Historic 6 Story Mixed-Use located in heart of Downtown Sioux Falls, South Dakota

[Craig Markhardt]

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $3,275,000
Cash invested: $1,185,000

Six story, 47 unit mixed-use historic hotel-conversion property located in heart of downtown Sioux Falls, South Dakota

What made you interested in investing in this type of deal?

Neighborhood, location, parcel of land, and opportunity for major improvements including constructing an addition on the 20,000+ square foot surface parking on property. This property is also in an Opportunity Zone, of which we created and operate an Qualified Opportunity Fund that will assist in capital raise, improvements, and tax-free gain on future sale.

How did you find this deal and how did you negotiate it?

We worked with the seller and his company, beginning in 2019 to purchase following their interior upgrades to the upper levels of the building

How did you finance this deal?

Portfolio bank financing with a 25 year term and 10 year maturity

How did you add value to the deal?

We will be upgrading tenancy in main level and making facade easement improvements to bring back to historical quality and style. Further plans include constructing a multi-story addition to include a courtyard, mixed-use tenancy and interior/underground parking

Lessons learned? Challenges?

Most challenging item was the requirement to close simultaneously with two other properties.