June 11, 2026

This piece is sponsored by LifeScape.

The nearly seven-acre LifeScape property in central Sioux Falls has been listed for sale as the organization prepares to transition to its new campus.

The real estate opportunity includes two buildings at 2501 and 2505 W. 26^th St. totaling nearly 132,000 square feet.

“This is a very rare offering,” said Marcus Mahlen of NAI Sioux Falls, the property’s listing broker. “It’s uncommon to find a property available in the middle of Sioux Falls with this many plug-and-play amenities already in place for institutional users.”

Completed in 1951, the property includes nearly 200 surface parking stalls, a full-service kitchen, residential space, classrooms, offices, a gymnasium with basketball court, indoor pool, loading dock and elevator access.

The buildings have been extensively updated, including roof replacements in 2018 and 2019 and a new chiller system installed in 2022.

“The property has been very well maintained during its entire history with on-site maintenance staff,” Mahlen said.

At an asking price of $9.9 million, he sees significant value for potential buyers.

“At roughly $75 per square foot, it’s at least half and probably closer to one-third of replacement cost in a great location,” he said.

Multiple possibilities for future use

The property’s versatility is one of its biggest strengths.

“It is very unique — essentially a hospital, clinic, dormitory, administrative offices, classrooms and recreation all wrapped into one property,” Mahlen said.

Potential uses could range from senior living and educational facilities to nonprofit, healthcare or wellness-focused operations.

“We see many potential uses,” Mahlen said. “The best reuse we see is a senior living center. With the full-service kitchen and elevators already in place, it offers a significant amount of space for residential living remodel and programming space.”

Other options could include a school or other non-profit or institutional opportunities – “anywhere that has residents living on site as well as services,” he added.

LifeScape CEO Steve Watkins also sees broad potential for the campus.

“The building is structurally very sound,” he said. “The footprint lends itself to mixed-use applications for developers seeking that type of footprint.”

Residential, clinical, educational, office and wellness uses already are reflected in the building’s current design, he added.

“The ability to bring that type of format into an existing neighborhood is something most cities don’t get a chance to do,” Watkins said.

The property is available beginning in mid-2027, with the potential for a sale-leaseback arrangement through the transition period.

New campus nears completion

LifeScape’s new children’s campus near North Career Avenue and West 34th Street North will be completed in two phases.

Phase 1, which is underway, will consist of a 185,000-square-foot facility encompassing the 18-bed pediatric specialty hospital, inpatient and intensive outpatient therapy, an expanded specialty school, children’s residential services and administration space. Phase 2 will add an indoor zero-entry pool, therapy pool, gymnasium and meeting rooms.

The organization has raised $106 million of the $110 million needed for the project and remains on track for occupancy beginning in late 2026.

“We have an incredibly kind and supportive community for the kids we support,” Watkins said.

The first buildings are expected to be turned over to LifeScape at the end of November, with the final phase completed in April 2027. Clinical services are anticipated to begin operating from the new campus in early 2027, with the full transition completed by the end of April.

The new campus is designed to expand LifeScape’s ability to serve children and families throughout South Dakota and the surrounding region.

“The new campus will be something the region should be very proud of,” Watkins said. “We have taken our time to design a campus that is state-of-the-art from a construction perspective and best-in-class from an operational perspective.”

While the sale of the current campus represents a significant milestone, Watkins emphasized that LifeScape’s new facility is not dependent on the transaction.

“We are not reliant on the sale of this building for the completion of the new campus,” he said.

Instead, proceeds from the sale will help fuel future growth.

“We are committed to reinvesting those funds raised by the sale of the existing campus back into the expansion of our clinical services across the state to address the wait-list challenges we now have,” Watkins said.

The project represents a continuation of a decades-long community commitment, he added.

“In 1948, this community came together to support kids with polio, and we now see that continued community support for our kids with this new facility,” he said.

“In the end, it isn’t about a new building. It’s about thousands of great kids and their families we support every year.”

For details on the central Sioux Falls campus, visit here: https://www.siouxfallscommercial.com/properties/2501-2505-w-26th-street-sioux-falls-sale/