Sept. 8, 2021
The first apartments are coming to Lake Lorraine – and they’re unlike anything in town.
The Blu on Lorraine is being designed as a six-story building of about 125 apartments on the north side of the man-made lake in the development. It will incorporate a wellness theme and smart technology, along with complementary waterfront recreation opportunities that will be right outside residents’ doors.
The project is being developed by Mailbox Money and will be built by Veldhouse Cos., which also is a partner in it. Lloyd Cos. will be the property manager.
“We’re going to basically introduce a downtown feel that’s not downtown,” said Dusten Hendrickson, owner of Mailbox Money, which uses a syndication model to bring in investors for multifamily projects.
“This is a little more upscale area where you’ve got everything you need in walking distance.”
“What I love about the location is the water,” Caleb Veldhouse said. “There’s really no water in this town … but also the proximity to the major interstates and all the amenities that are around.”
Apartments will range from 504-square-foot studios to a two-bedroom unit with a den at nearly 1,300 square feet.
“It’s a Scandinavian design, a lot of white on white and a lot of plants, raw woods,” Hendrickson said. “The outside is a little more modern, same thing, with a lot of woods and whites and darks and a splash of blue throughout.”
The design is being finalized with VanDeWalle Architects. The plan is to break ground next month and open in the spring of 2023.
The property itself, which is east of Hyatt Place, is only 1.5 acres, so “it’s very dense,” Veldhouse said. “The main level will be enclosed parking on top of underground parking, and community space, fitness center, leasing office, and all the units are on second through sixth floor.”
Nearly every apartment will have an oversized deck, and a large portion of the sixth floor is being designed as community space.
Apartments on the south will overlook the lake, while on the north, they will look over Interstate 29, “but you’re looking over two gorgeous golf courses on the other side, so really wherever you are, you get a cool view. And being that high up in Sioux Falls is rare as well,” Veldhouse said.
In keeping with the wellness theme, the plan is to include bike storage, a small juice bar or kiosk for residents and a fitness space that includes multiple machines for recovery from workouts in addition to fitness and cycling equipment.
This will be the largest development to date for Mailbox Money, which was formed in 2018 and has apartments in Brookings as well as some smaller properties in Sioux Falls. Hendrickson, who has been investing in real estate since 2004, works with Dallas-based Boardwalk Wealth on investments, which also include properties in Arizona, Florida, Georgia and Texas.
He connected with Lake Lorraine co-developer Van Buskirk Cos. during the pandemic and learned a multifamily project was an option for the development.
“I don’t know why someone else isn’t doing it, but we got lucky enough to be the ones,” he said.