Building Details

Year Renovated 2024

Listing Agency: RE/MAX RESULTS b***@remax.net Show Phone

Listed By: BART MILLER · License #13116 Show Phone

Source: Exprealty

Added: May 29 Changed: Jul 10 Last Checked: Aug 19 at 2:29PM

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Investment Insights

Based on property information with market context.

This turnkey restaurant and bar was fully remodeled in 2024, including a 24x72 addition and a complete interior and exterior refresh. The property includes brand-new heating and air conditioning units installed in 2024, supporting comfortable year-round operations. The commercial kitchen is described as clean and fully equipped, and it is maintained in pristine condition.

The concept includes an outdoor patio measuring 12x60, with seating and a gas fire pit designed for guest dining and events. For on-site entertainment, there is a rear game room featuring darts, shuffleboard, and a golf simulator, supporting a lively atmosphere for groups and parties.

With the restaurant and bar presented as move-in ready, this property is well suited for an operator seeking an already built and equipped food and beverage environment. The combination of indoor entertainment space, a dedicated patio area, and a 2024 remodel—with newer HVAC—helps reduce immediate capital demands for day-to-day functionality. The opportunity is offered for sale at 415 S A Ave, New Underwood, SD.

Key Highlights

• Restaurant and bar fully remodeled in 2024 with a 24x72 addition
• Brand‑new heating and air conditioning units installed in 2024
• Commercial kitchen is fully equipped and maintained in pristine condition

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

$55,582

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

5.05%

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%

$1,111,640 $1.1M

Cap Rate 7%

$794,029 $794.0K

Cap Rate 9%

$617,578 $617.6K

Market Conditions

NOI Build-Up for 4,380 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

$78.8K $18.00/SF

− Vacancy

−$4.7K −$1.08/SF

EGI

$74.1K $16.92/SF

− OpEx

−$18.5K −$4.23/SF

NOI

$55.6K $12.69/SF

Area

Pennington County, SD

Vacancy

6.00%

Lease Rate

$18.00 /SF/Yr

Expense Ratio

25.00%

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%

$1,111,640

Cap Rate 7%

$794,029

Cap Rate 9%

$617,578

Alternative Uses

Best Use

Specialty Retail

$794.0K

$694.8K – $926.4K (±1% cap)

NOI $55,582 @ 7.0% cap · market cap 5.05%

Second Best

—

—

no second resolved use

Theoretical Best

—

—

same as Best Use

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Conventional restaurants

Suggested Use

Top Pick Plumbing Service Kitchen & Bath Showroom Hair Salon Nail Salon Pet Store Spa & Massage Center

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

Turnkey business

Opportunity

Location Intelligence

Trade Area within ½ mile

49

Businesses Nearby

455

Monthly Visits Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 100%

First Interstate Bank Shops & Services

455 visits/mo 0.0 miles

Demographics for 57761, SD

1,183

Population

466

Households

2.5

Avg Household Size

41

Median Age

28%

College-Educated

96%

High-School Grad

441.1 sq mi

ZIP Area

3

Density / Sq Mi

$101,042

Median Household Income

$47,958

Median Earnings

$871

Median Rent

$263,800

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

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

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Frequently Asked Questions

What type of property is this?

Conventional restaurant - Turnkey restaurant and bar fully remodeled in 2024, featuring a commercial kitchen, outdoor patio, and entertainment-ready game room.

Where is this conventional restaurant located?

The property is located at 415 S A Ave New Underwood, SD.

What is the asking price?

The asking price for this property is $1,100,000.

What are key features of this property?

This property features: Restaurant and bar fully remodeled in 2024 with a 24x72 addition; Brand‑new heating and air conditioning units installed in 2024; Commercial kitchen is fully equipped and maintained in pristine condition