27-Unit Apartment Building
For Sale
$2,700,000
3509 S Willow Ave, Sioux Falls, SD 57105
Multibuilding apartment portfolio with one- and two-bedroom residences, attached garages, and established occupancy.
Property Size13,494 SF
Price / SF$200.09
Days on Market251
Property Features for 3509 S Willow Ave
General Information
Standard status
Active
Size
13,494 SF
Property subtype
Multi-Family
Building Details
Year Built
1976
Listing Agency:
Gateway Real Estate Advisors
(712) 739-0830
Listed By:
Daniel Stillson · License #S73739000
Source:
Siouxfallsareahomesearch
Added: Dec 23, 2025
Changed: Aug 30
Last Checked: Aug 30 at 7:59PM
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 offering includes 27 apartment units in a multibuilding configuration, with a mix of one- and two-bedroom residences. The property measures 13,494 square feet, was built in 1976, and includes 24 garages. Occupancy is currently near 90% or higher.
The portfolio is located along South Willow Avenue in Sioux Falls, near the Western Mall corridor. The offering also includes parcel 3601 S Willow Ave, providing an additional component within the property package.
The portfolio is located along South Willow Avenue in Sioux Falls, near the Western Mall corridor. The offering also includes parcel 3601 S Willow Ave, providing an additional component within the property package.
Key Highlights
- 27‑unit multifamily portfolio with one- and two‑bedroom unit mix
- 13,494 square feet across a multibuilding property
- 24 garages included
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
Property Profile
Current Use
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Apartment building - Multibuilding apartment portfolio with one- and two-bedroom residences, attached garages, and established occupancy.
Where is this apartment building located?
The property is located at 3509 S Willow Ave 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 portfolio with one- and two‑bedroom unit mix; 13,494 square feet across a multibuilding property; 24 garages included
