"Outback Steakhouse" - Rapid City SD
Retail | 7.00% CAP | 6,500 SqFt
Marketing description
Rapid City is the primary economic, healthcare, and tourism hub of western South Dakota, located in Pennington County along Interstate 90 within the Rapid City MSA. The city anchors a multi-county trade area extending across the Black Hills region and into neighboring states, with a population of approximately 75,000+ supported by steady residential growth, regional in-migration, and its role as a commercial and healthcare destination for western South Dakota.
Historically rooted in military presence, tourism, and regional trade, Rapid City has evolved into a diversified market serving as both a residential base and commercial destination for a broad multi-county trade area. Commercial activity is concentrated along Interstate 90, Mount Rushmore Road, and major arterial corridors supporting national retailers, grocery-anchored centers, restaurants, and hospitality uses, while the subject property is positioned along the Heartland Expressway corridor with direct I-90 visibility.
The regional economy is anchored by Ellsworth Air Force Base (home to the incoming B-21 Raider program), Monument Health, regional government operations, South Dakota Mines, Western Dakota Technical College, and tourism tied to Mount Rushmore, Badlands National Park, and the Black Hills National Forest — providing one of the most stable and diversified employment bases in the Upper Midwest.
Investment highlights
- Tenant Reporting Sales - Tenant reports unit-level sales to ownership, providing transparency into store-level performance and long-term tenant health.
- Rent-to-Sales Ratio ±4.07% - Current rent represents approximately 4.07% of gross sales — a healthy occupancy cost signalling strong store-level profitability and durable tenant commitment.
- ±40 Unit Operator - Operated by an established ±40-unit Outback Steakhouse operator, providing scale, management depth, and balance-sheet support beyond a single-store franchisee.
- Below Market Rent - Current rent is positioned below market, reducing replacement risk and supporting long-term tenant retention beyond the current option period.
- Long-Tenured Operating History Since 2000 - Outback has continuously operated at this site for ±25 years, demonstrating proven site-level performance and established customer loyalty.
- Nationally Recognized Casual Dining Brand - Operated by publicly traded Bloomin' Brands (NASDAQ: BLMN), with 1,000+ locations worldwide, $4.4B in annual revenue, and an S&P BB credit rating.
- Strategic Interstate 90 Frontage - Positioned along the Heartland Expressway with ±23,815 VPD and direct I-90 visibility, capturing daily commuter and Black Hills tourism traffic.
- Primary Regional Hub of Western South Dakota - Rapid City serves as the dominant economic, healthcare, and retail hub for the Black Hills region and a multi-county trade area extending into eastern Wyoming.
- Diversified Anchor Employment Base - Trade area anchored by Ellsworth Air Force Base (incoming B-21 Raider program), Monument Health, South Dakota Mines, and regional government operations.
- Dominant Surrounding Retail Corridor - Surrounded by Walmart, Target, Sam's Club, Best Buy, Kohl's, Hobby Lobby, and Scheels, alongside Hilton Garden Inn, Holiday Inn Express, and Country Inn & Suites.
- Strong Trade Area Demographics - Five-mile population of 72,724 with $78,000 AHI and $1.2B in total specified consumer spending.
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