Grand Vision

Sioux Falls, S.D., company develops mixed-use community

BY KAYLA PRASEK

Danielle Merrow and Jarrod Smart have a vision for northwest Sioux Falls, S.D. — a vision of turning their 80 acres of land into a pedestrian-friendly community. The duo, operating as Universal Properties, has already opened one apartment building and started construction on a second.

The first 122-unit apartment building opened at University Hills Village in October 2014 and filled with residents within six months, says Merrow, broker and owner of Dynamic Real Estate in Sioux Falls. Construction started on the second $12.5 million, four-story, 126-unit apartment building in July. “The first building was very successful,” Merrow says. “With this second building, we’ll bring another 250 people to the community.”

The new building will be a mix of studio and one- and two-bedroom units, like the first building, but will feature more studio apartments. “What we’re finding is a lot of millennials and Gen X-ers don’t want to own houses, but they do want a home with a lot of amenities,” says Smart, owner and operator of Jarrod Smart Construction in Sioux Falls.

A third building, which will include apartment units and a clubhouse and swimming pool for residents, is in the plan- ning stages. “We’re hoping to accelerate the development of University Hills. We’re already talking about building three and hoping to start construction on it next summer,” Merrow says.

The apartment buildings include a fitness center, community room and lobby for residents to provide a hotel-like feel, as well as underground parking and storage units. Each apartment unit features a private deck, walk-in closets, central air conditioning, fully equipped kitchen with breakfast bar, and in-unit laundry room with washer and dryer. Some units also feature a den, office, dining and entertainment rooms. The development will eventually include a park and pedestrian walkways as well.

Merrow and Smart purchased the 80-acre property in 2008 and the location only continues to get better, Merrow says. “We bought it because it was a great piece of land, but the location keeps getting better. Since we purchased it, Interstate 90 exchanges have gone in, the South Dakota Research Park opened and a new Walmart opened.” The University Center educational campus and a data center also are near University Hills Village. Foundation Park, an 820-acre industrial park, is also being developed in the area, as is another mixed-use development called Hazeltine.

The University Hills Village community will be pedestrian-friendly and will include apartment buildings and a clubhouse as well as businesses that will serve the residents.

Universal Properties plans to build nine apartment buildings on the east 40 acres of the 80-acre tract. Once the project is complete, University Hills Village is expected to be home to more than 2,000 residents.

In addition to the residential development, the first 40 acres will include businesses to serve University Hills Village’s residents. Merrow envisions service businesses, including banks, restaurants and hair salons, as well as professional offices. Market demand will determine the pace of future apartment and business development, but Universal Properties will build to suit for interested businesses, Merrow says.

The second apartment building is expected to open in phases in July and August 2017 with pre-leasing beginning in early 2017. PB

Kayla Prasek Staff Writer, Prairie Business

701.780.1187 kprasek@prairiebusinessmagazine.com

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