Restaurant Opportunity in Sioux
For Sale
Contact for pricing
5001 S Western Ave, Sioux Falls, SD 57108
Restaurant property for sale in a high-traffic shopping destination.
Property Size9,206 SF
Price / SF$353.03
Days on Market669
Property Features for 5001 S Western Ave
General Information
Standard status
Active
Size
9,206 SF
Class
A
Property subtype
Retail
Occupancy
100%
Lease Type
NNN
Investment Type
Stabilized
Building Details
Year Built
2005
Tenancy
Single
Listing Agency:
Lloyd Companies
Listed By:
Raquel Blount · License #SD 11811
(605) 275-4251
Source:
Crexi
Added: Nov 5, 2024
Changed: Sep 3
Last Checked: Aug 31 at 7:10PM
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 9,206 square foot property is located on the south side of Sioux Falls, within The Bridges at 57th, a shopping destination with over 833,000 annual visits. The location benefits from a combined traffic count of 40,600 vehicles per day at the intersection of 57th Street and Western Avenue, with direct access to I-229, which carries more than 51,000 vehicles per day. The surrounding area includes established retailers, professional services, and residential neighborhoods. The property is situated in an area with above-average disposable income. The property is available for sale or lease and offers an adaptable layout. Furniture, fixtures, and equipment may be negotiated separately. This property presents a premier restaurant opportunity.
Key Highlights
- Premier restaurant location in The Bridges at 57th shopping destination (833,000 annual visits).
- High traffic counts: 40,600 VPD at 57th & Western, I‑229 access with 51,000+ VPD.
- Adaptable 9,206 SF space available for sale or lease.
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
$122,624
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
3.77%
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%
$2,452,480
$2.5M
Cap Rate 7%
$1,751,771
$1.8M
Cap Rate 9%
$1,362,489
$1.4M
Market Conditions
NOI Build-Up for 9,206 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
$176.8K $19.20/SF
− Vacancy
−$13.3K −$1.44/SF
EGI
$163.5K $17.76/SF
− OpEx
−$40.9K −$4.44/SF
NOI
$122.6K $13.32/SF
Area
Sioux Falls, SD
Vacancy
7.50%
Lease Rate
$19.20 /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%
$2,452,480
Cap Rate 7%
$1,751,771
Cap Rate 9%
$1,362,489
Alternative Uses
Best Use
Specialty Retail
$1.75M
$1.53M – $2.04M
NOI $122,624 @ 7.0% cap · market cap 3.77%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.50M
$2.19M – $2.92M
NOI $174,988 @ 7.0% cap · market cap 5.38%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
766
Businesses Nearby
29k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 73%
Dining 27%
Circle K
Shops & Services
19,247 visits/mo
0.1 miles
Starbucks
Dining
7,955 visits/mo
0.1 miles
Chase Bank
Shops & Services
1,729 visits/mo
0.2 miles
Demographics for 57108, SD
31,953
Population
13,933
Households
2.3
Avg Household Size
36
Median Age
54%
College-Educated
97%
High-School Grad
30.4 sq mi
ZIP Area
1,051
Density / Sq Mi
$96,184
Median Household Income
$51,749
Median Earnings
$1,292
Median Rent
$401,300
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.
Similar Off Market Nearby
- Chef Ellen — 2210 W 69th St Unit 130, Sioux Falls, SD 57108
- Accent On Events — 4100 S Western Ave, Sioux Falls, SD 57105
Frequently Asked Questions
What type of property is this?
Restaurant - Restaurant property for sale in a high-traffic shopping destination.
Where is this restaurant located?
The property is located at 5001 S Western Ave Sioux Falls, SD.
What is the asking price?
The asking price for this property is $3,250,000.
What are key features of this property?
This property features: Premier restaurant location in The Bridges at 57th shopping destination (833,000 annual visits).; High traffic counts: 40,600 VPD at 57th & Western, I‑229 access with 51,000+ VPD.; Adaptable 9,206 SF space available for sale or lease.
