Six-Unit Apartment
For Sale
$550,000
412 S Thompson Ave, Sioux Falls, SD 57103
Fully occupied property with a varied unit mix, on-site coin-operated laundry, and recent building updates.
Property Size5,376 SF
Price / SF$102.31
Days on Market10
Property Features for 412 S Thompson Ave
General Information
Standard status
Active
Size
5,376 SF
Property subtype
Residential Income
Occupancy
100%
Units
Unit Mix
5 x 2BR/1BA, 1 x 1BR/1BA
Multifamily Units
6
Additional Details
Highway Access
Yes
Amenities
coin-operated laundry
Listing Agency:
Keller Williams Realty Sioux Falls
(605) 360-6707
Listed By:
Amber Ellingsen
(605) 360-6707
Source:
Exprealty
Added: Aug 10
Changed: Aug 17
Last Checked: Aug 19 at 11:02AM
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 Keller Williams Realty Sioux Falls
Investment Insights
Based on property information with market context.
This 5,376-square-foot apartment building contains six residential units: five two-bedroom, one-bath apartments and one one-bedroom, one-bath apartment. The property is fully occupied and professionally managed, with common-area coin-operated laundry serving residents. Recent improvements include the boiler, HVAC system, and concrete work.
Located at 412 S Thompson Ave in Sioux Falls, the property offers access to downtown, shopping, dining, schools, and medical facilities. I-229 is also nearby, providing regional connectivity. The combination of an established unit mix, occupied apartments, on-site laundry, and completed updates defines the asset's current configuration.
Located at 412 S Thompson Ave in Sioux Falls, the property offers access to downtown, shopping, dining, schools, and medical facilities. I-229 is also nearby, providing regional connectivity. The combination of an established unit mix, occupied apartments, on-site laundry, and completed updates defines the asset's current configuration.
Key Highlights
- Six‑unit apartment building totaling 5,376 square feet
- Five 2‑bedroom, 1‑bath units and one 1‑bedroom, 1‑bath unit
- Fully occupied and professionally managed
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
$43,043
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
7.83%
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%
$860,860
$860.9K
Cap Rate 7%
$614,900
$614.9K
Cap Rate 9%
$478,256
$478.3K
Market Conditions
NOI Build-Up for 5,376 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
$87.1K $16.20/SF
− Vacancy
−$8.8K −$1.64/SF
EGI
$78.3K $14.56/SF
− OpEx
−$35.2K −$6.55/SF
NOI
$43.0K $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%
$860,860
Cap Rate 7%
$614,900
Cap Rate 9%
$478,256
Alternative Uses
Best Use
Apartment 5plus
$614.9K
$538.0K – $717.4K
NOI $43,043 @ 7.0% cap · market cap 7.83%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.46M
$1.28M – $1.70M
NOI $102,187 @ 7.0% cap · market cap 18.58%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
6
Residential units
100%
Occupancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
383
Businesses Nearby
Explore this area
Business Placement
Demographics for 57103, SD
36,069
Population
15,326
Households
2.4
Avg Household Size
37
Median Age
33%
College-Educated
91%
High-School Grad
9.5 sq mi
ZIP Area
3,797
Density / Sq Mi
$73,945
Median Household Income
$43,661
Median Earnings
$938
Median Rent
$244,800
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 occupied property with a varied unit mix, on-site coin-operated laundry, and recent building updates.
Where is this apartment building located?
The property is located at 412 S Thompson Ave Sioux Falls, SD.
What is the asking price?
The asking price for this property is $550,000.
What are key features of this property?
This property features: Six‑unit apartment building totaling 5,376 square feet; Five 2‑bedroom, 1‑bath units and one 1‑bedroom, 1‑bath unit; Fully occupied and professionally managed
