Everhome Suites®
Sioux Falls, SD
A ground-up, 114-room extended-stay hotel adjacent to the Sanford Sports Complex — one of the most visited sports destinations in the United States.
Strong Returns. Prime Location.
Proven Brand.
MSF Hotels, LLC is offering accredited and sophisticated investors the opportunity to participate in the ground-up development of a 114-room Everhome Suites® extended-stay hotel in Sioux Falls, South Dakota.
The property is located directly adjacent to the Sanford Sports Complex — a 500-acre, master-planned sports and entertainment campus drawing 2.4 million annual visitors. The site sits within a federally designated Qualified Opportunity Zone.
The offering is structured as a Regulation D, Rule 506(b) Private Placement, open to accredited investors and up to 35 non-accredited but sophisticated investors. Class A Members receive a priority 8% distribution before any profits are shared, and bear no personal guarantee obligations for the construction loan.
Investment Terms
| Offering Entity | MSF Hotels, LLC |
| Units Offered | Class A Membership Units |
| Total Equity Raise | $5,500,000 – $6,500,000 |
| Minimum Investment | $100,000 |
| Priority Distribution | 8% per annum, cumulative |
| Operating Split | 65% Class A / 35% Class B |
| Capital Return Target | 100% at Year 5–7 (2032–2034) |
| Hold Period | 10 Years (through 2037–2038) |
| Regulation | Reg D, Rule 506(b) |
18.6% IRR Over 10 Years,
With Capital Returned at Year 5–7
Annual Priority Distribution Rate
*Projections based on financial model assumptions. Not guaranteed.
Detailed Return Schedule
| Metric | Value |
|---|---|
| 10-Year Target IRR | 18.6% |
| Avg. 5-Year Cash-on-Cash | 12.4% |
| Year 1 Distribution Rate | 8.31% |
| Year 2 Distribution Rate | 13.17% |
| Year 3 Distribution Rate | 13.62% |
| Year 4 Distribution Rate | 13.44% |
| Year 5 Distribution Rate | 13.56% |
| Capital Return Target | Year 5–7 (2032–2034) |
| Projected Sale | End of Year 10 (2037–2038) |
114 Suites. 59,492 SF.
Purpose-Built for Extended Stays.
Key Amenities
| Specification | Detail |
|---|---|
| Address | 2801 N. Westport Ave, Sioux Falls, SD |
| Total Project Cost | $18.3 Million |
| Room Count | 114 One-Bedroom Suites |
| Floors / Elevators | 4 Floors / 2 Elevators |
| Parking | 133 Spaces |
| Gross Square Footage | 59,492 SF |
| Projected Opening | Late 2027 / Early 2028 |
| Zone | Qualified Opportunity Zone |
| Brand | Everhome Suites® by Choice Hotels |
| Construction Loan | $12,776,000 |
| Loan Terms | Prime minus 1%, fixed 5 years |
| Builder | Pro Commercial (60+ years experience) |
2.4 Million Annual Visitors
Walking Distance from the Front Door
The hotel site is located directly adjacent to the Sanford Sports Complex — a 500-acre, master-planned sports and entertainment campus that is one of the most visited destinations in the United States. The complex hosts amateur, collegiate, and professional athletes and events year-round.
Sanford Sports Complex Facilities
Adjacent New Developments
$100M+ investment — predicted to be South Dakota's largest economic driver
Flagship command center for healthcare education and training
Sioux Falls Outperforms the Nation
Every Year — and Demand Keeps Rising
Sioux Falls hotel occupancy has risen three consecutive years — from 64.8% in 2022 to 67.0% in 2023 to 67.9% in 2024 — while the US average has stagnated. The local market has outperformed the national benchmark every single year on record, and average daily rates have grown at 5.16% per year since 2019, signaling a shift toward higher-value visitors.
| Hotel | Class | Rooms |
|---|---|---|
| Grand Stay Hotel & Suites | Upper Midscale | 50 |
| Home2 Suites | Upper Midscale | 80 |
| TownePlace Suites | Upper Midscale | 92 |
| Staybridge Suites | Upscale | 90 |
| Candlewood Suites | Midscale | 80 |
| My Place Hotel | Midscale | 64 |
| Market Average | — | 67.9% (2024) |
Source: CoStar Group / Johnson Consulting, October 2025. Commissioned by the City of Sioux Falls (Riverline District Convention Center Phase 2 Report). †2025 data through April 2025.
Sioux Falls vs. US Average Occupancy
2022–2024: three consecutive years of local growth above the national benchmark
- Sioux Falls
- US Average
Source: CoStar / Johnson Consulting, Oct 2025 (City of Sioux Falls). †2025 through April only.
Everhome Suites® — The Fastest-Growing
Extended Stay Brand in Hospitality
Everhome Suites® is the newest franchise brand from Choice Hotels International — the world's second-largest hotel franchisor with 7,400+ hotels in 46+ countries and 56 million loyalty members.
The brand was purpose-built to capture the fastest-growing segment of the hotel industry: midscale extended stay. Its value-engineered design, smart operating model, and home-like guest experience drive higher occupancy, lower operating costs, and stronger NOI compared to traditional hotel formats.
75+ Years of Combined Hotel
Experience Behind This Project
Craig Markhardt
Craig brings 30+ years of experience in real estate development, construction management, and mortgage finance. He spent 19 years as a licensed mortgage lender across five states, authored South Dakota's current mortgage lending legislation, and has served on the Sioux Falls Zoning Board of Adjustment and the City's Growth & Development workgroup. He holds a South Dakota real estate broker associate license and a degree from South Dakota State University.
Bill Folkerts
Bill and his team bring 75+ years of combined hotel management experience. Venerts Investments has developed, built, managed, and/or operated approximately 25 hotels over 30+ years, with ownership or management responsibility for 35+ hotels. Bill has served as President of the South Dakota Hotel & Lodging Association and on the American Hotel & Lodging Association Board.
Qualified Opportunity Zone +
Real Estate Ownership
The project is located within a federally designated Qualified Opportunity Zone (QOZ). Eligible investors may benefit from significant tax advantages in addition to their investment returns.
Capital Gains Deferral
Deferral of capital gains taxes on invested funds through the Qualified Opportunity Zone program.
Capital Gains Reduction
Potential reduction or elimination of capital gains on QOZ investment gains if held for 10+ years.
Depreciation Deductions
Pass-through depreciation benefits associated with direct real estate ownership in an LLC structure.
Maximized After-Tax Returns
Tax-efficient LLC structure designed to maximize the net after-tax returns for all Class A Members.
*Investors should consult their tax advisor and legal counsel regarding the specific tax implications of this investment.
Join as a Class A Member
Minimum Investment $100,000
Steps to Invest
Request the PPM
Complete this form to receive the full Private Placement Memorandum and be contacted by our team.
*This form is for informational purposes only. This is not an offer to sell securities. This offering is made under Regulation D, Rule 506(b) and is available to accredited investors and up to 35 non-accredited sophisticated investors.
Download the Materials
Review the full pitch deck and one-page investment summary before requesting the Private Placement Memorandum.
Investor Pitch Deck
14-slide presentation covering the full deal — opportunity, returns, property, location, market data, brand, team, and tax advantages.
Download Pitch Deck (PDF)One-Page Investment Summary
A concise tear sheet with key deal metrics, return projections, and investment terms — ideal for a quick overview.
Download Summary (PDF)