Aug. 26, 2024

A local ownership group has purchased the Empire East retail center.

The property at 3800 S. Louise Ave. is fully leased and includes Ashley, Kohl’s and Ulta Beauty.

It was purchased by an investment group that includes Sioux Falls-based Cresten Capital and Matt Paulson, owner of MarketBeat.

The attraction of the investment “was definitely the location,” Cresten partner Erica Mullaly said. “It’s a staple of that 41st Street corridor, and it has great tenants with the national flags of Kohl’s and Ulta and the local flag of Ashley.”

The 165,000-square-foot property, which does not include the adjacent Target, also has a nostalgia factor as the original New Town Mall, the owners said. It included a movie theater and other tenants, including Barnes & Noble and Applebees.

“This acquisition is a really exciting opportunity to bring an important piece of commercial real estate back under local ownership,” Paulson said.

“The expansion of retail into the 41st Street and Louise corridors in the ’70s and ’80s was an important milestone in the city’s growth and expansion over the years. We hope to breathe some new life into this important piece of Sioux Falls history.”

Washington Prime Group was the former owner, and “there was a strong bidding process,” Mulally said. “The Louise Avenue corridor is great for retail.”

The sale price was about $13 million. Financing was provided by American Bank & Trust.

“We are proud to partner with and provide financing to bring ownership of Empire East back to South Dakota. This partnership is a great example of American Bank & Trust’s commitment to provide progressive community banking,” said Tom Shields, the bank’s Sioux Falls regional president.

“The property has a rich history, and most locals can share a story of an experience at the mall. We are confident that this shopping destination will continue to have a lasting impact and drive business for Sioux Falls with three strong tenants and an exceptional ownership group leading it.”

The new owners plan to make cosmetic improvements, including addressing landscaping and parking lot maintenance. Cresten Properties will manage the property.

The purchase builds on Cresten’s retail property portfolio in the area, including the retail center at 49th Street and Louise Avenue that includes Caribou Coffee and Five Guys Burgers & Fries, along with retail centers at 57th Street and Louise Avenue and at 69th Street and Western Avenue.