Stabilized
Net Operating Income
$54,569
Additional Details
Multifamily Units
8
Amenities
coin-operated laundry
detached garages
through-the-wall A/C units
boiler heat
ample on-site parking
Building Details
Year Built
1973
Units
8
Tenancy
Multi
Listing Agency:
Alpine Companies
Listed By:
Jackson Dorhout · License #17300
Source:
Crexi
Added: May 8
Changed: Aug 25
Last Checked: Sep 5 at 10:19PM
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 Alpine Companies
Investment Insights
Based on property information with market context.
This turnkey 8-plex apartment building is offered fully leased. The property includes coin-operated laundry, detached garages, through-the-wall A/C units, and boiler heat. On-site parking is available, and the building is supported by utility reimbursement fees and a Ratio Utility Billing System (RUBS) already in place to help offset utility expenses.
The property is located at 3505 S Hawthorne Ave in Sioux Falls, SD 57105.
For prospective buyers and brokers, the combination of established occupancy, on-site revenue from coin-operated laundry, and in-place utility billing supports straightforward operating management.
The property is located at 3505 S Hawthorne Ave in Sioux Falls, SD 57105.
For prospective buyers and brokers, the combination of established occupancy, on-site revenue from coin-operated laundry, and in-place utility billing supports straightforward operating management.
Key Highlights
- Fully leased 8‑plex built in 1973
- Coin‑operated laundry on‑site for additional income
- Through‑the‑wall A/C units throughout
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
$28,439
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
4.06%
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%
$568,780
$568.8K
Cap Rate 7%
$406,271
$406.3K
Cap Rate 9%
$315,989
$316.0K
Market Conditions
NOI Build-Up for 3,552 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
$57.5K $16.20/SF
− Vacancy
−$5.8K −$1.64/SF
EGI
$51.7K $14.56/SF
− OpEx
−$23.3K −$6.55/SF
NOI
$28.4K $8.01/SF
Area
Sioux Falls, SD
Vacancy
10.14%
Lease Rate
$16.20 /SF/Yr
Expense Ratio
45.00%
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%
$568,780
Cap Rate 7%
$406,271
Cap Rate 9%
$315,989
Alternative Uses
Best Use
Apartment 5plus
$406.3K
$355.5K – $474.0K
NOI $28,439 @ 7.0% cap · market cap 4.06%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$964.5K
$844.0K – $1.13M
NOI $67,516 @ 7.0% cap · market cap 9.65%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
8
Residential units
Location Intelligence
Trade Area within ½ mile
1,110
Businesses Nearby
Explore this area
Business Placement
Demographics for 57105, SD
22,635
Population
10,550
Households
2.1
Avg Household Size
36
Median Age
44%
College-Educated
97%
High-School Grad
7.5 sq mi
ZIP Area
3,018
Density / Sq Mi
$74,066
Median Household Income
$43,271
Median Earnings
$956
Median Rent
$247,900
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Fully leased 8-plex with coin-operated laundry, detached garages, through-the-wall A/C, boiler heat, and ample on-site parking.
Where is this apartment building located?
The property is located at 3505 S Hawthorne Ave Sioux Falls, SD.
What is the asking price?
The asking price for this property is $700,000.
What are key features of this property?
This property features: Fully leased 8‑plex built in 1973; Coin‑operated laundry on‑site for additional income; Through‑the‑wall A/C units throughout
