Two new east-side multifamily projects are set to bring a wide variety of living options to residents, funded in part by local investors. Sioux Falls-based Ernst Capital Group recently closed its Signature Fund VI, helping finance two multifamily developments for Signature Cos. totaling just under $50 million in real estate. “We’re been thrilled with how our portfolio has been performing, with some of the best winter leasing we’ve ever seen,” said Chris Daugaard, a partner in the firm. “We’re anticipating that strong response to continue as we move forward with these two projects.”

The first, Willowbrook Village, already has its first residents moved in. It’s a new offering for the Sioux Falls market, bringing single-family, build-to-rent homes northeast of Veterans and Arrowhead parkways. This community of 57 single-family homes is being built by Signature and managed by Lloyd Cos. as one multifamily development, with property maintenance included. “They’re a mix of two- and three-bedroom homes, and all have two-stall, attached garages,” Daugaard said. “As people tour, they’re impressed. They’re commenting that it feels more like a newly built spec home than a rental home.” The deal was intentionally structured to create a win-win for residents and investors, he said. The goal is to provide a lot of value for an affordable rent. Finishes are high quality but not luxury, and while all maintenance is included, there isn’t an amenity package. “This type of development needs the right piece of land, and this location allowed us to do a lower-density development,” Daugaard said. “It’s a great part of town with a lot of development nearby or on the way, so it’s already a popular place to live and will become even more so.” Willowbrook Village already has leased 28 of its initial 30 homes, with more on the way. “We’re ahead of where we expected to be both from a construction and a leasing perspective,” Daugaard said. “We think this kind of development is a natural evolution for the Sioux Falls multifamily market.”

Not far away, Signature Fund VI’s second project, Split Rock Village, is under construction with its first phase. Located at 26th Street and Six Mile Road, the project will bring 244 apartments – a mix of studio, one-, two- and three-bedroom units. The first two 50-unit buildings have finished framing and will begin leasing in the coming months for move-ins later this spring. “We’ve been planning this project with Signature for a long time and purchased the property back in 2021,” Daugaard said. “We knew it was a little early for development, but with the growth of Sioux Falls, we anticipated it was going to be a great location sooner than later.” The first of multiple phases, the initial apartments will be served with a full amenity package, including a clubhouse, golf simulator, outdoor pool and patio.

In addition to the 244-unit project underway, there’s potential for 168 townhomes, which ultimately would make it the largest apartment development funded by Ernst Capital. “There will be some similarities to other projects in Sioux Falls, including Willows Edge in the northeast and Yukon at Benson in the northwest,” Daugaard said. “When we had an opportunity to secure that land, we knew it made sense over the long term because that area is going to become busier and busier.” The broader development also will have a commercial component, he added. “The hard corner is a good opportunity for retail, so we’ll either help develop it ourselves or look to sell it to another user,” Daugaard said.

Both projects build on a long history for Ernst Capital. “This was our 38th investment offering for Ernst Capital since 2007 and one of 16 investor offerings we’ve put together with Signature since 2009,” Daugaard said. “Just the 16 with Signature include more than 4,500 multifamily units in Sioux Falls, Des Moines, Rapid City, Omaha and elsewhere.”

Ernst Capital, which offers private real estate investments for accredited investors, partners with developers to assist in financing. “We work with developers that deliver high-quality projects while still offering workforce housing to our growing area,” Daugaard said. “It creates an attractive investment opportunity for people who want to invest in real estate and not deal with the day-to-day hassle of operating rental properties.”

Ernst Capital Group is beginning to work with new investors as it considers new projects in Sioux Falls and the Upper Midwest. “Really what we’re doing is helping investors from around the region participate in the growth of our region,” Daugaard said.

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Juice Stop is moving from its 57th Street location to a location on 69th and Cliff that has a convenient drive-thru. “We’re not moving because it’s not going good there,” owner Troy Jansma said of the location that opened seven years ago. “The new location will better accommodate customers. ”The relocated Juice Stop will be in a retail center at 69th Street and Cliff. The business will take the space on the west end of the retail center, which is just east of B&G Milkyway.”, according to the article.  

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