Four years after the beginning of planning an interchange at 85th Street, federal approval is allowing the project to move forward. “We’re looking to have development work get started in the next 12 to 18 months, and then from there we’d get going on hopefully some of the commercial-office land as the interchange starts to generate excitement. The goal is to get heads on beds out there sooner than later, so when it does open up it’s ready for really great commercial development. We’re working with the adjacent landowners to put a development plan together now. It’s been awesome to see the way that group works together.”, according to Jake Quasney. Please contact us if you have interest in having your business located in this area.

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When Ellsworth Air Force Base was selected as the home of the new B-21 bomber, it meant an influx of nearly 1,500 service members and their families would be coming to Box Elder, just east of Rapid City. In preparation for their arrival and the ongoing growth of the region, a new apartment community is under construction at the gateway to Ellsworth Air Force Base.

Called The Union, it will offer 229 apartments in its first phase, plus a clubhouse, and it represents a partnership between two Sioux Falls businesses committed to growing statewide. The Union is being developed, built and managed by Lloyd Cos., with financing support from Ernst Capital Group. “We’ll ultimately have room for a few hundred apartments, and we anticipate significant demand for them,” said Jake Quasney, Lloyd’s chief operating officer. “When you look at the base’s impact on the community of Rapid City, it’s huge. The stability of that combined with the other growth they’re seeing in the region makes it a great place to be.” It’s also a place in need of more housing, he added. “We have a great team in Rapid City and have really seen traction with our other apartment communities, including our tax credit housing,” Quasney said. “They’re still short of housing, so to have the opportunity to build something in such close proximity to the base and service the community and complement the amenities in the area was a no-brainer.”

Ernst Capital supported the $38 million project with a $7.8 million capital raise. “Ernst’s ability to capitalize a project makes them really great partners to be able to put together the whole package and deliver the investor group,” Quasney said. “They’ve got a strong reputation and for us to have a resource like that to have some of our capital raised by them is a huge value to us as a business with the number of projects we seek to deliver.” For Ernst, the project represents the real estate investment firm’s first deal in the greater Rapid City area. “It’s a unique investment because of the larger development around it and because we’ll be able to draw in folks that maybe want to live on the edge of Rapid City, east of town, as well as those who are going to be on base supporting all the activity there,” partner Chris Daugaard said. “We’d looked at different projects in the Black Hills, in Rapid City for about a decade and hadn’t found the right deal. Our development partners weren’t as active there, but now Lloyd Cos. has started to work on projects there, and when we talked about the demand they were seeing, it was eye-opening. Some of the data around demand and rents was so outside the norm we had to dig in, but we validated it, and it was very apparent Rapid City needed more options for housing and more variety of housing.”

Ernst came into the project “when Lloyd was pretty far along in planning,” he continued. “So we got it put together quickly. We were excited about it and wanted to jump on the opportunity.” The Union also will benefit from being part of Box Elder’s broader Liberty Plaza development. A partnership among the Department of Defense, state of South Dakota, city of Box Elder, Pennington County and Dream Design International Inc., the development is creating a downtown for Box Elder, which doesn’t have a main street. “Liberty Plaza will be a vibrant city center with retail, restaurants, coffee shops and public amenities and services,” said Kelsey Pritchard, director of marketing and communications for Dream Design International. “Liberty Plaza will be one of the most incredible developments in western South Dakota. Along with all the growth we’re going to see in the military population, more nonmilitary folks are going to want to make their way here to put down roots in this up-and-coming community.”

That includes Liberty Center, which is designed for military members and their families as well as the general public. It includes an indoor track, fitness equipment and weights, two basketball courts, group instruction rooms and space for community and military events, including recognition, promotion and retirement ceremonies. This facility also will be used by service members for physical training and certification. The amenities at The Union are designed to complement those at nearby Liberty Center. “It’s got a great clubhouse designed by Lloyd Design Group that will really tie into the community aesthetically,” Quasney said. “Our residents will enjoy a fitness center, outdoor pool, patio and fire pit, lounge and kitchenette with coffee bar.” Housing is a key element of what Liberty Plaza is trying to create in Box Elder and adds to its momentum, Pritchard said. “There is a lot of enthusiasm out here in the broader Rapid City area among business and community leaders to welcome the new mission and support our servicemen and servicewomen,” she said. “This includes coordination for housing, job creation for the spouses and family members of the service people and coordination to support any industries relocating to the area to support the mission. Liberty Plaza is one of our most talked about projects, and we’ve seen a positive response because of its mixed uses and its impact on the community. People are excited that Liberty Plaza will enhance the quality of life and catalyze economic development.”

The current and projected population growth in Box Elder is contributing to the broader growth of the Rapid City metro, Daugaard added. In the latest census estimates covering July 1, 2020, to July 1, 2021, “Rapid City sticks out among other metros,” he said. “It has the highest growth percentage in the region, and many of the metros are not particularly close. Their great outdoor environment and open economy led people who could work remotely to look at the combination of a strong economy and quality of life and choose to move. That all contributes to historically strong demand for housing, and we think The Union is definitely positioned to capitalize on it.”

