Description

NAI Sioux Falls is proud to offer the opportunity to acquire Hazel Heights Apartments, a 66-unit Class A multifamily portfolio located in the heart of Vermillion, home to the University of South Dakota. Strategically positioned near downtown, major transportation routes, and just seven miles from Interstate 29, the property sits approximately 40 minutes from Sioux Falls and Sioux City. The portfolio consists of a well-balanced unit mix, including one 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. The property is fully leased and offers a combination of apartment-style units and townhomes, all featuring in-unit washers and dryers, individually metered gas and electric, paved parking, city-provided utilities, and professionally managed operations supported by an experienced on-site team. Hazel Heights benefits from strong rental demand driven by USD, a Division I institution with record Fall 2024 enrollment of 10,619 students, including the largest freshman class in school history and approximately 3,000 graduate, law, and medical students. As South Dakota’s only medical school, USD attracts students statewide, reinforcing long-term housing demand. Ongoing and recently completed campus improvements—including the Wellness Center expansion, Discovery District development, and major facility renovations—further strengthen the stability of the Vermillion rental market. Vermillion, the county seat of Clay County, is a growing and vibrant community of approximately 11,695 residents, with renters comprising roughly 43% of the population and vacancy rates near 3.3%. The market has experienced steady population growth and over $21 million in recent commercial development, including national retailers such as Starbucks, Runnings, and Family Dollar. Additional nearby amenities and employers include Walmart, Sanford Clinic, Hy-Vee, McDonald's, Dairy Queen, Taco John's, Casey's, UPS, Old Lumber Company, and the DakotaDome. Major area employers include Walmart, the City of Vermillion, Polaris, and Masaba, with local unemployment at approximately 3.0%, below the national average. This investment presents immediate and long-term upside through strategic rent adjustments to market rates, targeted interior upgrades, modest amenity enhancements, and continued operational efficiencies. With strong occupancy, stable infrastructure, professional management in place, and durable economic drivers anchored by USD and regional growth, Hazel Heights Apartments represents a secure and compelling long-term multifamily investment opportunity.