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.”

Read More

Phase IV LINC Apartments, LLC Closed, Raised 7.1 Million

Ernst Capital is pleased to announce that fundraising for Phase IV LINC Apartments, LLC has closed. Private investors throughout the US committed $7,100,000 in capital for the development project located in Des Moines, IA. Thank you to all who invested in or considered Phase IV LINC Apartments, LLC.

LINC IV – The fourth phase of a multi-family development in Gray’s Station in downtown Des Moines, Iowa. Started in 2018, LINC I was one of the first components of the larger Gray’s Station neighborhood and is located on the prominent corner of MLK Jr. Parkway and SW 11th Street in downtown Des Moines. LINC IV is expected to bring 135 units and 51 attached tuck-under garages to the development, joining the greater multi-family community of LINC I, LINC II, and LINC III (Linc Townhomes).
The greater LINC community offers residents a market-leading amenity package, including several gathering spaces, state-of-the art business center, game room, two-level fitness center, theater room, dog park, outdoor pool and clubhouse with feature kitchen, and access to the neighborhood walking, running, and bike trail system.

Juice Stop opens new south side location

Juice Stop is has moved from its 57th Street location to a location on 69th and Cliff that has a convenient drive-thru. The new location opened last week at 1404 W. 69th St., and hours are 6:30 a.m. to 9 p.m. weekdays, 8 a.m. to 8 p.m. Saturday and 11 a.m. to 6 p.m. Sunday, according to the article.

Read More

East-side multifamily projects move forward with support from local investors

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.

Read More

Signature Fund VI closed, raised $18.9MM

Ernst Capital is pleased to announce that fundraising for the Signature Real Estate Income Fund VI, LLC has closed. Private investors throughout the US committed $18,900,000 in capital for the following developments.

Thank you to all who invested in or considered Signature Fund VI.

Willowbrook Village 
Signature Fund VI Ownership:
            100%

Willowbrook Village is a new single-family development in eastern Sioux Falls, SD that brings 57 new single-family homes for rent near the intersection of SD Highway 100 and Arrowhead Parkway. A mix of 2- and 3-bedroom units with attached garages feature all the comforts of single-family living in a convenient rental package with access to the future neighborhood bike and walking trail.

Splitrock Village
Signature Fund VI Ownership:            100%

Split Rock Village is a new multi-family development in eastern Sioux Falls, SD that is expected to bring 244 apartment units to the intersection of 26th Street and Six Mile Road. A mix of studio, 1-, 2-, and 3-bedroom units will offer residents flexibility to choose the right unit type, floor plan, and price point to fit their needs. There are also 76 garages available to residents at an additional cost. The development will feature an amenity package with a high-end full-service clubhouse including an outdoor patio and pool. Split Rock Village is the first phase of this development, with potential multi-family and commercial additions to come in future phases.

Juice Stop to relocate to location with drive-thru

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.  

Read More

Meet Our Team – Luke Bunkers

We’d like to introduce you to another member of our team, Luke Bunkers. Luke is an Associate with Ernst Capital where he assists with analysis, data verification, financial models, and regulatory compliance. Luke is a graduate of The University of South Dakota with a Bachelor of Business in Accounting and Finance. Luke joined the firm in January of 2022.

What do you like most about your job?
I have really enjoyed helping put deals together. From financial modeling to legal prep and everything else relating to due diligence, it has been awesome to see the work come to life from the ground up.

What is on your bucket list?
As an avid football fan, it has always been a goal of mine to watch a game in every NFL stadium. To date, I have watched my Cincinnati Bengals play in 3 out of the 32 stadiums. I hope to check a few more off the list in the coming years.

You’re happiest when?
There’s nothing more enjoyable to me than golf on a sunny (no wind) day. During the summer, I find every chance I can to hit the course with some buddies. I’m still chasing that hole-in-one!

Territory Real Estate Fund, LLC Closed, Raised 3.2 Million

Ernst Capital is pleased to announce that fundraising for Territory Real Estate Fund, LLC has closed. Private investors throughout the US committed $3,200,000 in capital for the acquisition of an existing apartment project located in Pleasant Hill, IA. This is the sole project in the fund. Thank you to all who invested in or considered Territory Real Estate Fund, LLC.

Riverwood Apartments is a well-maintained 69-unit apartment community in Pleasant Hill, Iowa. Pleasant Hill is a rapidly growing eastern suburb of Des Moines, located about 10-15 minutes from downtown Des Moines, Iowa. The city is located at the intersection of US Highway 65 bypass and Iowa Highway 163, and is in close proximity to Interstate 80 and Interstate 35 offering easy access to the rest of the metro. Riverwood Apartments is well located off East University Avenue and directly across the street from a Hy-Vee grocery store along with several other retail businesses.
The property is just under 10 miles from the new Amazon Distribution Center in Bondurant that recently added more than 1,000 jobs. A mix of 1-, 2- and 3-bedroom units will offer residents flexibility to choose the right unit type, floor plan, and price point to fit their needs.

Meet Our Team – Nick Gates

In May 2022, Nick Gates celebrated ten years with Ernst Capital. He joined our team in 2012 and became a partner in 2015. Nick heads the firm’s due diligence review process. He also assists with regulatory compliance, deal structuring and management of our investment partnerships.

What is the most important thing you have learned in your current role? I have learned a lot during my time at Ernst Capital.  In college and even before that none of my educational experiences went very far into commercial real estate.  Much of my knowledge was from hands on experience and learning from the ground up after starting as a financial analyst.   However, attention to detail is the most important thing I developed while at Ernst Capital.

What do you and your family do for fun? I enjoy time outdoors, golfing or hanging out with my wife, Jenn, and sons, Remington & Maverick.  Remington loves going to the pool, learning to swim, having squirt gun fights with Dad, and being a ninja.  Jenn is a Senior Client Advocate with Marsh McClennan Agency.  In her free time, she loves to exercise on her Peloton bike, spend time at the pool, or go for a walk with our two dogs Indie and Sophie.  

Meet Our Team – Emily Claar

In September 2023, Emily celebrated ten years with Ernst Capital, she joined our team in 2013 and is a Senior Associate where she assists with human resources, accounting, asset management, marketing activities, data collection, analysis and investor relations.

What do you like most about your job?
The thing that I most enjoy about working at Ernst Capital is the ability to watch a project come to life. Each project that we raise capital for is unique. Considering our projects are all in the region and many right here in Sioux Falls, it’s easy to drive by them frequently and watch the progress. Over the past ten years, I have watched so many parcels of bare land develop into full blown communities.

What do you like to do in your spare time?
Hands down, my favorite thing to do is spend time with my family. My kids, Braxton and Hadley are hilarious and watching them learn and grow is the most rewarding thing. My husband Paul and I stay (probably too) busy with house projects and travel when we can. The whole family also enjoys getting outdoors. My in-laws have a summer cabin in Canada, so we try to get up there to catch the really big fish at least once a year with the whole family. Even if they’re not biting, I’m more than happy relaxing with a good book.

Where is your hometown?
I moved to Mitchell when I was little and graduated from high school there, let’s go Kernels! My mom and most of her family still live in Mitchell, so it’s a quick trip to get back to visit when we can.

Privacy Settings
We use cookies to enhance your experience while using our website. If you are using our Services via a browser you can restrict, block or remove cookies through your web browser settings. We also use content and scripts from third parties that may use tracking technologies. You can selectively provide your consent below to allow such third party embeds. For complete information about the cookies we use, data we collect and how we process them, please check our Privacy Policy
Youtube
Consent to display content from - Youtube
Vimeo
Consent to display content from - Vimeo
Google Maps
Consent to display content from - Google