SIOUX FALLS, SD -
We're getting our first look inside a vacant building that competing developers-turned-partners want to convert into the next hot business property in downtown Sioux Falls. Hegg Companies and Lloyd Companies have teamed up to purchase the former CNA Surety headquarters. They're planning $8 million in upgrades to the landmark.
The new owners say the office space at 9th & Phillips won't remain empty for much longer.
"We're talking hundreds of people, we could probably get 2-300 in this facility and it's attached to a parking ramp. We've had a lot of interest in prospective tenants," developer Paul Hegg said.
The goal is to turn the old CNA Surety building into a thriving commercial center, complete with retail, banks and a restaurant on the main floor, with offices on the upper floors. The building dates back to 1985. Its steel, concrete and brick framework will remain, but the interior will be gutted.
"We're going to be putting new windows in, new HVAC, new elevators and the like so all of those things are of dramatic nature, but basically, you'll have a brand-new building, but with a shell that is one you don't duplicate today," Hegg said.
The most ambitious part of the remodeling will include extending the top three floors another 22,000 square feet. Also in the works, a plaza to add some outdoor vitality to the building.
"People that work downtown are looking for experiences and to be able to have a plaza-type of environment that they can relax and maybe have a cup of coffee or have a business meeting outside when the elements are nice and socialize, and you don't have that everywhere else you go," Hegg said.
From top to bottom, from inside to outside, the building is poised for a transformation that developers hope will be an ideal fit for downtown.
"Now we can take what has been a pinnacle to the community and revamp it and make it that way again," Hegg said.
Hegg says another Sioux Falls company is looking at joining their venture and will occupy much of the building space once the renovations are complete. They hope to close on the building's purchase in November, with the remodeling slated to be finished eight months later.
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