Garden-Style Apartment
For Sale
Contact for pricing
Pending
505 N Cleveland Ave, Sioux Falls, SD 57103
Garden-style multifamily community with 61 studio, one-, and two-bedroom units across multiple three-story buildings.
Property Size57,014 SF
Lot Size3.68 Acres
Days on Market220
Property Features for 505 N Cleveland Ave
General Information
Standard status
Pending
Size
57,014 SF
Class
B
Lot size
3.68 Acres
Property subtype
Multifamily
Zoning
RA-2
Occupancy
93%
Additional Details
Business Included
Yes
Multifamily Units
61
Building Details
Year Built
1976
Buildings
5
Stories
3
Units
61
Tenancy
Multi
Listing Agency:
605 Real Estate
Listed By:
Brad Stearns · License #15071
Source:
Crexi
Added: Jan 30
Changed: Aug 8
Last Checked: Aug 6 at 1:33PM
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 605 Real Estate
Investment Insights
Based on property information with market context.
Brookshire Apartments is a well-established, garden-style multifamily community offering 61 studio, one-, and two-bedroom units. The property includes five three-story residential buildings and seven detached garage buildings, built in 1976 with durable construction typical of mid-century garden-style apartments. Parking is provided through a combination of surface parking and detached garage stalls.
The community is located at 505 N Cleveland Ave in Sioux Falls, South Dakota, in a convenient north-central area near major roadways and East 6th Street, supporting easy access to surrounding services and employment.
Brookshire is currently operating at 93.4% occupancy as of December 1, 2025, and is described as producing in-place cash flow. Zoning RA-2 supports continued multifamily use without restriction. The property may be acquired individually or as part of a larger 716-unit multifamily portfolio.
The community is located at 505 N Cleveland Ave in Sioux Falls, South Dakota, in a convenient north-central area near major roadways and East 6th Street, supporting easy access to surrounding services and employment.
Brookshire is currently operating at 93.4% occupancy as of December 1, 2025, and is described as producing in-place cash flow. Zoning RA-2 supports continued multifamily use without restriction. The property may be acquired individually or as part of a larger 716-unit multifamily portfolio.
Key Highlights
- 61‑unit garden‑style multifamily with studios, 1‑bedroom, and 2‑bedroom units across five three‑story residential buildings
- Built in 1976 and set on approx. 3.68 acres in Sioux Falls, SD, at 609 N Cleveland Ave
- Includes seven detached garage buildings plus surface parking, offering additional parking options for residents and guests
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
$456,484
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
6.97%
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%
$9,129,680
$9.1M
Cap Rate 7%
$6,521,200
$6.5M
Cap Rate 9%
$5,072,044
$5.1M
Market Conditions
NOI Build-Up for 57,014 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
$923.6K $16.20/SF
− Vacancy
−$93.7K −$1.64/SF
EGI
$830.0K $14.56/SF
− OpEx
−$373.5K −$6.55/SF
NOI
$456.5K $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%
$9,129,680
Cap Rate 7%
$6,521,200
Cap Rate 9%
$5,072,044
Alternative Uses
Best Use
Apartment 5plus
$6.52M
$5.71M – $7.61M
NOI $456,484 @ 7.0% cap · market cap 6.97%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$15.48M
$13.55M – $18.06M
NOI $1,083,722 @ 7.0% cap · market cap 16.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
61
Residential units
Multi-tenant
Tenancy
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
365
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 - Garden-style multifamily community with 61 studio, one-, and two-bedroom units across multiple three-story buildings.
Where is this apartment building located?
The property is located at 505 N Cleveland Ave Sioux Falls, SD.
What is the asking price?
The asking price for this property is $6,550,000.
What are key features of this property?
This property features: 61‑unit garden‑style multifamily with studios, 1‑bedroom, and 2‑bedroom units across five three‑story residential buildings; Built in 1976 and set on approx. 3.68 acres in Sioux Falls, SD, at 609 N Cleveland Ave; Includes seven detached garage buildings plus surface parking, offering additional parking options for residents and guests
