June 21, 2018

A 61-unit senior-housing project that will be built in southeast Sioux Falls will offer a different ownership model.

The Village Cooperative is a co-op where residents own a share in the entire property. The Minnesota-based company that’s behind the project has 32 co-ops in seven states that are either open, under construction or scheduled, said Shane Wright, vice president of Real Estate Equities LLC. The Sioux Falls property is the first in South Dakota.

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.

“The really healthy part of this is the community aspect,” he said. The co-op is operated on a democratic basis, with members electing a board of directors to oversee operations. Each home has one vote. In addition, residents gather for group activities and social functions.

“People can see each other,” Wright said. “That’s why the community is so strong.”

Construction is expected to begin early next year with an opening in 2020, Wright said. The site is just south of the USF stadium at 69th Street and Cliff Avenue.

The homes in the four-story building will average just under 1,400 square feet. Options range from one bedroom and one bath to two bedrooms, two baths and a den. There are 18 styles of homes, Wright said, and shareholders who get involved before or while construction is underway can choose their home’s finishes.

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. When a shareholder is ready to sell, there’s usually no problem finding a new owner because “the average wait list is several years for our communities,” Wright said. The co-op also facilitates the resale process.

Real Estate Equities has been building cooperative housing projects for more than a decade, so it knows which amenities are worthwhile, Wright said.

“We offer as much as they are going to use,” he said. “We don’t want them to pay for things they aren’t going to use.”

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.

The Sioux Falls project already has commitments for half of the homes, he said. The company has been doing limited marketing, hosting informational sessions.

“We knew if we could find the right location it would be accepted there really well.”