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Chef April has opened a new location on the east side of Sioux Falls.  April plans to continue creating custom cakes and deserts but has also added a smaller event hall with full catering services. “It’s a great spot for baby showers and wedding showers and birthdays and rehearsal dinners,” according to April. She will be holding an open house on November 15th from 4-6 pm. 

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This week’s Up-and-Comer is Emily Claar, a senior associate at Ernst Capital Group.

Name: Emily Claar

Age: 33

Hometown: Mitchell

What brought you to Sioux Falls? After graduating from the University of South Dakota, I decided that remaining central to my family and friends was important to me. From there, it was an easy choice to move to Sioux Falls for its growing economy.

What keeps you in Sioux Falls? Sioux Falls has all the amenities of a big city but with a strong sense of community. We have a great group of friends, and it has been a wonderful place to raise our family. My husband, Paul, and our 4- and 7-year-olds love the small-town atmosphere. Many of our evenings are spent on family walks through our neighborhood.

What’s your favorite thing about your job? The highlight of my job — and the industry — is to watch ideas come to life. It’s interesting to drive through town and know our company has a part in making these projects happen. We also have the best team. Having a small but mighty team of eight, we’ve learned to really dial in on each other’s strengths and optimize our production. Don’t worry though, we still remember to have fun!

How did you get connected to your industry? In 2013, a friend let me know there was an opening at his company and thought I was the right person for the position. I was surprised to learn the depth of what goes into what we do. Ernst Capital has given me the opportunity to hone my skills and learn more about raising capital, the development process and asset management.

Describe Ernst Capital in three words. Consistent. Reliable. Dedicated.

What is something someone might be surprised to learn about you? Up until a few years ago, I really didn’t care for wine. I love it now! I love to try the different wineries in our area. Calico Skies is one of our favorites to visit, especially on Sundays with their live music and wood-fire pizzas. Many evenings, we enjoy ending the day on our deck with a glass of wine and the beautiful South Dakota sunset.

What’s your favorite way to give back to your community? I love supporting local businesses. Since our office is located downtown, we especially love dining, shopping and visiting the local breweries. Downtown Sioux Falls has such a fun atmosphere; there is always something to do.

What’s one business you’d like to see in Sioux Falls that isn’t here now? My husband will never let me live it down, it’s his favorite, and I was a nonbeliever, but I have to admit a Raising Cane’s would be superb. I would also appreciate an outlet mall; I’m pretty frugal and love hunting for a great deal!

Where do you see yourself in five years? In five years, I hope to see myself still developing and growing with Ernst Capital Group.

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An environmentally impacted downtown property owned by a railroad promises to be a complex redevelopment. But Iowa-based Hubbell Realty Co. had a vision for the 75-acre property in downtown Des Moines, persevered, partnered, and today is beginning to see the results of it. Gray’s Station, which sits along prominent Martin Luther King Jr. Parkway, serves as a connection between downtown Des Moines and the nearby 1,000-acre Gray’s Lake.

“It was an abandoned rail yard and a piece that many developers had looked at and passed because of environmental concerns,” said Kris Saddoris, vice president of development for Hubbell Development Services, who estimates the company began working on the property more than five years ago. “We had a good team in place and believed we were not dealing with huge, significant environmental issues but rather something that would take a lot of work. But we had done a site similar downtown, and we knew we could get it done, and we wanted to do something different than we had in the past.” Today, the first phase of Gray’s Station includes multiple apartments, single-family homes, retail and plans for more residential development. It’s also helped spark adjacent redevelopment, including a mixed-use project centered around a new soccer stadium. “We’re a long-term player in this market. We’re a 165-year-old organization and deeply entrenched in this,” Saddoris said. “Like many communities, we need population growth, and how you do that is creating things that bring people together. Especially post-COVID, where people can literally live anywhere, you have to create an environment that is unique.” The vision for Gray’s Station and the track record of Hubbell Development made it an appealing investment for Sioux Falls-based Ernst Capital Group, which has raised capital for multiple projects within it. “We knew the capability of Hubbell combined with the strength of the Des Moines market would make this an opportune partnership,” partner Chris Daugaard said. “It’s been exciting to watch Gray’s Station capitalize on that opportunity and deliver truly a unique product to the market.” Gray’s Station, which is primarily residential, offers an intentional design focused on making it incredibly easy to walk or ride a bike. All homes face into a green area. And Hubbell even built a bridge to make it as accessible as possible for residents to get to Gray’s Lake. “We wanted to take that 75 acres with this beautiful natural resource and create a neighborhood we haven’t seen before,” Saddoris said. “We have a multitude of pocket parks, unique lighting and great places to sit and listen to live music. And we wanted to make sure the neighborhood could get to the beach and swimming.”

