Downtown apartment project moving forward with market rates

Sept. 4, 2018

A new multistory apartment project is coming to downtown Sioux Falls, with a different financing model than originally planned.

The 3rd Avenue Lofts will be built on property bordered by Third Avenue on the east between 12th and 13th streets.

It’s being co-developed by Urban Housing Partners and Legacy Developments.

While a construction timeline hasn’t been set, a building permit for a four-story building with underground parking has been issued for the project. So has a demolition permit because a 1960s-era vacant commercial building will have to come down.

“The plan is to continue to move forward with the project. I just can’t say exactly when we’re pulling the trigger,” Legacy CEO Norm Drake said.

In 2015, the project received approval from the city for tax increment financing when it was planned as subsidized rental housing offset with federal funds. The market for tax credit housing dried up, however, about the time of the presidential election because of uncertainty for future deductions, and the project was restructured.

“We let the city know some time ago we weren’t going to pursue this, and it would have to be a market-rate project,” Drake said.

The city is in the process of dissolving the TIF district for that project.

Further details of the 3rd Avenue Lofts will be shared once construction is ready to start, Drake said.

Downtown apartment project moving forward with market rates

A new multistory apartment project is coming to downtown Sioux Falls, with a different financing model than originally planned.

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