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Construction Loans in Sioux Falls, SD

Find lenders offering construction loans in the Sioux Falls, including Brandon, Harrisburg, Tea, and surrounding areas. Compare rates, terms, and programs from 13 lenders.

Lenders
13
Typical Rate
7% - 10%
Down Payment
20-35%
Term
12-36 months (construction period)
Closing Time
30-60 days

Construction Lenders Serving Sioux Falls

13 lenders offering construction loans in the Sioux Falls, SD area.

Bank of America

Charlotte, NC

One of the largest US banks. Commercial real estate lending, construction financing, and SBA loans through nationwide branch network.

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Broadmark Realty Capital

Seattle, WA

Private real estate lender offering bridge, construction, and land loans. Now part of Ready Capital. Loans from $500K to $25M+.

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CoreVest Finance

Irvine, CA

Rental portfolio and bridge lender for residential real estate investors. Build-to-rent and portfolio financing specialist. Redwood Trust subsidiary.

$200K – $50M
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JPMorgan Chase

New York, NY

Major CMBS originator and commercial lender. Full range of CRE financing including conduit, agency, and balance sheet.

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KeyBank Real Estate Capital

Cleveland, OH

Major bank CRE lender. Balance sheet, agency, and CMBS lending for multifamily, office, retail, and industrial properties.

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Lima One Capital

Greenville, SC

Private lender for real estate investors. DSCR loans require 1.5+ ratio, min FICO 700. 5, 10, and 30-year options. Up to 75% LTV on purchases.

$75K – $5M
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Merchants Capital

Indianapolis, IN

Bank-backed commercial lender active in 47 states. Over $6.8B in financing. Specializes in multifamily, affordable housing, and healthcare.

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New Silver Lending

FL

Direct lender for real estate investors. DSCR loans with no minimum DSCR requirement. Also offers fix-and-flip, bridge, and construction loans.

$100K – $5M
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PNC Real Estate

Pittsburgh, PA

Top-10 US bank with dedicated commercial real estate lending. Construction, bridge, and permanent financing for major property types.

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Stbridge Capital

Los Angeles, CA

Private money lender in California. Bridge, fix-and-flip, and ground-up construction loans. Fast closings for experienced investors.

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US Bank

Minneapolis, MN

Fifth-largest US bank. CRE lending including construction, permanent, and SBA loans. Strong in multifamily and affordable housing.

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Vaster

Miami, FL

Commercial bridge loan lender for CRE investors. Flexible short-term financing for acquisition, rehab, and construction.

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Wells Fargo

San Francisco, CA

Top commercial real estate lender. CMBS, balance sheet, agency, and SBA lending across all property types.

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Sioux Falls Commercial Real Estate Market

Sioux Falls is South Dakota's largest city and primary commercial center, with a CRE market buoyed by the state's lack of corporate or personal income tax, which has attracted financial services operations from Citibank, Wells Fargo, and numerous credit card processing companies. The Empire Mall area and the Western Avenue corridor are the established retail and office nodes, while the Foundation Park and northeast industrial areas have seen growing demand for warehouse and distribution space. Downtown Sioux Falls has experienced a redevelopment wave along the Big Sioux River, with the Falls Park area drawing hotels, restaurants, and mixed-use projects. The city's consistent population growth of roughly 2% annually has sustained absorption across all property types.

Key Economic Drivers

  • Financial services cluster including Citibank, Wells Fargo, and MetaBank credit card operations attracted by South Dakota's favorable banking laws
  • Sanford Health and Avera Health, two competing major hospital systems, driving medical campus expansions
  • Smithfield Foods' John Morrell pork processing plant and regional agricultural supply chain
  • South Dakota's zero state income tax and minimal regulatory environment attracting corporate relocations

Market Insight

South Dakota's banking-friendly usury laws have made Sioux Falls home to the credit card operations of some of the nation's largest banks, creating a unique concentration of financial services office demand that provides a stable, recession-resistant tenant base.

Construction Loans in Sioux Falls, South Dakota

Commercial construction loans fund new development or major rehabilitation projects. Funds are disbursed in stages as construction progresses. Most are short-term (12-36 months) and convert to permanent financing upon completion. In the Sioux Falls metro area, borrowers can access 13 lenders offering Construction financing, including Brandon, Harrisburg, Tea, and surrounding areas. Loan amounts typically range from $500K to $100M with rates from 7% - 10%.

Who Should Consider Construction Loans?

  • Ground-up development
  • Major renovations
  • Land + construction
  • Build-to-suit projects

Key Requirements

  • Detailed construction plans and budget
  • Licensed general contractor
  • Building permits
  • Development experience (strongly preferred)
  • 20-35% equity

Advantages

  • Interest only on drawn funds
  • Funds disbursed as needed
  • Can include land acquisition
  • Construction-to-permanent options available

Considerations

  • Requires detailed plans and budgets
  • Draw schedule inspections
  • Higher rates during construction
  • Completion risk on borrower

Construction Loans in Other South Dakota Cities

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