9-Unit Apartment Building with
For Sale
$780,000
703 S Dakota Ave, Sioux Falls, SD 57104
Eight two-bedroom units and one one-bedroom unit create a varied residential rental mix.
Property Size5,248 SF
Price / SF$148.63
Days on Market39
Property Features for 703 S Dakota Ave
General Information
Standard status
Active
Size
5,248 SF
Property subtype
Multi-Family
Units
Unit Mix
8 x 2BR/1BA, 1 x 1BR/1BA
Multifamily Units
9
Amenities
coin-operated laundry
window air conditioning
Building Details
Year Built
1977
Buildings
1
Listing Agency:
Keller Williams Realty Sioux Falls
(605) 275-0555
Listed By:
Amber Ellingsen
Source:
Siouxfallsareahomesearch
Added: Jul 25
Changed: Aug 30
Last Checked: Aug 31 at 5:49PM
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 Keller Williams Realty Sioux Falls
Investment Insights
Based on property information with market context.
This 9-unit apartment property contains eight 2-bedroom, 1-bath residences and one 1-bedroom, 1-bath residence within 5,248 square feet. Individual units include dining areas adjoining the kitchens, large windows, substantial closet and storage space, and window air conditioning. Several apartments have been remodeled, while property improvements include new siding, security doors, and cement work.
Residents have access to coin-operated laundry in the lower level, a 7-stall detached garage, and off-street parking. Built in 1977, the property is located at 703 S Dakota Ave in Sioux Falls, near downtown and close to shopping, dining, entertainment, and schools.
Residents have access to coin-operated laundry in the lower level, a 7-stall detached garage, and off-street parking. Built in 1977, the property is located at 703 S Dakota Ave in Sioux Falls, near downtown and close to shopping, dining, entertainment, and schools.
Key Highlights
- 9 units with eight 2‑bedroom, 1‑bath apartments and one 1‑bedroom, 1‑bath apartment
- 5,248 square feet; built in 1977
- Several remodeled apartments plus new siding, security doors, and cement
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
$42,018
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
5.39%
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%
$840,360
$840.4K
Cap Rate 7%
$600,257
$600.3K
Cap Rate 9%
$466,867
$466.9K
Market Conditions
NOI Build-Up for 5,248 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
$85.0K $16.20/SF
− Vacancy
−$8.6K −$1.64/SF
EGI
$76.4K $14.56/SF
− OpEx
−$34.4K −$6.55/SF
NOI
$42.0K $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%
$840,360
Cap Rate 7%
$600,257
Cap Rate 9%
$466,867
Alternative Uses
Best Use
Apartment 5plus
$600.3K
$525.2K – $700.3K
NOI $42,018 @ 7.0% cap · market cap 5.39%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.43M
$1.25M – $1.66M
NOI $99,754 @ 7.0% cap · market cap 12.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
9
Residential units
Location Intelligence
Trade Area within ½ mile
1,795
Businesses Nearby
Explore this area
Business Placement
Demographics for 57104, SD
26,998
Population
13,952
Households
1.9
Avg Household Size
37
Median Age
25%
College-Educated
90%
High-School Grad
30.4 sq mi
ZIP Area
888
Density / Sq Mi
$59,161
Median Household Income
$39,101
Median Earnings
$849
Median Rent
$183,700
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 - Eight two-bedroom units and one one-bedroom unit create a varied residential rental mix.
Where is this apartment building located?
The property is located at 703 S Dakota Ave Sioux Falls, SD.
What is the asking price?
The asking price for this property is $780,000.
What are key features of this property?
This property features: 9 units with eight 2‑bedroom, 1‑bath apartments and one 1‑bedroom, 1‑bath apartment; 5,248 square feet; built in 1977; Several remodeled apartments plus new siding, security doors, and cement
