Sioux City Retail Investment
For Sale
Contact for pricing
4501 Southern Hills Dr, Sioux City, IA 51106
Value-add retail investment in established commercial corridor with upside potential.
Property Size106,795 SF
Price / SF$132.03
Days on Market179
Property Features for 4501 Southern Hills Dr
General Information
Standard status
Active
Size
106,795 SF
Property subtype
Retail, Land
Lease Type
NNN
Investment Type
Value Add
Net Operating Income
$568,859
Listing Agency:
NAI NP Dodge
(402) 618-5523
Listed By:
Amber Olson · License #NE 20080192
Source:
Crexi
Added: Feb 26
Changed: Aug 8
Last Checked: Aug 23 at 8:15AM
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 NAI NP Dodge
Investment Insights
Based on property information with market context.
Southern Square Shopping Center is a retail investment opportunity located in Sioux City's Southern Hills retail district. The property benefits from area co-tenancy, consumer traffic, and proximity to national retailers. The center has 8,827 square feet of available space. An investor has the opportunity to increase net operating income through lease-up, enhance center synergy by curating complementary tenants, improve asset value through stabilization, and potentially reposition or modernize the vacant space to attract higher-credit tenancy. The vacancies provide growth potential while maintaining in-place income from existing tenants. Southern Square offers visibility, accessibility, and flexibility. The property size is 106,795 square feet.
Key Highlights
- Opportunity to increase Net Operating Income (NOI) through lease‑up of 8,827 SF of available space.
- Located in an established commercial corridor within the Southern Hills retail district.
- Benefits from strong area co‑tenancy, consistent consumer traffic, and proximity to national anchors.
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
$1,059,560
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
7.51%
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%
$21,191,200
$21.2M
Cap Rate 7%
$15,136,571
$15.1M
Cap Rate 9%
$11,772,889
$11.8M
Market Conditions
NOI Build-Up for 106,795 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
$1.65M $15.48/SF
− Vacancy
−$139.5K −$1.31/SF
EGI
$1.51M $14.17/SF
− OpEx
−$454.1K −$4.25/SF
NOI
$1.06M $9.92/SF
Area
Woodbury County, IA
Vacancy
8.44%
Lease Rate
$15.48 /SF/Yr
Expense Ratio
30.00%
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%
$21,191,200
Cap Rate 7%
$15,136,571
Cap Rate 9%
$11,772,889
Alternative Uses
Best Use
Retail
$15.14M
$13.24M – $17.66M
NOI $1,059,560 @ 7.0% cap · market cap 7.51%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$16.05M
$14.04M – $18.72M
NOI $1,123,350 @ 7.0% cap · market cap 7.97%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
572
Businesses Nearby
61k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 59%
Dining 34%
Hotels & Casinos 8%
Casey's General Store
Shops & Services
35,793 visits/mo
0.0 miles
HuHot Mongolian Grill
Dining
20,426 visits/mo
0.1 miles
Comfort Inn
Hotels & Casinos
1,858 visits/mo
0.1 miles
Wingate
Hotels & Casinos
1,470 visits/mo
0.0 miles
Candlewood Suites
Hotels & Casinos
1,000 visits/mo
0.1 miles
Demographics for 51106, IA
28,655
Population
11,681
Households
2.5
Avg Household Size
35
Median Age
27%
College-Educated
93%
High-School Grad
33.5 sq mi
ZIP Area
855
Density / Sq Mi
$74,486
Median Household Income
$40,495
Median Earnings
$1,080
Median Rent
$186,300
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Shopping center - Value-add retail investment in established commercial corridor with upside potential.
Where is this shopping center located?
The property is located at 4501 Southern Hills Dr Sioux City, IA.
What is the asking price?
The asking price for this property is $14,100,000.
What are key features of this property?
This property features: Opportunity to increase Net Operating Income (NOI) through lease‑up of **8,827 SF of available space.**; Located in an established commercial corridor within the Southern Hills retail district.; Benefits from strong area co‑tenancy, consistent consumer traffic, and proximity to national anchors.
