Listing Agency: RE/MAX RESULTS M***@gmail.com Show Phone

Listed By: CHEYENNE MCGRIFF · License #17453 Show Phone

Source: Exprealty

Added: Aug 2, 2025 Changed: Aug 29 Last Checked: Aug 30 at 6:37PM

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Investment Insights

Based on property information with market context.

Red Rock Restaurant is a 10,756-square-foot restaurant property at 506 Glenn St in Wall, South Dakota. The building includes a main dining room, full bar with rail seating, four restrooms, two offices, additional upper-level storage, and a pet-friendly outdoor patio with covered seating. A heated bonus venue adds space for events, reunions, and other gatherings, while three garage doors support future expansion of that area.

The sale includes all furniture, fixtures, and equipment. Kitchen improvements include a pressure fryer, toasters, ventilated fire-suppression system, walk-in cooler, and connected walk-in freezer. The property sits along a main Wall thoroughfare, a short distance from downtown and Wall Drug Store, with access to Badlands National Park nearby.

Key Highlights

• 10,756‑square‑foot restaurant property at 506 Glenn St, Wall, SD 57790
• Sale includes all furniture, fixtures, and equipment
• Main dining area seats 46, with capacity stated at up to 55 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

$54,910

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

4.99%

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%

$1,098,200 $1.1M

Cap Rate 7%

$784,429 $784.4K

Cap Rate 9%

$610,111 $610.1K

Market Conditions

NOI Build-Up for 10,756 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

$83.9K $7.80/SF

− Vacancy

−$5.5K −$0.51/SF

EGI

$78.4K $7.29/SF

− OpEx

−$23.5K −$2.19/SF

NOI

$54.9K $5.11/SF

Area

Pennington County, SD

Vacancy

6.50%

Lease Rate

$7.80 /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%

$1,098,200

Cap Rate 7%

$784,429

Cap Rate 9%

$610,111

Alternative Uses

Best Use

Specialty Retail

$1.95M

$1.71M – $2.27M (±1% cap)

NOI $136,494 @ 7.0% cap · market cap 12.41%

Second Best

Industrial

$784.4K

$686.4K – $915.2K (±1% cap)

NOI $54,910 @ 7.0% cap · market cap 4.99%

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 HVAC Service (Bike/Boat/Book/etc) Store Auto Repair Shop Storage Facility Dental Office Big Box & Wholesale Store

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

185

Businesses Nearby

16k

Monthly Visits Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 84% Hotels & Casinos 11% Home Improvements & Furnishings 6%

Exxon Shops & Services

7,501 visits/mo 0.3 miles

Phillips 66 Shops & Services

2,727 visits/mo 0.2 miles

Conoco Shops & Services

2,501 visits/mo 0.3 miles

Wall Building Center & Construction Home Improvements & Furnishings

957 visits/mo 0.3 miles

First Interstate Bank Shops & Services

905 visits/mo 0.2 miles

Demographics for 57790, SD

1,056

Population

512

Households

2.1

Avg Household Size

42

Median Age

24%

College-Educated

98%

High-School Grad

735.9 sq mi

ZIP Area

1

Density / Sq Mi

$73,077

Median Household Income

$38,750

Median Earnings

$532

Median Rent

$187,500

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 - Established restaurant property with furnished dining, a full bar, equipped kitchen, patio seating, and a heated gathering space.

Where is this conventional restaurant located?

The property is located at 506 Glenn St Wall, 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: 10,756‑square‑foot restaurant property at 506 Glenn St, Wall, SD 57790; Sale includes all furniture, fixtures, and equipment; Main dining area seats 46, with capacity stated at up to 55 guests