54-Unit Apartment
For Sale
$6,500,000
Pending
6206 S Avalon Ave, Sioux Falls, SD 57108
Well-maintained apartments offer varied floor plans, in-unit laundry, and central heating and cooling.
Property Size58,695 SF
Lot Size2.64 Acres
Days on Market82
Property Features for 6206 S Avalon Ave
General Information
Standard status
Pending
Size
58,695 SF
Lot size
2.64 Acres
Property subtype
Multi-Family
Additional Details
Multifamily Units
54
Amenities
9 foot ceilings
central heating and cooling
black appliances
in unit washer & dryer
in unit water heater
large windows
Building Details
Year Built
2009
Listing Agency:
The Experience Real Estate
Listed By:
Brent Sommervold
(605) 275-0555
Source:
Siouxfallsareahomesearch
Added: Jun 16
Changed: Sep 2
Last Checked: Sep 4 at 7:30AM
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 The Experience Real Estate
Investment Insights
Based on property information with market context.
Windflower Apartments is a 54-unit multifamily property completed in 2009, with a total building area of 58,695 square feet on 2.64 acres. The unit mix includes one-bedroom/one-bath, two-bedroom/one-bath, and two-bedroom/two-bath layouts. Apartment features include 9-foot ceilings, central heating and cooling, black appliances, in-unit washer and dryer, individual water heaters, and large windows. Property improvements have been completed within the last 4 years.
The property is located at 6206 S Avalon Ave in southern Sioux Falls, within a residential neighborhood and the Harrisburg School District. Reported average occupancy over the last 10 years is 98.14%.
The property is located at 6206 S Avalon Ave in southern Sioux Falls, within a residential neighborhood and the Harrisburg School District. Reported average occupancy over the last 10 years is 98.14%.
Key Highlights
- 54‑unit apartment complex built in 2009
- 58,695‑square‑foot building situated on 2.64 acres
- Unit mix includes 1 bed/1 bath, 2 bed/1 bath, and 2 bed/2 bath apartments
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
$469,943
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
7.23%
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%
$9,398,860
$9.4M
Cap Rate 7%
$6,713,471
$6.7M
Cap Rate 9%
$5,221,589
$5.2M
Market Conditions
NOI Build-Up for 58,695 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
$950.9K $16.20/SF
− Vacancy
−$96.4K −$1.64/SF
EGI
$854.4K $14.56/SF
− OpEx
−$384.5K −$6.55/SF
NOI
$469.9K $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%
$9,398,860
Cap Rate 7%
$6,713,471
Cap Rate 9%
$5,221,589
Alternative Uses
Best Use
Apartment 5plus
$6.71M
$5.87M – $7.83M
NOI $469,943 @ 7.0% cap · market cap 7.23%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$15.94M
$13.95M – $18.59M
NOI $1,115,675 @ 7.0% cap · market cap 17.16%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
54
Residential units
Location Intelligence
Trade Area within ½ mile
618
Businesses Nearby
Explore this area
Business Placement
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 Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Well-maintained apartments offer varied floor plans, in-unit laundry, and central heating and cooling.
Where is this apartment building located?
The property is located at 6206 S Avalon Ave Sioux Falls, SD.
What is the asking price?
The asking price for this property is $6,500,000.
What are key features of this property?
This property features: 54‑unit apartment complex built in 2009; 58,695‑square‑foot building situated on 2.64 acres; Unit mix includes 1 bed/1 bath, 2 bed/1 bath, and 2 bed/2 bath apartments
