Gustafson Sells Office Building for 3rd Time
Bender Commercial partner Nick Gustafson, CCIM brokered the sale of 4320 South Arway Drive for a third time in his career. Gustafson previously sold the 2,942 square foot office building in 2005, 2011 and, most recently, in December 2020 for $407,500. The property is located near Louise Avenue and 49th Street.
The 17-year veteran was quick to point out that selling the same property several times is not out of the ordinary in Sioux Falls. “There are some great commercial brokers in Sioux Falls with incredible longevity. Brokering the same property in several transactions happens over the years. Selling the same asset a couple of times isn’t really the story here. This deal felt special because it was one of the first 10 properties that I sold in my career and its sale price growth illustrates how the Sioux Falls commercial real estate market has appreciated long-term,” Gustafson said.
Previous Sales
In 2005, Gustafson co-listed the property with another firm for a nonprofit that developed the property and had outgrown it. Gustafson reflected, “The original seller thought I was too young and inexperienced to list the property by myself, but seemed amused by my 24-year-old exuberance.” He represented both sides of the sale by finding a buyer.
Six years later, Gustafson co-listed the property again, this time with Bender Commercial’s Doug Brockhouse, SIOR. Gustafson again represented both sides of the sale of the building after he and Michael Bender, CCIM, SIOR brought one of their clients through the property in 2011.
December’s closing of the sale of 4320 South Arway Drive marked Gustafson’s third sale transaction of the property in 15 years. “The building is well-built and in an excellent location. Every buyer and seller of this asset has been a class act and have run their business and managed the property at a high level. I’m confident the new owner will appreciate the building for some time,” he said.
The property appreciated at a 4% annual rate since the original sale in 2005. “Sioux Falls is not a coastal city that can see outrageous property appreciation in a 12- or 36-month period. That said, Sioux Falls is thriving and really running on all cylinders. Long-term holds in commercial and investment property typically yield healthy appreciation and rent growth,” Gustafson said.
Gustafson sees more growth on the horizon for Sioux Falls. “In the next 25 years, don’t be surprised to see Sioux Falls look a lot like Omaha does today in size and regional influence,” he concluded.
