Building Details

Year built 1999

Listing Agency: Dakota Plains Real Estate & Development Show Phone

Listed By: Robin (Rob) K Johnson · License #15391 Show Phone

Added: Aug 19 Changed: Sep 23 Last Checked: Sep 28 at 11:06AM

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MLS# 26-536

Copyright © 2026 Aberdeen Board of Realtors. 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 manufacturing property includes a 15,360-square-foot steel-framed facility on 6.5 acres. The building supports welding and repair work, steel and aluminum sales, and trailer sales and service. Interior areas include reception, a parts room, showroom, offices across multiple levels, a meeting room, and a lunchroom. Building infrastructure includes floor heat, ventilation, an overhead crane, and 7 overhead doors.

The property is located along E US Highway 12 at Bath Corner, approximately 6 miles east of Aberdeen, South Dakota. The commercially zoned site includes a lighted, well-graveled display area with drainage improvements. The business has operated for 60 years as a third-generation, family-owned regional manufacturing and repair operation.

Key Highlights

• 15,360‑square‑foot facility situated on 6.5 acres
• Steel‑framed building with 7 overhead doors
• Overhead crane, floor heat, and ventilation

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

$118,610

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

3.22%

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%

$2,372,200 $2.4M

Cap Rate 7%

$1,694,429 $1.7M

Cap Rate 9%

$1,317,889 $1.3M

Market Conditions

NOI Build-Up for 15,360 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

$202.8K $13.20/SF

− Vacancy

−$20.3K −$1.32/SF

EGI

$182.5K $11.88/SF

− OpEx

−$63.9K −$4.16/SF

NOI

$118.6K $7.72/SF

Area

Brown County, SD

Vacancy

10.00%

Lease Rate

$13.20 /SF/Yr

Expense Ratio

35.00%

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%

$2,372,200

Cap Rate 7%

$1,694,429

Cap Rate 9%

$1,317,889

Alternative Uses

Best Use

Flex RnD

$1.69M

$1.48M – $1.98M (±1% cap)

NOI $118,610 @ 7.0% cap · market cap 3.22%

Second Best

Retail

$1.69M

$1.48M – $1.98M (±1% cap)

NOI $118,560 @ 7.0% cap · market cap 3.22%

Theoretical Best

Healthcare Medical

$2.68M

$2.35M – $3.13M (±1% cap)

NOI $187,730 @ 7.0% cap · market cap 5.09%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Specialty Trailer Car Dealership

Suggested Use

Top Pick Auto Parts Store Storage Facility Butcher Auto Repair Shop Grocery & Convenience Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

7

Drive-in doors

Turnkey business

Opportunity

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

11

Businesses Nearby

Explore this area Business Placement

Demographics for 57427, SD

610

Population

248

Households

2.5

Avg Household Size

43

Median Age

19%

College-Educated

89%

High-School Grad

61.2 sq mi

ZIP Area

10

Density / Sq Mi

$82,308

Median Household Income

$50,750

Median Earnings

$384,100

Median Home Value

Market

Vacancy Rate% for Industrial in Midwest region

4.4% 2019

4.9% 2020

3.6% 2021

3.1% 2022

4.6% 2023

5% 2024

4.9% 2025

Questions? Ask Rey

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What type of property is this? Where is this manufacturing properties located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Manufacturing property - Operational manufacturing and repair facility with trailer sales, service, showroom, offices, and a commercially zoned setting.

Where is this manufacturing property located?

The property is located at 39505 133rd Street Bath, SD.

What is the asking price?

The asking price for this property is $3,685,000.

What are key features of this property?

This property features: 15,360‑square‑foot facility situated on 6.5 acres; Steel‑framed building with 7 overhead doors; Overhead crane, floor heat, and ventilation