Mailbox Money Real Estate has reached a significant milestone in its Foss Fields development in Sioux Falls, South Dakota. The company has completed leasing on the first phase, a 100-unit property that is now fully open, and broken ground on a second phase that carries the largest building permit issued in the city in 2026. Once the planned third phase is complete, Foss Fields will be the largest apartment complex in South Dakota, with 500 units.
The announcement came alongside a ribbon-cutting event for Phase One, which celebrated the opening of the final building. Notably, 78 of the 100 units were pre-leased before the building's release, demonstrating strong demand for the market-rate housing being offered.
Phase Two of Foss Fields is a 250-unit project with an estimated cost of $26 to $27 million, which broke ground in June 2026. The scale of the permit reflects the findings of a formal HUD market study commissioned by Mailbox Money Real Estate. The study identified demand for more than 400 units in the immediate area, justifying the 250-unit second phase. The project is financed through a HUD-guaranteed note, making Mailbox Money Real Estate a HUD-approved developer for the first time.
Dusten Hendrickson, who leads the firm, explained that the HUD designation does not impose the typical restrictions associated with government-backed housing. “It’s a federal guaranteed note, but it’s a little different,” Hendrickson said. “It doesn’t tie your hands. We can still rent the units at free market pricing.” Unlike Section 8 or LIHTC-financed housing, Foss Fields' units are not subject to government rent restrictions or income qualification limits, allowing the property to operate at true market-rate rents while still carrying federal backing.
Foss Fields is strategically located along Veterans Highway, a secondary beltway connecting Interstate 90 to Interstate 29 on Sioux Falls' growing east side. Once construction on the corridor is complete, the intersection of Veterans Highway and East 10th Street, located half a mile from the property, is projected to become the busiest intersection in South Dakota. The property is also zoned within the Brandon School District, ranked the top school district in the state, and sits near the Dawley Farm shopping district, which includes a movie theater, grocery stores, and a range of restaurants.
Units at Foss Fields include one, two, and three-bedroom floor plans, with rents ranging from roughly $850 to $1,650 a month. Interiors feature quartz countertops, stainless steel appliances, and large windows. Amenities are concentrated inside the unit rather than in shared community spaces, a strategy the firm uses to keep rents lower.
Hendrickson noted that the ribbon cutting for Phase One, which included a Chamber of Commerce appearance and community open house, drew strong local interest. The groundbreaking for Phase Two has already generated public debate about the balance between housing affordability and new supply. With Phase One fully leased and Phase Two under construction, Mailbox Money Real Estate will begin planning for a third and final phase that would bring Foss Fields to 500 total units.
This development is poised to significantly impact the housing landscape in Sioux Falls, addressing a growing need for market-rate apartments in a rapidly expanding area. As the largest permitted project of 2026, it underscores the confidence in the region's growth and the demand for quality housing. Details on current investment opportunities tied to the Foss Fields development are available on the company's [current deals page](https://mailboxmoneyre.com/currentdeals).
