After decades away from Sioux Falls, returning residents find fit in first-of-its-kind rental community
Tami and Craig McKenzie have marked 10 major moves in their 42 years of marriage — but the latest led them home again. “I grew up in Sioux Falls, but my husband and I have been in the desert 24 years, and we just were far from family and knew we weren’t getting younger, so if we wanted to move closer to family, we needed to make that decision,” she said. But Sioux Falls is a significantly different place from when she grew up on the west side. So before committing to something permanent, it made sense to rent and get a feel for the community. “My sister-in-law was kind enough to connect us with an agent through Lloyd Cos., and we were able to see some rental properties last summer,” McKenzie said. “At that point, we talked about Willowbrook, and I said, ‘OK, here’s our minimum size requirement for a new place to live, we’re going to get our house on the market, so keep up apprised, and we’ll keep our eyes open.’”
It wasn’t long after that she saw a story on SiouxFalls.Business and was prompted to circle back and see if a three-bedroom property was available at Willowbrook Village. “We were able to find a home being built at Willowbrook that was close in size to what we had in Tucson,” McKenzie said. “We were thrilled this came available because we sold our house only two weeks after coming on the market.”
Willowbrook Village at 6544 E. Pine Grove Place is northeast of Veterans and Arrowhead parkways. The business model, while not unique nationwide, is the first fully build-to-rent community in Sioux Falls, offering single-family detached homes available to rent. The McKenzies moved late last October into a three-bedroom rental home with a walkout basement. “What we’re starting to find is that it’s a good option for both permanent residents and empty nesters or people looking to not necessarily be in Sioux Falls all the time,” said Chris Daugaard, a partner in Ernst Capital Group, which put together the investment for the development. “It’s a good option, where they have a stand-alone home, their own garage, no shared walls or halls, but they also can lock the door and leave when they want to, knowing that others are taking care of the details. They can sign a lease and try out the lifestyle without committing to buying it.”
Willowbrook Village was part of Ernst Capital Group’s recently closed Signature Fund VI, which put together two multifamily development investments for Signature Cos. totaling just under $50 million in real estate. Of the 45 homes available to lease in the Willowbrook property, 41 are already pre-leased, with 12 homes still under construction. “It’s a rental home, and it’s brand-new,” Daugaard said. “People are impressed when they go through. It feels more like a nice, newly built spec home. They’re very nice finishes, and we’re able to offer it at a rent price that is accessible for many people but still works for the project.”
Willowbrook residents rent either a two- or three-bedroom home with an attached two-stall garage. Snow removal, trash, lawn care and all maintenance are covered by the rent. “It’s a great part of town to be in, and more development is occurring coming all the time along Veterans Parkway and Highway 42,” Daugaard said. As an investment property, Willowbrook Village is structured such that at some point in the future, the homes can be sold to owner-occupants, or it could change hands as an entire complex. The McKenzies were happy that their first winter out of Arizona was a mild one, but they still appreciated snow removal from their property management team and are looking forward to becoming reacquainted with the community Sioux Falls has become. “We haven’t gotten to know our neighbors too much at this point, but everyone waves, and some people have stopped to talk, and they’re very nice,” McKenzie said. “The management is very good here, and it’s nice not to worry about another move for at least a couple years. I grew up here, and it’s nothing like it was, so there’s a huge learning curve.”