REED Approves $900,000 Loan to Help Purchase Orchard Square Apartments in Yankton, South Dakota

The Orchard Square Apartments in Yankton, South Dakota, have new ownership thanks, in part, to a loan from the Rural Electric Economic Development, Inc. (REED) fund. A $900,000 loan covered half of the purchase price of the apartments, allowing Jason Orr to take over as the new owner.  

“The apartments had been for sale for a while but didn’t have any buyers,” says Orr. “My lender was struggling to make the numbers work, but then I heard about the REED fund. Their favorable interest rates made financing possible.”

Orr has plans to improve the 60-unit housing complex and has already increased the tenancy rates. When he originally purchased the Orchard Square Apartments, there were 21 vacant units. Within two months, they were at full capacity. Read more about the project and the benefits of investing in housing. 

Orr is Bringing Affordable, Desirable Apartments to Yankton

Orchard Square Apartments provide subsidized Section 8 housing to Yankton residents. Their presence increases the housing inventory in the community while offering tenants a nice place to live. Orr says he has already made improvements to the apartments by replacing the floor and painting in the vacated units. Currently, every unit has a window air conditioning unit. He plans to expand the heating and cooling systems to provide better climate control to renters.  

“I’ve been hungry to get into the multi-family space,” says Orr. “This is the biggest project I have taken on yet.” 

The Process of Applying for a REED Loan Was Easy

Orr also has good things to say about working with the REED fund and applying for a loan. Because he was already working with another lender, he had the documents to share with REED’s underwriting team.

“I had already been stress tested by the local lender, so we knew how to make the REED loan work,” says Orr. “Angie at REED worked quickly, which allowed us to close the deal quickly.” Orr also worked alongside his local electric cooperative while applying for the REED Fund loan.

"The Bon Homme Yankton Electric Board fully endorsed Orr’s acquisition of the Orchard Square Apartments and promptly forwarded his application to the REED Board for final approval,” says Stephanie Horst, General Manager at Bon Homme Yankton Electric. 

Housing is a Challenge Across the United States

Communities of all sizes are having a hard time providing housing opportunities to residents. Experts estimate a shortage of 1.5 to 5.5 million homes in the United States. South Dakota isn’t exempt from this trend. The state is short more than 14,000 affordable rental homes to support low-income earners. The majority of those renters are either actively in the workforce (34%), seniors (33%), or people with disabilities (18%).      

While Orr’s renovations and changes to Orchard Square Apartments won’t solve the housing shortage, they will improve the lives of Yankton residents who live there.

"As a REED Board Member, it's incredibly rewarding to see essential housing projects like this, knowing that the REED Fund plays a vital role in strengthening our local communities,” says Horst.

Orr and Other Community Leaders Make Yankton a Better Place

Orr has lived in Yankton his whole life and plans to stay there forever. He enjoys the people and the slower pace of life that comes with a rural community. Yankton has a population of 15,630.

Despite his love for Yankton, Orr sees opportunities in the area. He says he doesn’t want to live in a highly populated city, but growth is a good thing. “I think we can improve our amenities and entertainment,” he says.

With more housing options, more people can move to Yankton and stay there. Entrepreneurs, job creators, and business leaders can feel inspired by the community. This will increase the amenities, restaurants, and options in the area in the future.  

Learn More About REED Projects

REED issues a variety of loans throughout the year, supporting housing projects, business investment, and quality of life improvements. Read about its latest projects and how they support economic development across South Dakota communities. You can also request an application if you would like to work with the REED fund to secure financing for a project. Your community’s future starts with REED.