1845 Haines Ave

Description

NNN Investment Opportunity – Rapid City represents a core regional market for net-lease investment, serving as the commercial hub for the Black Hills and a multi-state trade area encompassing western South Dakota, northeastern Wyoming, and portions of Nebraska and Montana. This depth of regional draw supports long-term tenant performance and durable cash flow. The subject property is strategically positioned on Haines Avenue, immediately south of Interstate 90, benefiting from average daily traffic counts exceeding 35,000 vehicles. This prime location offers exceptional visibility, ease of access, and sustained customer traffic—key drivers of tenant sales and lease longevity. Haines Avenue is a major north–south arterial that directly connects I-90 to downtown Rapid City and the city’s primary medical corridor. In 2024 and 2025, the property underwent extensive capital improvements, including a full interior remodel (including the office space in the 27,342 sf 2nd-floor mezz), acomplete parking lot refinish and restriping, new LED parking lot lighting, and fresh exterior paint. The Planet Fitness tenant alone invested more than $2.5 million into improvements within its approximately 30,000-square-foot space, further reinforcing its long-term commitment to the location. Each tenant (see addendum for details) has recently executed a new 12-year initial lease term with multiple 5-year renewal options, providing stable, predictable income under a true NNN structure. This NNN investment delivers a 7.50% Year One cap rate on base rent, with strong downside protection. Although the landlord advances capital improvement costs, the tenant reimburses these expenses over an amortized term, effectively mitigating long-term ownership exposure. This property is being offered as part of a four-property portfolio. Additional information on the remaining three properties is available in the attached Offering Memorandum. Listed by: Randy Olivier RE/MAX Advantage 605-430-6246