Spearfish Estates 2975 Aspen Dr 61 Unit Apartment Building For Sale Spearfish, SD 57783

Executive Summary
Spearfish Estates is a premier apartment complex completed in two phases over the last ten years. The first phase consists of 36 units, ranging from 1 to 3 bedrooms, which have maintained almost 100% occupancy over the last five years. Over the past two years, we have successfully increased the rent roll year over year by over 8%, while retaining 50%+ of the original tenants during that period. Approximately 50% of tenants have stayed for three or more years, averaging six turnovers a year.

Phase II includes four new buildings with a total of 25 townhome-style units, featuring three levels, 2 bedrooms, 1.5 bathrooms, and a one-car garage. The first building was preleased at $1,800 and put into service in July 2023, with the current market rent now at $2,100, excluding pet rent. These units are independently serviced by a forced air system, with tenants paying all utilities except trash and water.

The total complex is fully occupied, reflecting strong demand and a robust rental market.

Financial Summary
- Monthly gross rent: $98k+ per month ($100,000 target realized by the end of 2025)
- Annual gross rent: $1.17 million
- Projected yearly growth of total rent roll: 5% over the next five years
- Projected monthly revenue by 2029: $121,000
- Projected annual revenue by 2029: $1.45 million

Occupancy Analysis
- Current occupancy rate: 100% minus turnover
- Historical occupancy rates for both phases have been consistently high, demonstrating stable tenant retention and demand.
- High retention rates: 50% of original tenants (since 2021) in Phase I and II.

Growth and Development in the Area
Spearfish is experiencing significant growth, with various new developments and infrastructure projects enhancing the town's appeal. This growth, combined with a lack of homes and rentals, positively impacts the rental market and property values, making Spearfish Estates a strategic investment choice.

For more details on the second phase, including advertising materials, pictures, layout, design, and market rent, please visit: Spearfish Estates Phase II

For the first phase, detailed information can be found here: Spearfish Estates Phase I