Sept. 28, 2021

A new development on the east side will bring the city’s largest stand-alone apartment complex and a slate of amenities to match.

The 425-unit PowderHaus Apartments plans to break ground next month on the northeast side of 41st Street and Veterans Parkway not far from Ben Reifel Middle School and Inspiration Elementary.

Renderings by VanDeWalle Architects

It’s the first multifamily project in Sioux Falls for Talon Development, a family firm connected to Sioux Falls-based Eagle Construction.

“We’re in 17 different cities now mostly across Iowa, South Dakota, Wisconsin; that’s what we’ve been focused on. But being Sioux Falls-based, we figured it was important to come back home and add to all the other great projects going on in Sioux Falls,” said Josh Kruger, president of Talon Development and Eagle Construction.

Kruger, whose stepfather Steve Boote is CEO of the businesses, spent time in Minneapolis after college and got into multifamily development. Eagle now specializes in multifamily construction.

PowderHaus, named as a nod to the powder house that was in the area nearly a century ago, will be four 88-unit buildings and several townhome-style buildings.

Rents will be “middle-of-the-road,” Kruger said, and will include utilities.

“So it’s a pretty easy place to live,” he said. “It’s pretty midmarket and definitely still workforce housing for some demographics in Sioux Falls.”

The design is a modern one that has a more urban look, inspired by research the developers did in the Twin Cities and Des Moines.

“Because of the location, nobody really thought of it being an urban feel, but we went with an urban feel for the entire development. We thought that was important,” Kruger said. “It’s a nicer facility, and we wanted to keep it modern-looking and bring some touches from the markets we’ve researched.”

There will be studios through three-bedroom apartments, but “every single unit … has a desk area or an office den, so people can work from home,” Kruger said.

The big differentiator is the amenity package, he said.

PowderHaus will include two outdoor pools, a splash pad, an outdoor basketball court, sand volleyball courts, dog parks, rooftop patios and fire pits.

Indoor amenities inside the clubhouse will include golf simulators, a large fitness center, dog wash, automated parcel rooms, arcade and conference room.

“That’s kind of how we wanted to set ourselves apart,” Kruger said. “There’s a lot of good properties, but we definitely are different in a way that we have more amenities to offer than any other project in Sioux Falls.”

If construction stays on schedule, building will be done continually for about three years, and the first residents will be moving in late next fall.

It’s the second major apartment complex to start construction along Veterans Parkway in recent weeks. North Dakota-based Enclave Development is bringing nearly 300 more apartments to the west side of Veterans south of 26th Street.

But with historically tight vacancy, Kruger said there’s room for more.

“We’ve always been keeping our fingers on the pulse of Sioux Falls and how fast they’re growing and what the need is,” he said. “It’s sizable, and with a big project like this, throughout construction it doesn’t act like a massive project. It acts like you’re just continuing, so it’s big, but if you break out our project versus the total amount in Sioux Falls, it’s not that out of line.”

North Dakota developer to break ground on upscale east-side apartment project