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Melissa Christianson

melissa.christianson@engelvoelkers.com +1(605) 863-3707

Listed byAndrea Ronning • Aspen+Pine Realty

$ 1,700,000

Est. payment -/mo

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Active

545 LINCOLN Custer, SD 57730

1 Bed

931 SqFt

UPDATED:

Key Details

Property Type Multi-Family

Sub Type Multiplex

Listing Status Active

Purchase Type For Sale

Square Footage 931 sqft

Price per Sqft $1,825

MLS Listing ID 181589

Bedrooms 1

HOA Y/N No

Year Built 1972

Lot Dimensions .70

Property Sub-Type Multiplex

Property Description

An opportunity to own one of Custer's established multifamily properties. Valley Hi Apartments offers 28 units, 14 studios at approx. 403sf and 14 one-bedrooms at approx. 528sf, in a walkable location close to downtown Custer and services. Built in 1972, the two-story, wood-framed, slab-on-grade buildings total approximately 17,480 square feet on 0.7 acre and feature low-maintenance metal siding. The property includes an on-site leasing office, two laundry rooms with owner-owned, coin-operated machines, and 26 on-site parking spaces, including 6 accessible spaces. Heat is hydronic hot water from two propane-fueled boilers in the first-floor mechanical room, served by a 1,000-gallon propane tank, with a common 108-gallon hot water system and a water softener. The property recently transitioned out of the HUD program, so the new owner is free to set rents and manage tenancy without HUD contract restrictions. Current all-inclusive rents are $889 for studios & $983 for one-bedrooms, with the owner paying utilities. Additional income comes from on-site laundry. Before the transition, the property historically ran at near-full occupancy with a waiting list. Key updates are already done. The flat roof received a new TPO membrane in 2022, the boiler circulation pumps were replaced in 2022, every unit has been converted from fuses to modern breaker panels, and new flooring has been installed in four units. Lease-up of the current vacancies, along with targeted unit updates, offers a clear path to stronger income. Because utilities are currently included in rent, separately metering unit electricity offers a new owner another opportunity to reduce operating expenses and increase net income. Offered at $1,700,000, approximately $60,700 per unit and $97 per sf. In-place cap rate approximately 6.4%; pro forma cap rate approximately 10.6% at stabalization.

Location

State SD

Area Custer

Zoning Unknown

Direction One (1) block east of US Highway 16/State Highway 385 (aka North 5th Street), on the north side of Lincoln Street (northeast corner of the intersection of Lincoln Street and Victory Lane)

Interior

Interior Features LR/DR Combo

Heating Hot Water

Cooling None

Window Features Window Coverings

Exterior

Parking Features Common

View Y/N Yes

Roof Type Rubber

Garage No

Building

Foundation Slab

Sewer Septic (at site)

Water Public

Level or Stories Two

Others

Security Features Security System,Smoke Detector(s)

Acceptable Financing Cash, New Loan

Listing Terms Cash, New Loan

NEARBY SCHOOLS & PROPERTIES

Melissa Christianson

Broker Associate License ID: 20945

+1(605) 863-3707

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