Residents to start moving into Jones421 building soon

By Jodi Schwan

Some of downtown’s first condominium owners will move into their new spaces in the coming weeks.

The Jones421 building at 421 N. Phillips Ave. plans to move residents into some of its first condominiums before the end of August.

There are nine out of 32 condos still available, said Craig Markhardt, a real estate and finance consultant who worked with developers Jeff and Sheila Hazard and Frontier Bank to put condo financing options together.

“It has had incredible sales,” Markhardt said. “Having over 70 percent of the units under contract prior to completion is a record for a condo project in a downtown setting in Sioux Falls or for any city in South Dakota for that matter.”

The price ranges allow for a variety of buyers, from first-time owners to retirees, he said.

Frontier Bank offered buyers’ financing with down payments as low as 5 percent, Markhardt added.

“Condo financing most often requires a larger down payment since the majority of condos do not meet the strict qualification standards required,” he said. “Traditionally, buyers must contribute a down payment starting at 20 percent; this is due to the fact that only nonconforming financing is usually available for projects. Lending has tightened, and condos are no exception. This is why we have been working very carefully to meet the standards to bring this type of financing to the project.”

The Jones421 project qualified for warrantable status, allowing buyers to receive the same conventional financing many homeowners access. While it took two years, the financing came together, and the first loans will close in the coming weeks, Markhardt said. He added that he expects condo ownership nationwide to experience an uptick.

“We wanted to ensure that anyone who had the desire to own at Jones421, could, as long as they met typical borrower qualifications,” he said. “As society changes, we are seeing a small movement to a more streamlined, smaller-impact lifestyle from both ends of the age spectrum: baby boomers and millennials. So I believe there will be a modest demand for this type of living where ownership in multifamily structures can benefit from lower utility bills, less maintenance and repairs, and more convenience versus a single-family detached home.”

Progress has been a little slower-going on the first-floor Jones421 marketplace, which originally was slated to open this month. It took longer than expected to acquire building permits. But all permits were done this week, and work is moving forward.

Six businesses have leased space on the first floor. There’s room for up to four more, depending on how much space tenants need. The plan is to open the first businesses, which includes a board game shop, coffee shop and several restaurants, within the next three months.

Local shops, restaurants sign on for new downtown marketplace

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Residents to start moving into Jones421 building soon

Some of downtown’s first condominium owners will move into their new spaces in the coming weeks.

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