Ellis Road corridor fills in with commercial activity to support growing population

Dec. 9, 2024

Scott Ausland is hoping the west side is ready for some thrifting.

The newest retail store for the Sioux Falls chapter of the Society of St. Vincent de Paul is accepting donations for its location on the northeast corner of 41st Street and Ellis Road, scheduled to open some time this month.

“It’s been a long time coming, but we’re excited to get it up and running, and the place is looking really nice,” said Ausland, general manager for both the new store and the nonprofit’s first location northeast of downtown Sioux Falls.

The opening is the latest in a series of new commercial activity along the Ellis Road corridor from 26th to 41st streets. As the Sioux Falls population has swelled — the area west of Interstate 29 would be the third largest city in South Dakota — businesses are following.

“The impetus of all that development was Fareway, a grocery store, because one of the best ways to start a retail development is with a grocery store,” said Ryan Tysdal of Van Buskirk Cos., who brokered that deal and represents the Westown Marketplace development where it’s located.

“You have all these other smaller users like Starbucks and McDonald’s and Dollar Tree that want to be near a grocer because of the daily trips they create. The grocer creates the traffic, and the restaurant and retail users around it draw from that traffic, so to have an anchor was critical to get that started.”

McDonald’s opened in the development earlier this year, and Taco Bell has submitted plans to the city of Sioux Falls for a restaurant there too.

The last two lots are under contract with national users, Tysdal confirmed.

“By year-end, we should be out of land,” he said. “With that being said, some of the buyers still have development projects. Not everyone who has bought a lot also developed yet, but you’re going to see opportunities for built-to-suit and small-shop retail space for all types of tenants. It’s been so underserved by commercial all these years.”

For the Society of St. Vincent de Paul, which has another store at 431 N. Cliff Ave., building a 27,000-square-foot store on the west side made sense, Ausland said.

“I think it’s a huge untapped market over there,” he said. “It’s about time that market over there gets some attention. We hope that we’re a good, solid part of it. I really think we’re going to be.”

The thrift store sells discounted clothing, household items, home decor, baby items, furniture and more. It also gives away diapers six times a month and has formula vouchers available, along with other functions to serve those in need.

The larger west-side building will allow more room for warehousing and training all under one roof, including housing unsold merchandise that can be shipped to brokers worldwide.

“We have markets for all the apparel and everything, so if people are unable to use it here, we can distribute it to many different locations,” Ausland said.

The corner of 41st and Ellis also will be adding to the area’s population. Lloyd Cos. is developing a new multifamily project, Harvest Ridge, on the southwest corner of the intersection — south of its FortyOne Flats apartments.

The entire project will bring 300 units in two or three phases. The first phase is 88 townhomes and is scheduled to open next year in late summer or early fall.

“The cool part about this phase is there will be three different styles of buildings, each with their own character,” said Luke Wietgrefe, development project manager.

“Each building will have a mix of two- and three-bedroom units, and nearly all the units will have two-stall garages.”

Leasing on the west side “is generally going well, and with continued commercial activity — just along Ellis — I think we are positioned well to see that continue,” Wietgrefe said.

“What stands out to me is the balance of the different uses. You have traditional townhomes, single-family, more-modern apartments, commercial, retail, all along the Ellis corridor, and it feels like one cohesive stretch. Its family-friendly atmosphere, proximity to schools, population growth trajectory and easy access to major shopping and downtown make this area a great spot for more development.”

Eye clinic, bank meet west-side need

American Bank & Trust chose the Ellis Road corridor for its fourth location in Sioux Falls, breaking ground at 26th Street and Ellis Road in October.

The plan is to open the 4,000-square-foot location next summer, accommodating up to a dozen team members.

“We decided to build out in the growing west-side neighborhood to better serve our customers with several locations spread out across the city for their convenience,” said Tom Shields, Sioux Falls regional president.

“While many larger banks are pulling their investments in our local economies and closing branches, AB&T is still living out our banking mission to invest in the communities that we serve.”

At nearby 2855 S. Lancaster Ave., off Ellis Road and just south of Sanford Health and Lewis Drug, an eye clinic is under construction for Jones Family Eyecare.

It’s a second location for Drs. David and Allison Jones, who opened in Brandon in 2012 — the same year they both graduated from Indiana University School of Optometry.

The goal of the practice is “to provide a high standard of eye care and personalized customer service,” Dr. Allison Jones said. “We are excited to add an additional location to further serve the west side of Sioux Falls and surrounding communities.”

The new location will be about 4,000 square feet with six exam lanes and a large optical area “to provide a wide variety of unique glasses selection for all ages,” she added.

The plan is to open in the spring.

Another lot in the area of 26th Street and Ellis Road was envisioned as a church but is back on the market.

“We get calls, and we’ve had a moderate amount of interest,” said Scott Blount of Lloyd Cos., who has it listed, adding it could fit up to a 35,000-square-foot single user or work for multiple tenants.

“Shenanigans does very well across the street,” he added. Owner “Don Rose was a little visionary when he went out there before there were that many rooftops, but he’s done well, and between 41st and the 26th Street area, I think it’s really strong and going to become a strong retail corridor.”

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Ellis Road corridor fills in with commercial activity to support growing population

Shopping, dining, new residential and the services to support it: You’ll find it underway all along Ellis Road.

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