Senior-housing co-op expects to break ground next month
April 19, 2019
A 61-unit senior-housing project that offers a different ownership model expects to begin construction next month in southeast Sioux Falls.
The Village Cooperative has received a building permit for the $10.3 million project. The four-story building will be built along 77th Street east of Cliff Avenue near the University of Sioux Falls athletic stadium.
“Around 70 percent of the building is already sold,” said Shane Wright, a principal and vice president of Real Estate Equities LLC. “We’ve had a huge response in the area.”
The Village Cooperative is a co-op where residents own a share in the entire property. Minnesota-based Real Estate Equities began marketing the project here last summer.
It’s a great option for people who aren’t ready for assisted living but want a maintenance-free, community-centered home with the financial benefits of ownership, Wright said. At least one resident of the home must be 62 or older.
“We’ve got a great group of owners right now,” Wright said. “It’s been a really fun development so far working with these buyers. They’re just such a nice group of people.”
Gil Haugan Construction is the general contractor for the project. Construction is expected to take 15 months, Wright said.
The Sioux Falls property is the first in South Dakota for Real Estate Equities, which has 34 co-ops in eight states that are either open, under construction or scheduled.
Informational sessions about the project will be held in the next couple of months to help sell the remaining shares, Wright said. Contact information is available on the company’s website, and details on the meetings will be posted there.
“We explain what a cooperative is, pricing, how it’s structured, why people do co-ops, the history behind them, and people literally have hundreds of questions that we go through.”
The average cost of a share is $140,000, and the annual equity appreciation is fixed at 3 percent. Members pay a monthly fee for maintenance.
Most of the homes are two bedrooms and two baths, and some have a den. There are one-bedroom-and-one-bath spaces too, Wright said. The average size is 1,350 square feet.
“They feel like actual homes,” he said.
The co-op will include a fitness center, club room and reading areas. Other amenities include underground parking with a car wash bay, a guest suite that can be rented and raised garden beds.
“All of our communities are full with waiting lists,” Wright said. “This one will be full with a waiting list.”
