Garden Villas


Tzadik is under contract to purchase Garden Villas (78 units) in Sioux Falls, SD. The property was recently built in 2017 is in great condition. Our plan includes closing with a bridge loan, implementing our capex plans for the property, increasing rents to $1.27 PSF over 24 months and managing operating expenses before refinancing in Year 2 with long term debt.

  • Value Add

    Garden Villas current unit mix is renting for $890 per unit / $1.09 PSF which is well below the market rate for comparable 4-star assets in Sioux Falls of $1,051 per unit / $1.27 PSF.

  • Low Unemployment

    Sioux Falls currently has an unemployment rate of 3.2% vs the US average of 6.0%. Future job growth over the next ten years is predicted to be 36.6%, which is higher than the US average of 33.5%.

  • Low Taxes

    The Income Tax Rate for Sioux Falls is 0% while the US average is 4.6%. The Sales Tax Rate for Sioux Falls is 6.5% while the US average is 7.3%.

  • Population Growth

    Sioux Falls has historically achieved double digit population growth and is forecasted to continue this growth over the coming years. Additionally, the Garden Villas submarket population (within 1 mile of the property) is forecasted to grow +18% over the next five years. Apartment rents for class A and B assets in the Sioux Falls Market were rising at a 4% rate during the second quarter of 2021.


DISCLAMER: Although information has been obtained from sources deemed reliable, neither Owner nor Tzadik Management makes any guarantees, warranties or representations, express or implied, as to the completeness or accuracy as to the information contained herein. Any projections, opinions, assumptions or estimates used are for example only. There may be differences between projected and actual results, and those differences may be material. Neither Owner nor Tzadik Management accepts any liability for any loss or damage suffered by any party resulting from reliance on this information. If the recipient of this information has signed a confidentiality agreement regarding this matter, this information is subject to the terms of that agreement.

Property Summary
625 W 81st St, Sioux Falls, SD 57108
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