Dec. 22, 2025

This piece is sponsored by Ernst Capital Group.

As soon as Ernst Capital Group made its most recent two multifamily development opportunities available to investors, they responded.

“Honestly, these offerings sold out faster than any projects we’ve done in the last few years,” said Chris Daugaard, a partner in Ernst Capital, which connects investors with quality local real estate projects.

“The capital came in much quicker than we expected.”

The two multifamily projects are being developed by Sioux Falls-based Signature Cos. One is in Sioux Falls, the other in the Dakota Dunes area of North Sioux City.

“They both are fairly large projects, so they were separate investment offerings of $9 million and $8 million in equity, respectively,” Daugaard said.

The 168-unit Split Rock Townhomes in Sioux Falls are the second phase of Split Rock Village, which is on the city’s east side at 26th Street and Six Mile Road. It follows the first phase of traditional apartments that are set to finish early next year.

“It’s among the largest multifamily developments in the city,” Daugaard said. “In the townhome phase, we’ll have a blend of two- and three-bedroom floor plans, all including two-stall garages.”

All townhomes will include a full appliance package, including a washer and dryer, plus patios or balconies.

Rents will range from about $1,450 to $1,650.

“Our approach is to keep these as affordable as possible while still offering nice floor plans and amenities,” Daugaard said. “That’s our niche — a high-value property that’s still affordable.”

The combined community will offer 412 units when fully built out and share a strong package of amenities, including an outdoor pool, clubhouse with fitness center, game room and golf simulator, plus a large playground and dog park that will be built as part of the townhome project.

“The playground and dog park are larger than many of our other apartment communities, but this is a property that’s not quite as close to parks and schools even though it’s in a growing part of town, so we anticipate these will be widely used,” Daugaard said.

So far, new residents are responding to the development.

“Our first phase is renting up really well even though we dealt with road construction much of the season,” Daugaard said. “It was great visibility as it brought a lot of traffic by the community, but more broadly, I think the east side is really exploding, and from this location, you have easy access to Veterans Parkway, Dawley Farm Village and nearby amenities like Willow Run Golf Course, Arrowhead Park and the Big Sioux River — plus Good Earth State Park is just a short jaunt south. “Broadly, the townhome market continues to attract resident interest,” he added.

“Traditional apartments are still very appealing to people who want a high-quality apartment for the most affordable price,” he said. “However, townhomes can still be affordable, and demand has grown in the last few years as the single-family home market has become less affordable for many buyers. The townhome product is for someone who wants the single-family home experience but isn’t in the market to buy or who appreciates the flexibility that renting allows.”

Construction also has gone faster than anticipated, meaning some of the first townhomes will be available for tenants yet this year.

“The lion’s share of the project will be delivered next year, and we’ll finish the last part in early 2027,” Daugaard said.

In North Sioux City, the Prairie Dunes Apartments will offer a 177-unit mix of traditional apartments and townhomes on the edge of the Dakota Dunes area in North Sioux City.

“That metro hasn’t grown as quickly as Sioux Falls, but we’ve seen very, very strong demand and occupancy for multifamily in the North Sioux City area, and we like that we can stay on the South Dakota side of the border from a tax and regulatory standpoint,” Daugaard said.

“We’ve seen significant demand for high-quality, high-value housing with the amenity package we offer.”

The project is located in Union Crossing, North Sioux City’s first major mixed-used land development, bringing together eventual multifamily, high-density and traditional owner-occupied housing and commercial sites on one property.

“It’s a landmark deal for North Sioux City. For us, this is a very similar development to Split Rock in Sioux Falls but about half the size,” Daugaard said.

The plan is for two 50-unit traditional apartment buildings, offering studio, one-, two- and three-bedroom floor plans, plus 77 two- and three-bedroom townhomes. Both housing types will be built at the same time.

“We’ll begin to open units halfway through next year,” Daugaard said. “And we have some flexibility to adjust our building pacing if needed.”

The amenity package will be similar to Split Rock as well, with a clubhouse offering a fitness center and gaming area, outdoor pool, playground and dog park.

Investor interest in both Ernst Capital offerings was driven by multiple factors, including the opportunity to take advantage of lower-trending interest rates and more-favorable costs, Daugaard said.

“I think people also were looking to continue investing in their region. North Sioux City was an opportunity for some of our investors to get into a new market they hadn’t been in before,” he said. “Plus, we think the consumer trends are in our favor. We’re happy we’re in the affordable space and that we’re offering the sort of living option that seems to meet a growing number of people’s needs.”

To learn more about Ernst Capital, visit here.