Freestanding Restaurant with I-90
For Sale
Contact for pricing
665 E Disk Dr, Rapid City, SD 57701
Established branded restaurant on a 1.209-acre site with hotel adjacency and direct exposure to Interstate 90.
Property Size6,500 SF
Lot Size1.21 Acres
Price / SF$201.76
Days on Market115
Property Features for 665 E Disk Dr
General Information
Standard status
Active
Size
6,500 SF
Lot size
1.21 Acres
Property subtype
Retail
Lease Type
NNN
Investment Type
Net Lease
Net Operating Income
$91,799
Financials
Asking Price
$1,311,414
Cap Rate
7%
Site & Location
Traffic Count
23,815 vehicles/day
Highway Access
Yes
Road Access
Yes
Building Details
Year Built
2000
Buildings
1
Tenancy
Single
Listing Agency:
Bang Realty
(888) 737-2264
Listed By:
Brian Brockman · License #298998
Source:
Crexi
Added: May 8
Changed: Aug 29
Last Checked: May 9 at 10:29PM
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 Bang Realty
Investment Insights
Based on property information with market context.
The property is a 6,500-square-foot conventional restaurant on 1.209 acres, built in 2000 and operating as an Outback Steakhouse since November 2000. The offering includes fee-simple ownership and an in-place lease in its fourth and final option period through 11/30/2030. The restaurant is operated by Evergreen Restaurant Group LLC, a Bloomin’ Brands franchisee with approximately 35–40 units and an operating history of approximately 30 years across seven states.
Located at 665 E Disk Dr in Rapid City, the site sits directly off Interstate 90 along the Heartland Expressway, with approximately 23,815 VPD and direct interstate visibility. Four adjacent hotels—Hilton Garden Inn, Holiday Inn Express, Country Inn & Suites, and Staybridge Suites—surround the property. The broader trade area is anchored by Ellsworth Air Force Base and serves as an economic, healthcare, and tourism center for the Black Hills region.
Located at 665 E Disk Dr in Rapid City, the site sits directly off Interstate 90 along the Heartland Expressway, with approximately 23,815 VPD and direct interstate visibility. Four adjacent hotels—Hilton Garden Inn, Holiday Inn Express, Country Inn & Suites, and Staybridge Suites—surround the property. The broader trade area is anchored by Ellsworth Air Force Base and serves as an economic, healthcare, and tourism center for the Black Hills region.
Key Highlights
- 6,500 SF restaurant on 1.209 acres
- Outback Steakhouse operation established at the site since November 2000
- Fourth and final lease option period extends through 11/30/2030
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
$82,485
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
6.29%
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%
$1,649,700
$1.6M
Cap Rate 7%
$1,178,357
$1.2M
Cap Rate 9%
$916,500
$916.5K
Market Conditions
NOI Build-Up for 6,500 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
$117.0K $18.00/SF
− Vacancy
−$7.0K −$1.08/SF
EGI
$110.0K $16.92/SF
− OpEx
−$27.5K −$4.23/SF
NOI
$82.5K $12.69/SF
Area
Pennington County, SD
Vacancy
6.00%
Lease Rate
$18.00 /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%
$1,649,700
Cap Rate 7%
$1,178,357
Cap Rate 9%
$916,500
Alternative Uses
Best Use
Specialty Retail
$1.18M
$1.03M – $1.37M
NOI $82,485 @ 7.0% cap · market cap 6.29%
Second Best
Retail
$1.08M
$941.9K – $1.26M
NOI $75,348 @ 7.0% cap · market cap 5.75%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
23,815 VPD
Traffic count
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
420
Businesses Nearby
453k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Superstores 56%
Shops & Services 20%
Apparel 11%
Dining 6%
Walmart
Superstores
135,036 visits/mo
0.5 miles
Sam's Club
Superstores
120,126 visits/mo
0.4 miles
Fleet Farm
Apparel
50,279 visits/mo
0.3 miles
Hobby Lobby
Shops & Services
50,145 visits/mo
0.3 miles
Sam's Club Gas Station
Shops & Services
22,441 visits/mo
0.4 miles
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
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Established branded restaurant on a 1.209-acre site with hotel adjacency and direct exposure to Interstate 90.
Where is this conventional restaurant located?
The property is located at 665 E Disk Dr Rapid City, SD.
What is the asking price?
The asking price for this property is $1,311,414.
What are key features of this property?
This property features: 6,500 SF restaurant on 1.209 acres; Outback Steakhouse operation established at the site since November 2000; Fourth and final lease option period extends through 11/30/2030
