27-Unit Apartment Building with
For Sale
$2,700,000
3509 E Willow Leaf St, Sioux Falls, SD 57110
Multifamily property offering one- and two-bedroom residences with substantial enclosed garage capacity.
Property Size13,494 SF
Price / SF$200.09
Days on Market144
Property Features for 3509 E Willow Leaf St
General Information
Standard status
Active
Size
13,494 SF
Total Parking Spaces
24
Property subtype
Residential Income
Additional Details
Multifamily Units
27
Listing Agency:
Gateway Real Estate Advisors
(712) 739-0830
Listed By:
Daniel Stillson · License #S73739000
(712) 739-0830
Source:
Exprealty
Added: Apr 10
Changed: Aug 29
Last Checked: Aug 30 at 7:12PM
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 Gateway Real Estate Advisors
Investment Insights
Based on property information with market context.
This multifamily property comprises 27 apartment units in a one- and two-bedroom mix, along with 24 garages. The offering also includes the parcel at 3601 S Willow Ave, creating a multi-building residential asset along South Willow Avenue.
The property is directly proximate to the Western Mall corridor and is currently near 90%+ occupied. The combination of varied unit layouts, enclosed garage spaces, and multiple buildings provides a clearly defined apartment investment profile.
The property is directly proximate to the Western Mall corridor and is currently near 90%+ occupied. The combination of varied unit layouts, enclosed garage spaces, and multiple buildings provides a clearly defined apartment investment profile.
Key Highlights
- 27‑unit multifamily property with 1- and 2‑bedroom units
- 24 garages included
- Includes parcel 3601 S Willow Ave
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
$108,040
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
4.00%
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%
$2,160,800
$2.2M
Cap Rate 7%
$1,543,429
$1.5M
Cap Rate 9%
$1,200,444
$1.2M
Market Conditions
NOI Build-Up for 13,494 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
$218.6K $16.20/SF
− Vacancy
−$22.2K −$1.64/SF
EGI
$196.4K $14.56/SF
− OpEx
−$88.4K −$6.55/SF
NOI
$108.0K $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%
$2,160,800
Cap Rate 7%
$1,543,429
Cap Rate 9%
$1,200,444
Alternative Uses
Best Use
Apartment 5plus
$1.54M
$1.35M – $1.80M
NOI $108,040 @ 7.0% cap · market cap 4.00%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.66M
$3.21M – $4.27M
NOI $256,494 @ 7.0% cap · market cap 9.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
27
Residential units
Location Intelligence
Trade Area within ½ mile
41
Businesses Nearby
Explore this area
Business Placement
Demographics for 57110, SD
22,013
Population
9,178
Households
2.4
Avg Household Size
35
Median Age
43%
College-Educated
92%
High-School Grad
20.9 sq mi
ZIP Area
1,053
Density / Sq Mi
$87,114
Median Household Income
$52,202
Median Earnings
$1,018
Median Rent
$365,600
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 - Multifamily property offering one- and two-bedroom residences with substantial enclosed garage capacity.
Where is this apartment building located?
The property is located at 3509 E Willow Leaf St Sioux Falls, SD.
What is the asking price?
The asking price for this property is $2,700,000.
What are key features of this property?
This property features: 27‑unit multifamily property with 1- and 2‑bedroom units; 24 garages included; Includes parcel 3601 S Willow Ave
