SIOUX FALLS, S.D. (KELO) — A new apartment complex is breaking ground in a growing area of downtown Sioux Falls that will soon bring a big change to the corner of 2nd Avenue and 13th Street. 

“When you look at this part of downtown, Prescott Place used to be two vacant lots that were kind of an eye sore and that’s not the best use for the property,” Vice President of Legacy Developments Daren Ketcham said.

Legacy Developments has started construction on a 46-unit apartment complex just two blocks east of Phillips avenue.

“It’s really an emerging area of downtown, a quieter place to live than right on top of some of the hustle and bustle of Phillips avenue,” Ketcham said. 

“I work on Phillips Avenue down close to the Falls, I own a home decor boutique,” 3rd Avenue Lofts tenant Taryn Raabe said. 

Raabe’s recent search for a downtown apartment led her to the new 3rd Avenue Lofts just across the street from the site of the future Prescott Place apartments.

“This place is really growing, you’re not right on Phillips which is nice, that’s where all of the restaurants and shops are, but you’re not right on top of it and we’re only two blocks away so I walk down to those areas all the time,” Raabe said. 

With the new Breaks coffee shop, Sunshine grocery store and Kirby dog park all nearby, this corner of downtown Sioux Falls is seeing a boom in housing.

“Downtown continues to see strong demand for rental units of all price points,” Ketcham said. 

With Legacy’s 3rd Avenue Lofts opening last year and the Prescott Place apartments set to open early next year, Legacy Developments is working to make downtown living more affordable.

“We envision offering the majority of these units starting under $1000 a month, which to get these types of amenities in downtown Sioux falls at that price point is pretty hard to come by. SO we’re very optimistic about how this will go and we look forward to the next 12 months of construction.

The Prescott Place apartments will welcome its first tenants in March of next year but will begin leasing even sooner.  

Drivers in the area can expect a lane closure on 2nd Avenue while construction is underway.