Building Details

Year Built 2021

Units 1

Tenancy Single

Listing Agency: Lloyd Companies Show Phone

Listed By: Scott Blount · License #SD 11915

Source: Crexi

Added: Jun 4, 2025 Changed: Aug 10 Last Checked: Aug 10 at 2:46PM

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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 Lloyd Companies

Investment Insights

Based on property information with market context.

This is a turnkey warehouse and retail business opportunity located on the border between South Dakota and Iowa, 7 miles east of Sioux Falls, SD, and 1 mile south of Rowena, SD. The location allows service to the Tri-State area (South Dakota, Iowa, Minnesota). The property size is 6297 square feet.

Key Highlights

• Prime turnkey warehouse and retail business opportunity.
• Strategically located on the border between South Dakota and Iowa.
• Serves the Tri‑State area (South Dakota, Iowa, Minnesota).

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

$63,672

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

3.54%

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%

$1,273,440 $1.3M

Cap Rate 7%

$909,600 $909.6K

Cap Rate 9%

$707,467 $707.5K

Market Conditions

NOI Build-Up for 6,297 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

$94.5K $15.00/SF

− Vacancy

−$3.5K −$0.56/SF

EGI

$91.0K $14.45/SF

− OpEx

−$27.3K −$4.33/SF

NOI

$63.7K $10.11/SF

Area

Minnehaha County, SD

Vacancy

3.70%

Lease Rate

$15.00 /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%

$1,273,440

Cap Rate 7%

$909,600

Cap Rate 9%

$707,467

Alternative Uses

Best Use

Retail

$909.6K

$795.9K – $1.06M (±1% cap)

NOI $63,672 @ 7.0% cap · market cap 3.54%

Second Best

Warehouse

$790.7K

$691.9K – $922.5K (±1% cap)

NOI $55,350 @ 7.0% cap · market cap 3.08%

Theoretical Best

Office A

$1.70M

$1.49M – $1.98M (±1% cap)

NOI $118,823 @ 7.0% cap · market cap 6.60%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Borderline Butchering Take-out & Catering

Suggested Use

Top Pick Butcher

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

Location Intelligence

Trade Area within ½ mile

6

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 57005, SD

12,619

Population

4,693

Households

2.7

Avg Household Size

36

Median Age

41%

College-Educated

97%

High-School Grad

48.9 sq mi

ZIP Area

258

Density / Sq Mi

$108,689

Median Household Income

$53,429

Median Earnings

$985

Median Rent

$322,600

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

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Frequently Asked Questions

What type of property is this?

Warehouse - Prime warehouse and retail business serving the Tri-State area.

Where is this warehouse located?

The property is located at 48278 268th St Brandon, SD.

What is the asking price?

The asking price for this property is $1,800,000.

What are key features of this property?

This property features: Prime turnkey warehouse and retail business opportunity.; Strategically located on the border between South Dakota and Iowa.; Serves the Tri‑State area (South Dakota, Iowa, Minnesota).