Uptown project starts in summer Third Street Loft will include retail space Argus Leader March 21, 2009 By: Melanie Brandert Sioux Falls residents will have to wait a little longer before the cornerstone of Uptown at Falls Park becomes a reality. Developers said the seven-story The Arches building is delayed until a major anchor tenant can be found. But in its place, the Third Street Loft building project will proceed and open next year, said Raquel Blount, vice president of commercial real estate at Lloyd Cos. "Fortunately, we have had a great deal of interest in lofts and smaller office space," she said. "We've had people say they want to sign a lease." Third Street Loft will be north of where The Arches will be built, featuring 30,000 square feet of office/retail space on the first floor and 120 one-and two-bedroom lofts on the upper three floors. Construction will start this summer, with completion in 2010. The Arches was to be the first structure erected at Uptown, joining existing buildings Larson Square and Tri-State Creamery. Those buildings have remained robust with 90 percent-plus commercial space occupied, much like other downtown businesses. The Arches' on-hold status can be linked to the recession, and larger tenants needed to fill 15,000 to 20,000 square feet of space are harder to come by, said Les Kinstead, president of Legacy Development. "With the economic slowdown, everything has been delayed," he said. "But we all have faith and confidence the economy is going to come back." Both Kinstead and Blount expect that Third Street Loft will draw some businesses already in Uptown - small professional offices, a bakery or restaurant. Business operator Andrew Meier is looking forward to the potential clientele as Uptown continues to develop and attract more people. He's general manager of A Taste of the Big Apple restaurant, which opened last October in the Larson Square building. "As a business, we want people to find out where we are at," he said, adding he is excited about downtown's growth. "It shows we're building and expanding and still doing what we need to do to go forward in this city." Meanwhile, Blount aims to land that major office tenant for The Arches - a deal that could occur next week or in six months. "We hope to bring that on as quickly as possible," she said.