Sign of progress: Downtown’s Railyard Flats breaks ground this week

May 4, 2020

Some developers might have put on the proverbial brakes.

Not Jeff Scherschligt and his family partnership, who will break ground this week on their latest effort to reshape the downtown Sioux Falls skyline.

“We think this is a time when leaders need to step forward and show confidence the future is not that dim and that things will recover,” Scherschligt said. “It’s a strong group of owners, partners, and design and construction team, and we just think it’s a real positive to move forward on this project even during this difficult time.”

With Railyard Flats, they will bring a first-of-its-kind construction style to South Dakota – a laminated, mass timber structure that aims to build on their success with the nearby Cherapa Place development.

A groundbreaking with limited attendance was live through Facebook at 3 p.m. Tuesday, May 5.

“I truly believe the uniqueness, the design aesthetics and quality of the structure is unlike anything I’ve been in,” said Anne Haber, a partner in the family’s Pendar Properties.

“We’re trying to introduce new, innovative, quality and sustainable design.”

The concept was brought to the team by partner and architect Co-Op Architecture, which also is moving its office to the building.

“We’re interested in shaping downtown. That’s what we care about, and this was a way to be a part of it,” principal architect Tom Hurlbert said.

“For most mixed-use and multifamily developments, the bottom line is how much money can we make off this. They’re so different because they think so holistically about projects. So they were talking about how do we make this great for the community and make it sustainable and attract people who are interested in the things we’re interested in.”

Scherschligt liked the idea for multiple reasons, he said.

“The mass timber takes elements of the strong quality of a cement and steel structure and puts it into a more economical and even more environmentally friendly status, which appealed to us following in the footsteps of Cherapa,” he said.

“And as part of the rail yard relocation, the building had to have historical aspects. So the design incorporates mass timber the way they used to build warehouses. So it’s taking historic warehouse construction material and bringing it into a new, modern facility, which I think will be really dynamic for people and fit the city’s vision for the relocation of the rail yard.”

The majority of the nearly 78,000-square-foot building will be mass timber laminated columns, beams and plank flooring. It will sit along East Eighth Street on property that used to be part of the rail yard.

The project fits the city’s vision for something that recognizes the historic nature and industrial quality of the area, Hurlbert agreed.

“And the design team and ownership group was interested in that as well, to make sure it had timeless qualities that would fit and be part of the fabric of downtown and not just a monument unto itself.”

The ownership group includes Pendar Properties, Co-op Architecture and the Howe and Hurlbert families.

The design team traveled to Iowa recently to see a similar structure.

“You walk in, and while there are hard surfaces in the floor – concrete – everything around you is wood and very warm,” Haber said. “Sound is absorbed beautifully. There’s a sense of warmth, of clean design aesthetics and noble materials. It envelops you.”

The 41-loft project will include one-, two- and three-bedroom options and enclosed parking.

“The layouts are beautiful,” Haber said. “We’ve even done things like add a mudroom and drop zone area, extra storage options, roof decks and really emphasized closets. The overall design is really well thought out.”

The lofts are designed for those with a wide range of lifestyles, including those downsizing from homes, she said.

“We know some residents will be coming from a larger home, and having three bedrooms allows them to downsize comfortably and still have a place for children and grandchildren but allow it in an urban environment.”

Tenant amenities will include a roof deck with dog relief area. There will be space for grills and bonus spaces inside where tenants can gather or rent for private events.

The courtyard “will be incredibly landscaped with hammock hooks, sculpture, fire pits, all different forms of outdoor seating and outdoor games,” Haber said.

The project incorporates nods to its rail yard past, including black railings and some steel throughout.

The office space in the project is spoken for, with Co-op planning to take about 4,300 square feet and one tenant finalizing a move.

Co-op has operated out an office at 300 N. Phillips Ave. since 2016 and will gain some space with the move.

“It was too good to pass up for us,” Hurlbert said. “Being able to design your own office is a pretty great luxury, and then being part of something like this with a new construction method for this part of the country and being part of a development and ownership team like this was enticing to us. It had everything we need. We love being on Phillips and love the building, but this was too good to pass up all around.”

There is one space left on the first floor “that could be used as retail, a restaurant or office space, but we haven’t made a determination what that use will be yet,” Haber said.

Journey Group is the construction manager and has started initial stages of work. Railyard Flats won’t open until next spring, but interested tenants can start reaching out.

“We’ll keep an informal list now, and we’d love to meet with people,” Haber said. “We want to make it very personal. If you get in early, they can lock in longer term leases and have an early choice of their unit design.”

Scherschligt looks at the project through the same lens as Cherapa Place 15 years before it – as a catalyst for redevelopment in an area of downtown that has been underutilized.

Just as Cherapa inspired development such as the Lumber Exchange and the restored Raven Industries, the hope is to set a standard with Railyard Flats that will do the same for the remaining rail yard property.

“Cherapa had a lot of firsts – the first new development on the East Bank, the first LEED-certified gold building, the first to use the extensive amount of quartzite – and in Railyard Flats, there’s a number of firsts as well. It’s the first on the relocated rail yard, the first mass timber new construction in South Dakota,” he said.

“And at the same time, it ties back to what Cherapa did where it used environmentally friendly building ways and a lot of public green space. On Railyard, you’re going to have the berm, the bike trail and a public courtyard that ties into SculptureWalk, and when you start talking public-private partnership, we’ve re-created that with Railyard Flats. It’s dedicated to this community. People will be proud of it, and they will want to embrace it, and I think they will have fun watching this construction go up.”

To watch the virtual groundbreaking live at 3 p.m. Tuesday, visit www.facebook.com/siouxfallsbusinessnews.

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Sign of progress: Downtown’s Railyard Flats breaks ground this week

“We think this is a time when leaders need to step forward and show confidence.” A first-of-its-kind development breaks ground downtown tomorrow — and we’ve got your first look inside.

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