Northgate Plaza

Tenant

Kmart / Family Dollar

Location

Rapid City, SD

Price

$4,497,368

CAP Rate

10.05%

NOI

$451,961

Lease Term

Varies

Occupancy

74.03%

Building Size

173,678 sg ft

Property Type

Multi-Tenant

Year Built

1992

Lot Size

16.58 acres

Status

Closed

Property Contacts:

Karly Iacono

Associate Director

(201) 742-6119 | Email

  • Northgate Plaza – 173,678 Square Foot Retail Community Center
  • 74% Occupied – Anchored by Kmart & Family Dollar
  • Family Dollar Recently Exercised 1st Option
  • Excellent Demographics – 77,000 People within 5 Miles
  • Surrounded by National Retailers
  • Great Upside Opportunity
  • Facade Improvement in 2007 & Parking Lot Redone in 2011

Marcus & Millichap is pleased to exclusively present for sale Northgate Plaza, a 173,678 square foot retail community center in Rapid City, SD.  The center is approximately 74% occupied, anchored by Kmart & Family Dollar.  Other tenants include Zhu Li Zhu Chinese Restaurant, and Black Hills Pawn Shop.  There is also a pad site currently occupied by Hardee’s which will be vacated 1/1/2018 as the tenant moves across the street in an effort to own their own real estate. Many QSR tenants have already expressed interest in the pad site and their NOI will represent a significant boost to the return on the deal.

The property was built in 1967 and the lot size is approximately 16.58 Acres. In 1996, a new roof was installed and Kmart was completely renovated.  In 2007 there was a new façade improvement for all in-line tenants and in 2011 the parking lot was redone. There is great upside potential in leasing the remaining 26% of the property and increasing the rent of the current tenants to market.  This is a perfect opportunity to purchase a historical shopping center in the heart of Rapid City just over a mile from Main Street Square.

The property is located on North Street, a major retail corridor in Rapid City.  It is surrounded by various national tenants including Taco Bell, KFC, Wendy’s, McDonalds’s, Popeyes, AAMCO, and Auto Zone. It is also 2.5 Miles away from Rushmore Mall which features over 116 stores. Rapid City is the second most popular metropolitan city of South Dakota after Sioux Falls and also attracts millions of tourist due to the proximity to Mount Rushmore.