A Starbucks and an Anytime Fitness are opening in a new strip mall on the north side of Sioux Falls. “The area of northwest Sioux Falls has a growing population of students, with about 1,500 at Jefferson and more than 2,000 at Southeast Technical College.”, according to the article. The Starbucks location is anticipated to open mid-March.
Whether it’s working with investors or evaluating real estate opportunities, each element of her role is a good fit for Karla Jackson. A vice president at Ernst Capital Group, Jackson helps identify new real estate investment opportunities and works with investors to raise capital for these investments.
“I find my role with Ernst Capital Group to be both rewarding and exciting,” said Jackson, who joined the Ernst team 10 years ago. “I enjoy working with investors and have gotten to know many of them well over the years. And the real estate side of what we do is very exciting. There’s never a transaction that replicates the one before.” A north-central South Dakota native, Jackson grew up around real estate and finance. Her father was vice president of a community bank and owned a real estate firm that focused mostly on agriculture and residential transactions. Her first job out of college was in a banking call center environment. Her career evolved into business development, which ultimately connected her with Ernst. Jackson is a licensed securities representative, investment adviser and real estate broker, allowing her to provide a broad range of support to Ernst and its investors.
“I’m able to help with everything from raising capital, assessing new real estate investments, determining the opportune time to sell assets and communicating that value to investors,” she said. While many of Ernst’s recent investments have involved new-construction development projects, the firm also looks to purchase existing real estate. One example, WaterFall Plaza, led Ernst to acquire the existing retail and office center in south Sioux Falls. “We took a look at the asset and determined that it was a good fit for our fund,” Jackson said. “We have worked very hard over the years to establish a good reputation within the Sioux Falls market. We have selling groups approach us for nonlisted assets to see if we have any interest in buying. It feels good to know that groups feel confident in our process to reach out to see if we can strike a deal that works for both sides of the transaction.”
While there’s strong demand from accredited investors to work with Ernst, Jackson and colleague Chris Daugaard continually meet with interested investors. The process consists of meeting with new investors, reviewing the open offering and determining if it is a good fit. “Our investors like the local aspect of what our firm has to offer as they can drive by the developments and watch the construction progress until it is completed. We’re also able to offer larger commercial investment opportunities to people who might not have the opportunity to invest in properties like this had we not put together a fund.”
She’s also found a fit with the close-knit, locally focused team at Ernst. “It’s a small team, just eight of us, which makes it a great place to work. I enjoy being part of it and being surrounded by sincere, hardworking people. We support each other, and everyone is ready to jump in if help is ever needed,” she said.
Casey’s General Store has announced two more Sioux Falls locations, one on the northwest side of town and one on the southeast side of town in the Stadium Crossing development. In the article, Ryan Tysdal who represents Casey’s said, “the proximity to Sioux Falls Christian was a draw for Casey’s, along with all the surrounding neighborhoods. Coffee, doughnuts, pizza, sandwiches, pop – this will become a daily stop for many in the area.” Casey’s plans to break ground on both sites this year.
Ernst Capital is pleased to report that the sale of the Downtown Vue, LLC property located in Des Moines, IA has closed. The transaction was finalized on December 1st, 2022.
A new development on the southeast side of Sioux Falls off of 69th and Cliff that will include a blend of multi-family, office, retail, and restaurants. According to the article, “Our goal was to capitalize on the demand for housing while still being able to serve the people in the community and based on the demand we’ve been seeing in 2022, I think Stadium Crossing will accomplish that”, said Zach Jacobsen, a finance broker at Signature Companies, who is developing the project.
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.
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.”
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.
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.
Ernst Capital is pleased to report that the Signature Real Estate Income Fund II, LLC (“Signature Fund II”) has closed on its sale of the West 41st Street Commons property located on the west side of Sioux Falls, SD. The transaction was finalized on August 17th, 2022, as an out-of-state buyer purchased the property.