CAP Rate: 9.14%
Lease Type: Double Net
Gross Leasable Area: 4,832 SF
Year Built/Renovated: 1950/1995
- Double-Net Investment with Long History as Automotive Repair Site
- Fast-Growing Sioux Falls Market with No Corporate State Income Tax
- Attractive Six-Bay Building with Recent Renovations
The Diffie Retail Team at Marcus & Millichap is pleased to present this six-bay automotive repair facility in Sioux Falls, South Dakota. At a 9.15 percent cap, this double-net investment affords investors the opportunity to acquire an asset in a fast-growing market with potential upside. This site has a long history as an automotive repair location. The current tenant purchased the location from previous operators and maintains a transmission and lube facility at the site. The building is in fantastic shape, as the current owners have recently renovated the roof, putting more than $12,000 back into the building.
Sioux Falls is the most populated city in the state of South Dakota with a population of close to 200,000. The city has experienced explosive population growth over the past three decades, almost doubling in size since 1990. In large part due to South Dakota’s lack of corporate income tax, many large corporations have moved to the area in the past few years. This growth was highlighted by the announcement in 2020 that Amazon plans to build a 640,000 square-foot distribution facility in Sioux Falls, slated to open in 2022.