Sept. 27, 2021

Expansion plans for the complex known as Cherapa Place have grown to include a 10-story building instead of nine floors and more retail space.

“It was driven by demand for office and condos and makes the project work better,” said co-developer Anne Haber of Pendar Properties. “And we have the parking to support it, which was the big key.”

Renderings by ISG

The design allows for someone to park underground and access any one of the four buildings without going outdoors. There will be tunnels underneath the site between buildings and a 5,000-square-foot above-ground connection between the original building and its new neighboring one that will double as event and gathering space.

“This is a whole complex and not a series of individual buildings,” Haber said of the project on the east bank of the Big Sioux River south of Sixth Street. “Cherapa Place is no longer just a building or building two or three or four. It is truly a campus, and I think all those structures will interplay with each other for a true live-work-play environment.”

The Bancorp building, which is connected to the original Cherapa, was proposed as nine stories but has grown to 10 based on demand for office space and condominiums.

The newest tenant to commit is Eide Bailly LLP, which will move into floors four and five. The certified public accounting and business advisory firm will leave its 20-year downtown office at River Centre.

“The River Centre has been a great office space and a great location for Eide Bailly in Sioux Falls for over 20 years,” the company said in a statement. “Like many companies, however, our needs have evolved due to the pandemic and the shifting of values, workstyle preferences and our team members’ desire for additional flexibility.”

Eide Bailly has more than 130 full-time staff in the Sioux Falls office and expects continued expansion in the area, it said.

“We are excited to design a workplace that enriches our culture, promotes collaboration among our teams, enhances our ability to hire and retain top talent and provides an environment that allows us to provide excellent care to our clients.”

Other tenants in the building include The Bancorp, which is taking floors seven, eight and half of six; MarketBeat, which is taking the rest of six; and ISG, which will be on the third floor.

That leaves only the second floor remaining for lease, with some deals in progress.

“It didn’t make sense to be two years from opening and have nothing available,” said co-developer Jeff Scherschligt. “And you have to provide flexibility to larger tenants so they can expand if they want.”

The addition of Eide Bailly further fits the building’s mix, he added.

“Eide Bailly has been a longtime downtown fixture with a professional workforce, and we think their industry lends itself to continuing to be in an office environment,” Scherschligt said. “We think they fit the quality and professionalism that really represents Cherapa Place.”

The updated design also includes slightly fewer apartments in the other two new buildings, totaling 228 units, with a slightly different mix of floor plans.

“Building three has a larger mix of studios and one-bedrooms, and building four still has larger units, so our average size went down with a mix of smaller ones we think might be more attractive,” Scherschligt said. “And we enhanced it by adding retail space.”

There’s also more outdoor space for tenants, Haber said.

“We changed the scope of design to include those amenities like more private courtyards,” she said. “I think you’ll find the quality is going to be there and the aesthetics are going to be there, and we’re going to have a range of sizes to allow people to manage their budgets.”

The retail space in those two buildings went from about 45,000 square feet to 60,000 square feet. There’s also retail planned on the first floor of The Bancorp building.

“We’d love to see a coffee shop, bakery, restaurant users, retail users, a grocery amenity, a gym, things that serve the whole complex,” Haber said.

The Bancorp building will include condominiums on the top two floors. Pendar Properties is going through the state-required process to sell them and expects to be able to start within a month.

The design calls for a dozen condos, though that could adjust.

“We’ve had great interest in the condos,” Haber said.

“We’ll be meeting with people and sharing our set prices at that time. We’ll have more information about the building amenities and views and drawings and homeowners association.”

Sizes likely will range from 1,500 to 3,000 square feet, plus decks, Scherschligt said.

“These are very unique,” he said. “You’re talking about a space where in my lifetime there might not be taller condos than nine or 10 stories. And you’re on the river, and this is what true mixed use really is.”

The campus also will include a central courtyard shared between buildings and the public.

“It can be kid-friendly and great for young adults or retirees,” Haber said. “We see things in the courtyard like games, swings, art and added placemaking.”

Office tenants and condo owners are scheduled to begin moving in later in 2023, with the apartment mixed-use buildings following after that.

In the meantime, other key milestones are being reached. Pendar Properties closed on the land recently, and the city signed off on its development agreement. A groundbreaking is scheduled for 4:30 p.m. Oct. 25.

“We’re trying to balance density and walkability and just open up these spaces to make them better,” Scherschligt said. “It’s really the combination we finally hit upon. I’m excited. I’m proud we can bring this to Sioux Falls because I think it just shows the maturity and growth of our community and what the next decades really portend for this community.”