Aug. 26, 2024

It has been nearly two decades since new condominiums were built at West Lake Okoboji — and now, a Sioux Falls-area team is changing that landscape.

Dry Dock Estates is under construction with 27 condos on the site of a former hotel and restaurant in the northwest Iowa destination.

“This property was a real unicorn that had commercial zoning and waterfront,” listing agent Michael Jensen of Jensen Real Estate said. “We’ve had huge interest.”

The project combines ownership from Tod Quiring, owner of Huset’s Speedway in Brandon, and design from two Sioux Falls firms.

VanDeWalle Architects is the architect of record on the project, working with the developer and owner to establish floor plans, unit plans, exterior design and the selection of exterior finishes.

“Since we completed the construction documents, we have been involved during construction with answering contractor questions, reviewing shop drawings and job site visits for design compliance,” said Katie Krantz, a partner in the firm who worked on the project.

Sioux Falls-based Articulate Interiors is the interior designer of record, helping develop luxury interior finishes, lighting and plumbing fixtures.

“A fun aspect of the project for us was curating three suggested ‘finish schemes’ to help the homebuyers narrow down their interior selections — taking into consideration that all of them could be mixed and matched or work on their own,” co-founder Erica Locke said. “They are a hit with potential buyers and available for review in the model unit.”

The units are drawing interest from Sioux Falls buyers, Jensen said.

“Our main pull is the 100-mile ring, and that picks up heavy from Sioux City and Sioux Falls,” he said. “In general, our demand is high, and our inventory is low, and we’ve been pretty low for probably three years.”

Sioux Falls and the Okoboji area long have entwined as markets finding synergy between one another; for decades, Sioux Falls residents have driven business to the lakes as they vacationed or bought homes in the area. Now, increasingly, Sioux Falls businesses are finding opportunity in the area.

For both design firms, the project represents a first in the area for large-scale housing design.

Locke, who spent many summers at camps and boating in the area, has “a lot of nostalgia there,” she said.

“We have done some private homes along the lake for clients in the past, but this is the first large-scale housing project we have done in the Okoboji area.

“We are really excited to do more in this market, including luxury homes. We really shine in the large-scale projects, so this has really opened a lot of doors for our interior design firm.”

The condos range from three to five bedrooms, from 1,900 to 2,000 square feet. They’re priced from $1.2 million to $3.7 million, and seven of the 27 have been reserved — including four of the most expensive.

“I think the project is a level of refinement that we haven’t seen before, both in size, quality of fit and finish … and the level of planning that’s gone into this is really great,” Jensen said.

The main goal for design “was to maximize views of the lake while maintaining privacy for each resident,” Krantz said. “An angled facade creates interesting lines and layouts, which lead to 11 different floor plans.”

Enhanced wall and floor-ceiling assemblies were designed for optimal sound control for privacy between units, she added.

Articulate Interiors continues to work with buyers to help finalize selections and help with changes they request, Locke said.

“We’ve met some great families so far,” she said. “We also continue to work with the architect and contractor in reviewing any shop drawings and working through details, as well as job site visits until the project reaches completion.”

The condos’ modern aesthetic “takes things up a notch,” she added. “It’s an elegant and timeless design with a coastal feel. … We did not hold back on anything. For the space you’re investing in, every inch was thought of.”

Layouts were designed to reflect lake living, making maintenance easier and withstanding wear and tear over time, she said.

“We are always looking for the best-quality products, and we were able to inject those into these homes with natural stone countertops throughout, lime wash paint finishes, cast stone fireplaces, freestanding tubs — the list goes on and on,” Locke said.

The project stands out because “it’s amenities-forward,” Jensen said. “The amenities were thought of as a real selling point to the property.”

There’s a waterfall edge pool on the lakeshore, gas fire pits and lounge areas within feet of the water, with the option for owners to purchase a cabana.

“You’re in walking or biking distance to anywhere you want to be,” Jensen said. “From the pool deck and your condos every Saturday night, you’re going to see fireworks in the summer and watch the boats stream from other lakes.”

So far, most of the residents who are purchasing condos plan to use them seasonally. The project is scheduled to to be ready for residents in the spring.

“We really haven’t seen anything like this before, and that’s what’s so cool about it,” Jensen said.

Growing construction business

For Eagle Construction, “the lakes area has been a large part of our business over the last matter of years,” president Josh Kruger said.

Owner and CEO Steve Boote had spent time in the area, and “the more opportunity he saw and in getting closer with a lot of locals, it started to turn into more and more work for us,” Kruger said.

The company built Okoboji Motor Co., a General Motors and Toyota dealership, and then got into multifamily development with Tallgrass Apartments, an approximately 150-unit complex built in phases starting in 2015. The company then expanded into other apartment communities in the surrounding area.

“I think multifamily in vacation or transient towns is tough because the workforce is seasonal, but the lakes area has changed quite a bit in the last decade with the number of workers they’ve been able to retain and keep busy in the winter months, which is really a feather in their caps,” Kruger said.

Workforce housing was a focus for one recent Eagle Construction project at Arnold’s Park that opened last season — a 118-bed dormitory for international students who come to the area to work during the summer.

The idea was “to get everybody under one roof and provide secure, safe, clean housing for students coming from all over the world,” Kruger said.

The company also is working on another phase of the Central Park condos across the street from Arnold’s Park, with 13 under construction and more planned.

“It was an old trailer park, and there were storage buildings on it prior,” Kruger said. “Real estate in the lakes area has always been a very hot topic. A lot of the real estate that was bought just 10 years ago has increased in value faster than any other location around the Midwest.”

Eagle Construction is busy enough that it now has an office in a strip mall in the area.

“So we have a place to land our teams as needed and facilitate continuing to grow that way,” Kruger said. “We’re always looking at new housing opportunities as they continue to grow.”

Restaurant ownership change

Sioux Falls business owner Dave Dreessen sees the area’s appeal firsthand at Boss’ Pizzeria & Sports Bar, which he franchised inside the Lake Okoboji Resort in a space that used to be a Minervas restaurant owned by Sioux Falls-based WR Hospitality. Boss’ opened in late January.

“It’s gone really well,” Dreessen said. “We’ve picked up more and more business the longer we’ve been open.”

Summer brings opportunities for live music on the patio, while the adjacent conference center brings event business and catering opportunities.

“I have friends and family (in the Okoboji area) and had visited from time to time most summers,” Dreessen said. “I thought there was a need for a nice sports bar, and we have a full menu of specialty pizzas and do late-night delivery once people get off the lake, plus it’s located right on the golf course … so I thought that made a lot of sense.”

Most weekends, he’ll receive a message from someone he knows from Sioux Falls visiting the restaurant, he said.

“I’ve got sports teams from Sioux Falls that go to tournaments there, friends and family have stopped there, and even sometimes when I go have a pizza and a drink, I’ll shoot the breeze with someone next to me, and it turns out they’re from Sioux Falls or know somebody or have a business there, so there’s a lot of ties.”