Listed by NAI Sioux Falls
$7,300,000
Hazel Heights Apartments
Details
Property Type Multifamily
Sub Type Apartment Building, High-Rise
Square Footage 60,749
Units 66
Occupancy 100%
Class A
Year Built 2008
Acreage 2.760
Stabilized Asset with Rent upside in a college town
Marketing description
NAI Sioux Falls is pleased to present the opportunity to acquire Hazel Heights Apartments in Vermillion, SD. This 66-unit multi-family portfolio offers a strong mix of 1, 2, and 3-bedroom apartments, strategically located near the University of South Dakota, downtown Vermillion, and major transportation routes. The unit mix includes 1 three-bedroom unit averaging $1,245 per month, 33 two-bedroom units averaging $990 per month, and 32 one-bedroom units averaging $760 per month. Current occupancy is strong, with immediate upside available through strategic rent adjustments to market rates, unit renovations, and continued professional management efficiencies. The portfolio is well-maintained with city-provided utilities and solid infrastructure. Management operations are currently overseen by a professional team, with potential for new ownership to retain this structure for a seamless transition. Additional value-add opportunities include targeted interior updates, modest amenity enhancements, and improved expense management to align with market benchmarks.
Hazel Heights Apartments are located in the heart of Vermillion, the county seat of Clay County and home to the University of South Dakota. Vermillion is a vibrant, diverse community of 11,695 residents and has experienced consistent population growth over the past decade. The city offers a historic downtown, a thriving arts and cultural scene, and abundant outdoor recreation, along with a variety of dining and shopping options. USD is the state's flagship university and home to South Dakota's only medical and law schools. Recent campus expansions include new athletic facilities, medical school growth, and student amenities, which bolster the area's rental demand and economic stability. The Vermillion market has seen over $21 million in new commercial development in the past three years, including national retailers such as Runnings, Starbucks, and Family Dollar. In addition, the community recently celebrated the opening of a state-of-the-art aquatics center, providing residents with new recreational opportunities and enhancing the city's overall quality of life. This economic activity, coupled with the stability provided by the University and the city's role as a regional hub, creates a reliable tenant base and positions Hazel Heights Apartments as a secure, long-term investment.
Area Neighbors: Family Dollar, Dairy Queen, Casey's, Taco John's, Starbucks, UPS, University of South Dakota, Old Lumber Company, Dakota Dome, Sanford Clinic, McDonald's, HyVee, Walmart
Investment highlights
- Class A Property
- Fully Leased
- 1: 3 bed, 3 bath 33: 2 bed, 2 bath 32: 1 bed, 1 bath
- Mix of Apartments and Townhomes
- In Unit Washer and Dryer
- 66 Total Units
- 1 Unit of a 3 Bedroom
- 33 Units of a 2 Bedroom
- 32 Units of a 1 Bedroom
- Home to the University of South Dakota, a Division I school with an enrollment of approximately 9,500 students.
- Prime Vermillion location, situated just 7 miles from Interstate 29, Hazel Heights Apartments are only 40 minutes from Sioux Falls, SD, and 40 minutes from Sioux City, IA.
- Property Features – Multiple buildings located next to each other in prime Vermillion locations, featuring well-maintained structures, paved parking, and city-provided utilities. All units are individually metered for gas and electric.
- Management & Staff – Outsourced property management is in place, supported by an excellent on-site staff.
- Strong Investment Potential – Substantial rental upside available through targeted rent increases, interior updates, and operational efficiencies.
- Several major facility upgrades are underway or recently completed at USD, further solidifying Vermillion’s strong student housing demand:
- Wellness Center Expansion: Opening Spring 2025
- USD Discovery District (First Building): Opening Spring 2025
- Belbas Center Renovation: Recently completed, now housing the Business Office
- South Dakota Union Building Renovation: Reopening Fall 2024
- Churchill-Haines Hall Renovation: $9M approved by the South Dakota Legislature for updates
- Future Plans: USD aims to modernize East Hall & Dakota Hall in the coming years
- USD’s main campus is in Vermillion, with a satellite campus in Sioux Falls. Enrollment numbers continue to trend upward:
- Total Enrollment (Fall 2024): 10,619 students (All-time record)
- Largest Freshman Class: 1,371 new undergraduates
- Graduate, Law, & Medical Schools: Now at an all-time high of 3,000 students enrolled
- Additionally, USD houses the only medical school in the state, attracting students from undergrad institutions across South Dakota who are looking to further their education in medicine. This makes Vermillion a key location for long-term student housing demand.
- Vermillion Market Highlights
- Renters make up roughly 43% of the population in the Vermillion market with only 3.3% of housing units vacant.
- Vermillion population increased by roughly 2.7% from 2020 to 2023.
- Current population of Vermillion of 11,695 as of 2020
- Major employers include Walmart, City of Vermillion, Polaris, Masaba
- Vermillion unemployment rate is under the nation rate at 3.0%
Listing Contacts
Listed by NAI Sioux Falls
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