Feb. 11, 2021

Law partners Rhonda Lockwood and Tressa Zahrbock Kool were out of space in their downtown office and wanted to stay downtown, but they were coming up short.

“We couldn’t find anything, so it took us south, and looking at space it just seemed very generic office,” said Zahrbock Kool, “and then Reggie found this building at the bottom of a listing.”

Broker Reggie Kuipers of Bender Commercial Real Estate Services had seen the building at 121 S. Franklin Ave. on an auction list.

“He warned us you’ll need vision. It’s not turnkey,” Zahrbock Kool said.

He was right. But they also had a vision. And now, the new owners of the circa-1945 building that most recently was Discount Merchandise Center have a project on their hands – but one with lots of potential.

The building originally was a plumbing-related business. It was the family-owned discount center for nearly three decades before it closed late last year.

“We were really convinced we wanted to stay downtown. We’ve been here forever,” Lockwood said. “It’s close to the courthouse. It’s what we love, the downtown area.”

Lockwood & Zahrbock Kool Law Office is moving from the Gourley Building at 400 N. Main Ave., where they have five attorneys, two paralegals and an office manager. Lockwood started the firm, which specialized in family law, in 1996, and Zahrbock Kool became a partner in 2007.

Once they move their office into the building, there will be 4,000 square feet left to lease – and they’ve already had interest.

“We are doing a complete makeover of the space,” Zarhbock Kool said. “We’ve had some interested individuals reach out to us already, but we haven’t solidified anything for that existing space. Some may be storefront brick-and-mortar.”

There also are storage opportunities and a loading dock area connected to the building.

“There are no walls whatsoever, so there’s not a lot of demoing of walls, but we’re putting on a new roof, painting the outside, doing a really funky facade and a boardwalk in the front,” Lockwood said.

“And the front entrance is on Franklin and will be moved. So you enter from the parking lot with a green space and boardwalk taking you up to the front of the building.”

The plan is to move in later this year.

“Rhonda and Tressa saw value in the continued gentrification and expansion on the East Bank,” Kuipers said. “This is a rare site to find a stand-alone building with a plethora of on-site parking and high traffic counts on 10th Street. This project will be fun to watch unfold as they plan to transform that site to fit their law firm as well as a couple other tenants.”

The building “was extremely appealing to us as a blank slate and what we could create with it and the amount of land attached to it,” said Lockwood, estimating it sits on 1.5 acres.

“Phase one is our office and completing our building.”

After that, the remaining land could redevelop in multiple ways, including some residential.

“It gave us an opportunity to be part of this downtown culture that’s really coming alive here,” Zarhbock Kool said.

“With all the land that’s there, it backs right up to the rail yard with easy access to the bike trail. Long-term vision, Rhonda and I really see that area being developed for condos or apartments. Some kind of housing would be phenomenal down there with businesses on the bottom.”

They plan to hold a scholarship contest to invite a student to paint a mural on the outside of the building.

“Which I think will be an awesome thing for Sioux Falls as you come over the viaduct,” Lockwood said.

“We’re trying to continue to make downtown Sioux Falls come to life again.”

It takes vision, but “we have a great vision for this office,” Zarhbock Kool added.

“Once people see the life this building really does have, it will change the landscape of that area.”