Feb. 14, 2024

It’s hard to pinpoint exactly what the property could become, but local investors bought it banking on downtown’s future.

Eric Sivertsen and Justin Smorawske are partners in the marketing firm Epicosity and the fairly new owners of 114 S. Reid St., a vacant industrial building that dates back to the late 1800s.

“We just believe in downtown. We believe in Sioux Falls and its perpetual growth, and that was part of the reason we pursuesd this land and wanted to make this deal happen,” Sivertsen said.

The two have experience with transforming downtown properties. Their agency’s location at 300 N. Main Ave. is the former Good Shepherd location downtown.

The building on Reid Street most recently was a small-engine repair shop and originally was used to fix boilers out of trains that would come in on the adjacent railway – which explains why the exterior brick walls are 2 feet thick as a safety precaution.

The property also “has an amazing billboard,” Sivertsen added. “We have been in conversations with developers – some are out of state and some are in state – about what the potential of this land can be. If you look at this location, it’s right in the heart of downtown. You can see the river. If you’re multistory, you can see the Arc of Dreams and the new Cherapa, so that particular area is exciting.”

It’s also situated near what appear to be the next areas of redevelopment, both the Riverline District, where the city announced a vision last week to move the Sioux Falls Convention Center, and the proposed development east of 8th & Railroad Center from Christensen Development.

“They have a big vision,” said Nick Gustafson of Bender Commercial Real Estate Services, who has the property listed. “They’re just truly committed to downtown and have 100 percent confidence it’s going to be a great investment.”

The land was platted in the late 1800s and totals .37 acres with about a 3,100-square-foot building.

“We don’t know what the end tenant will be,” Gustafson said. “We’ve had interest, we’ve had people approach us about buying the property, and they’re listening, but I think the true goal is they want to be part of downtown transforming and evolving.”

There could be a way to renovate the building for a variety of uses, but it would take some investment, he added.

“There’s a lot that can happen here,” Gustafson said. “There’s a certain level of commitment needed. You can’t make that a super cool office by Tuesday.”