Nov. 15, 2021

This paid piece is sponsored by Journey Group.

It’s rooted in Sioux Falls history.

It’s new construction.

It’s a place to live.

But it’s also a place to work.

And it’s a place to socialize.

Downtown’s Railyard Flats blends a bit of it all: the old, the new and a multitude of uses all within one three-story building along East Eighth Street.

And that might not even be the most distinctive element about it.

The building is the first laminated mass-timber structure in the state and one of few nationwide. Throughout the project, construction manager at risk Journey Group was contacted weekly by others from across the country interested in learning more about this approach to building.

Now that it’s done, Railyard Flats is serving as an example to others of what’s possible.

The majority of the 78,000-square-foot building is modern mass-timber columns, beams and plank flooring.

“I think it turned out absolutely great,” said Tony Wiseman, director of project development for Journey Group.

“It turned out exactly like we intended. The timber is doing architecturally what it needs to be doing. It’s structurally accomplishing the feel of the project. And it’s achieving the look of something that’s going to be around a long time.”

That was the goal of family-owned developer Pendar Properties, which also is developing the nearby Cherapa Place additions.

“We had a vision for the railroad relocation land. There had been a few projects for the city that didn’t come to fruition, and we needed a win as a community,” co-owner Jeff Scherschligt said. “We’ve always had a reputation of doing what we say and getting it done.”

So even as the early months of the pandemic layered on uncertainty, Pendar Properties decided to break ground on Railyard Flats.

“Leaders continue to lead during difficult times,” Scherschligt said. “We love doing unique and quality things for our community, and we find people continue to embrace it.”

The mass-timber style was introduced to the project team by Co-Op Architecture, which designed the building and ultimately became a partner and tenant in it. Working with subcontractor and building partner Howe Inc. and engineer-build company StructureCraft out of British Columbia in Canada, Journey coordinated the unique building project while managing COVID-related obstacles for more than a year.

The posts and beams are European spruce sourced from Austria, and the dowel laminated flooring is a blend of three woods from British Columbia. Fabrication began in Austria, and then the columns and beams were taken by train to Germany before being brought to Sioux Falls where they were assembled sort of like a puzzle or a set of Lincoln Logs.

“Journey is a pro at what they do,” Scherschligt said. “The challenge was creating a new concept in our market, needing to get supplies, plus COVID issues during the process. But the team persevered, and we all had the vision going forward, and they have as good of an ability as anyone to work through challenges and bring a project to conclusion.”

The team had some key deadlines to hit. Leasing for the building’s luxury lofts took off fast, and residents needed to move in midsummer.

“Residents have been very happy,” co-owner Anne Haber said. “I really think people feel the difference in quality and materials. When people moved in, they said it felt like home right away, and I think that’s the use of the wood and all the natural materials. It just really brings a new warmth to the living and working spaces.”

The residents share a third-floor gathering room and fitness center.

And they have access to multiple private outdoor spaces, including a street-level courtyard and a third-floor roof deck.

“It is unique and certainly one-of-a-kind for this area,” project manager Jesse Davey said. “You can see the craftsmanship and quality the minute you walk in.”

Tenants hit their targeted move-in dates thanks to lots of coordination, Davey said.

“We had to look outside the box, make some decisions related to procurement challenges and do what we could to accelerate the schedule,” he said. “It was a good example of what can be achieved when a great owner, designer and construction manager collaborate to work through the challenges of a project.”

The building also includes Highball, a new cocktail lounge that was able to take advantage of patio season by wrapping up construction during the summer.

“It was really exciting to work with this project owner. I hadn’t worked with Pendar Properties before, but they were ‘roll up your sleeves, and get it done,’ and they viewed us as a team,” Davey said.

“It just felt like a very natural relationship even though I came into it toward the end of the project. Within a couple weeks, I would have thought we’d worked together a year and a half. It was a natural environment that fostered collaboration and teamwork.”

Journey and Pendar also will be working together on the three-building addition to Cherapa Place, just north of Railyard Flats.

“I think Railyard Flats really set the stage for what’s possible here,” Davey said. “You’ll see this approach carried into the future.”

The owners are “really happy with the end product,” Haber said. “It’s stunning. It’s beautiful. We’re very happy with how things turned out.”

The market clearly has responded with its support too, Scherschligt added.

“We want to thank the community for embracing our vision,” he said.

“We found the response to the apartments, the response to Highball, the community is supporting our vision and work, and it doesn’t work without them. We can build and do what we want, but it all comes back to how the citizens embrace it and if they care that you spend that extra dollar and that extra time and do that quality work. And we believe, based on the response as the building filled up, that they do value that as we do, and as you’ll see, we’re just getting started.”