The first phase of the development centered around the prominent corner of SW 11th Street and MLK Jr. Parkway, and became Linc at Gray’s Station, a 14,000-square-foot, five-story building with a pizza shop and brewery on the first floor and 85 apartments above. “That’s how we introduced the neighborhood, with very unique architecture and retail on the first floor,” Saddoris said.

A second adjacent building, LINC II, brought another five-story project, this one with 142 apartments. Ernst invested more than more than $11.7 million combined in the projects in 2019 and residents began moving in during 2020 and through 2021. “They’ve been a great partner,” Saddoris said. “They understand our story. We focus on creating something super unique each time, and they’ve been supportive of that. Anyone can build an apartment, but do you understand what creates value for the tenant? Why live with us as opposed to someone else? And Ernst understands it’s all these unique touches. They’re very good to work with. We spent a lot of time together early on, so they understand where we’re coming from.”

Additionally, 45 town homes opened in 2021, which also included a $2.68 million investment from Ernst. “The townhomes were leased before we completed them,” Saddoris said. “People want to live in the neighborhood, they want the lifestyle, but they don’t necessarily want to buy.” Residents at LINC enjoy a pool, two large fitness centers, including a two-story facility, a game room and several distinctive amenities. “We have a big work-from-home area, which has been a big driver, four different outdoor large decks and a test kitchen, which is an extremely popular feature,” Saddoris said. “Residents like to have chefs in and host cooking classes.” The intentional approach is reflected in the project’s success.“ Leasing was extremely successful here,” Daugaard said. “They whole project leased up very quickly. It’s obvious the care Hubbell took in designing and executing this project was recognized by the community.”

With multifamily success creating momentum at Gray’s Station, Hubbell then introduced 75 single-family homes, ranging from $400,000 to just under $1 million. The second phase will bring 79 homes along with 85 condos starting this fall. “We wanted as many housing options as possible,” Saddoris said. “People love the location. Their rooftop patios offer great downtown views, we have a minor league ballpark that shoots off fireworks nearby and one of the best farmers markets in the country.” At the same time, adjacent to the west end of the Gray’s Station development, the Des Moines community is leveraging a public-private partnership to build a 6,300-seat soccer stadium for a USL Championship league team, part of a broader 60-acre, mixed-use stadium district. It’s scheduled to open in 2025. “It’s primarily soccer, but there’s a big plaza, and the goal is to use it for multiple events, including downtown events that currently require shutting down streets,” Saddoris said. “Part of what we love is that it brings vibrancy to the area. Soccer is the biggest sport in the world, and it is going to further enhance the neighborhood and attract additional retail and restaurants, and fill in the whole corridor for us.” The broader development is a good example for other communities of how to blend residential, commercial and public facilities in an urban area, Daugaard said. “This checks all the boxes,” he said. “It optimizes underutilized land, takes advantage of natural resources, creates a destination for visitors and provides a huge range of housing opportunities to attract and keep people in the community.” Hubbell still has land to develop at Gray’s Station, even after phase two. It has some flexibility but likely will include more variety of residential options. “We’re super proud of this so far, we’ve had very good results and are thrilled Ernst has been a partner through it all,” Saddoris said. “They want to be part of something that’s successful long term, and that’s what we want to create.”

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DaaBin has opened a location on the east side of Sioux Falls. The store offers bins of overstock items for deeply discounted prices. The store is closed for re-stocking on Thursdays and Fridays and re-opened on Saturdays with new merchandise.  According to the article, Brock Huchinson, who owns the store with his wife, brother, and sister in-law, says “The first day on Saturday is $7 for any item, Sunday, we drop the price to $5 an item. Monday, we drop the price again to $3. Whatever’s in the bins on Tuesday goes to $1 an item. On Wednesday, for $10 you can fill a big plastic bag.” The new store offers bargain shoppers a unique opportunity to find deals on a wide array of merchandise.  

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Chef April Ausitn is relocating her business to a location on the east side of Sioux Falls.  This new location allows for a smaller venue that seats around 50 people. According to the article, Chef April said, “We’re hoping to do birthday parties, rehearsal dinners, anniversaries, baby showers, pretty much anything. The east side is struggling for a little small event area. People are like, ‘Where can we go?’” The space will seat up to about 50 guests, and the look will be “a little modern, very black and white and wood tones. Very pretty and elegant, but not too much where people feel uncomfortable.” The color scheme will make it easy for people to incorporate their own pops of color.”

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Starbucks is opening a location on the southeast side of Sioux Falls.  According to Raquel Blount in the the article, “…the density of housing out there and the growth to the east, the new apartment project and all the growth down 57th,” she said. “I think this will help them position themselves strategically to serve all the emerging neighborhoods and growing population areas.” Stadium Commons apartments are owned by Signature Real Estate Income Fund IV, LLC, the close proximity of a coffee shop will be another added value to future tenants of the property which is currently under construction. 

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