Mixed-Use Property with
New
For Sale
$2,490,000
5955 Mount Rushmore Rd, Rapid City, SD 57701
Four established local tenants occupy the building, with additional office, warehouse, and customer-facing space available.
Property Size12,328 SF
Price / SF$201.98
Days on Market7
Property Features for 5955 Mount Rushmore Rd
General Information
Standard status
Active
Size
12,328 SF
Site & Location
Drive-Thru
Yes
Highway Access
Yes
Road Access
Yes
Building Details
Tenancy
Multi
Listing Agency:
RE/MAX Advantage
(605) 343-7653
Listed By:
Randy Olivier · License #1786
(605) 430-6246
Source:
Exprealty
Added: Sep 4
Changed: Sep 10
Last Checked: Sep 10 at 3:03PM
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 RE/MAX Advantage
Investment Insights
Based on property information with market context.
This 12,328-square-foot mixed-use commercial property includes four operating tenant spaces and two additional areas that are currently available. Existing occupants are Ponderosa Smiles, Good Dominion Tattoos, Karate for Kids, and K&O Property Management. The front corner space measures 2,380 square feet and includes drive-through infrastructure, while the rear area combines 3,028 square feet of office and warehouse space.
The property is located at 5955 Mount Rushmore Road in Rapid City along a commercial corridor connecting Interstate 90, the city, and the Black Hills. Nearby development includes Sanford Health’s planned medical campus north of the property and ongoing residential, medical, and commercial activity near Catron Boulevard and U.S. 16. The available areas provide distinct formats for customer-facing, office, storage, trade, distribution, and service operations.
The property is located at 5955 Mount Rushmore Road in Rapid City along a commercial corridor connecting Interstate 90, the city, and the Black Hills. Nearby development includes Sanford Health’s planned medical campus north of the property and ongoing residential, medical, and commercial activity near Catron Boulevard and U.S. 16. The available areas provide distinct formats for customer-facing, office, storage, trade, distribution, and service operations.
Key Highlights
- 12,328‑square‑foot mixed‑use commercial property
- Four existing tenants: Ponderosa Smiles, Good Dominion Tattoos, Karate for Kids, and K&O Property Management
- 2,380‑square‑foot front corner space with drive‑through infrastructure
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
$142,906
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
5.74%
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%
$2,858,120
$2.9M
Cap Rate 7%
$2,041,514
$2.0M
Cap Rate 9%
$1,587,844
$1.6M
Market Conditions
NOI Build-Up for 12,328 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
$221.9K $18.00/SF
− Vacancy
−$17.8K −$1.44/SF
EGI
$204.2K $16.56/SF
− OpEx
−$61.2K −$4.97/SF
NOI
$142.9K $11.59/SF
Area
Pennington County, SD
Vacancy
8.00%
Lease Rate
$18.00 /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%
$2,858,120
Cap Rate 7%
$2,041,514
Cap Rate 9%
$1,587,844
Alternative Uses
Best Use
Retail
$2.04M
$1.79M – $2.38M
NOI $142,906 @ 7.0% cap · market cap 5.74%
Second Best
Mixed Use
$1.50M
$1.31M – $1.75M
NOI $105,173 @ 7.0% cap · market cap 4.22%
Theoretical Best
Specialty Retail
$2.23M
$1.96M – $2.61M
NOI $156,442 @ 7.0% cap · market cap 6.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
100
Businesses Nearby
Explore this area
Business Placement
Demographics for 57701, SD
46,258
Population
20,526
Households
2.3
Avg Household Size
36
Median Age
28%
College-Educated
93%
High-School Grad
52.2 sq mi
ZIP Area
886
Density / Sq Mi
$52,733
Median Household Income
$34,971
Median Earnings
$892
Median Rent
$229,900
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Industrial in Midwest region
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Four established local tenants occupy the building, with additional office, warehouse, and customer-facing space available.
Where is this mixed-use property located?
The property is located at 5955 Mount Rushmore Rd Rapid City, SD.
What is the asking price?
The asking price for this property is $2,490,000.
What are key features of this property?
This property features: 12,328‑square‑foot mixed‑use commercial property; Four existing tenants: Ponderosa Smiles, Good Dominion Tattoos, Karate for Kids, and K&O Property Management; 2,380‑square‑foot front corner space with drive‑through infrastructure
