Dec. 4, 2023

A new development on the market on the southern edge of Sioux Falls is proposed as a mix of uses, including large retailers.

Academy Park is the name for the 75-acre development on the southwest corner of 85th Street and Cliff Avenue, adjacent to the new 70-acre Harrisburg School District’s Freshman Academy.

The land was private farmland for years. In 2020, Harrisburg School District purchased its property, and in 2021, the northern 75 acres were purchased by Bruce Nerison, who has several commercial properties citywide and is the owner of I-29 RV Supercenter and Wheel City Auto, among other business ventures.

“The great thing about working with a blank canvas as large as 75 acres is that we have so much land to work with; it creates opportunities for a variety of uses,” said Ryan Tysdal of Van Buskirk Cos., who is marketing Academy Park.

The site likely will include a mix of retail, entertainment, office, medical and multifamily users, he said.

The site plan shows potential for large retailers such as big-box stores or grocers but also several strip malls and other commercial buildings.

“Tackling a development of this size is like putting a puzzle together,” Tysdal said.

“We start with key anchor tenants, then build off that.”

Tomar Road goes through the center of the Academy Park site. Tomar and 85th will have a stoplight, which is appealing to retailers, Tysdal said.

“We’ll build off the retail anchor or anchors with outlots along the 85th Street and Cliff Avenue frontages, allowing opportunities for tenants such as small retailers, clinics and restaurants.”

National retail anchor deals typically take a couple of years to put together, he added. But the area brings significant appeal for development, Tysdal said.

He pointed to its location between the Harrisburg school, which ultimately is envisioned as a second high school, and 85th Street, which has evolved to become a strong corridor for retailers, offices and apartments.

“Schools drive development. We’ve seen the ‘Jefferson effect’ in northwest Sioux Falls; now we’ll likely see that happen in the southern part of the city as well,” Tysdal said.

“Retailers like the traffic and energy that schools bring to an area. Many multifamily housing developers are attracted to school-anchored sites. Apartment residents like proximity to schools for their kids.”

Ultimately, the area will feel like an extension of the retail at 85th and Minnesota Avenue, Tysdal predicted. The land around that intersection is limited by sewer access for now when it comes to growth, and current tenants are performing well, he said.

“Retailers have been viewing the southern part of Sioux Falls as completing the ‘retail trifecta’ for locations in the market,” he said, pointing to the areas around The Empire Mall and Dawley Farm Village as the first two hot spots.

“The reconstruction of the 85th and Cliff intersection was recently completed, so it really helps the property show well,” Tysdal said. “The current Veterans Parkway improvements also help create energy and interest for this part of the city.”

But similar to the Foss Fields project Tysdal is marketing on the east side of Sioux Falls, developments like this take time, he added, estimating it could be three to five years before dirt starts moving.

“It’s a slow process,” he said. “This is a relationships business. We use our connections with a wide network of retailers and brokers to put together a quality development like Academy Park.”