The Sioux Falls Development Foundation experienced one of their most active months in land sales, with three individual projects in three different parks. Even though each sale had been in the works for quite some time, it was reassuring that each deal closed on time as planned.
Nordica Warehouses, Inc. exercised their option and acquired an additional 12 acres in Foundation Park. Nordica started building in Foundation Park last year with a 200,000 square foot warehouse. Before completing that first phase they pulled the trigger on Phase II, which represented an additional 105,000 square foot expansion.
The big draw to that site was that they were looking to take advantage of rail services; being able to have BNSF deliver product to their warehouse on a larger scale basis
“The big draw to that site was that they were looking to take advantage of rail services; being able to have BNSF deliver product to their warehouse on a larger scale basis,” said Dean Dziedzic, vice president for the Sioux Falls Development Foundation.
Plans for the new 12-acre site to the west is for 200,000 additional square feet, with the capability for further expansion in the future. Phase III construction is slated to begin this summer.
The second land sale included 39 acres of commercial (C-4) land in Campus Crossing near the northwest Wal-Mart. This property was originally zoned light Industrial (I-1) prior to the I-29 Marion Exit being constructed. The City determined the proper zoning for this land to be commercial. The Sioux Falls Development Foundation sold land to Wal-Mart in 2011 and subsequently two surrounding out-lots.
The Development Foundation’s Real Estate Committee recently made the decision to focus more attention on industrial development and the creation of primary jobs. This decision allowed the Foundation to market and list a 32-acre parcel and the two remaining out-lots in a bulk sale. A group of investors acquired the three parcels and will begin master planning for buildout and development.
The third sale in March took place in Sioux Empire Development Park (SEDP) VIII West, at the corner of I-229 & Benson. This represented a 21.74-acre land sale. This parcel was undeveloped and sold without any existing infrastructure. The Real Estate Committee made the decision to move forward with selling this entire parcel, mostly because it represented a challenge for industrial development with the access options and the topography of the land. The dollars from this sale will assist in developing and marketing land in SEDP VIII along I-229.
The activity and land sales in March provided a great deal of support to the bottom line and operations. As mentioned, these projects were in the works for quite some time leading up to their ultimate closing. It offers a great reminder why attraction and recruitment need to happen around the calendar; we never know when our economy will take a turn. Even with the current situation we remain optimistic with potential land sales. Some projects have taken a pause to reassess; but overall, we’re optimistic, and committed to working each project on their own timeline.