Dakota Cowboy Inn given new life as apartments

Many times when someone purchases a building, they give it a facelift.
As for the Ponderosa Apartments? It received a facelift, triple bypass, appendectomy, heart transplant and facial reconstruction.
Yes, the property formerly known as the Dakota Cowboy Inn needed a little more than a fresh coat of paint. Luckily, Tom Iverson and Daniela Malcoci of Link Investment Group were up to the challenge.
“It was a big project. We did a full gut, rehab of the building,” Iverson said. “All of the plumbing, all of the electrical. Everything you can see and touch on this building is brand new.”
All the way down to the studs?
“We even replaced the studs in many places,” Iverson said with a laugh.
The only thing remaining that is original on the main building—the one that sits on Mt. Rushmore Road—is the foundation and roof trusses.
The end result is 29 new apartments for lease in Custer, ranging from studio size that check in around 300 square-feet to up to two bedroom units that are 840 square-feet. Yes, Link took out walls in some of the motel rooms to create larger units, with every unit regardless of size thoughtfully created with affordable housing in mind. In a city where those who work for the school, county, city etc., have trouble finding a place to live, Ponderosa Apartments can provide the exact type of housing needed for people to stay in Custer, establish roots and even raise a family.
“As an investor I think of return on impact instead of focusing solely on return on investment,” Iverson said. “We are looking for projects (where) we can create a huge impact in our communities.”
Iverson said he and Malcoci have heard stories about employers in Hot Springs, Custer and other towns not being able to find employees due to a lack of available housing and it is something they took personally.
The offices of Link Investment Group is located on site of the newly-renovated building, and was founded in 2021 in Hot Springs. Most of the company’s portfolio is in Hot Springs, but the two are now expanding to other parts of the Black Hills, and possibly even adjacent states.
“I’ve always been really curious about real estate and always been interested in investing,” Iverson said.
Iverson was in insurance for around six years, but during that time got to know real estate agents and investors and studied what they did and how they did it. He can recall watching Bob Villa walk into a run down property in “This Old House” and give it new life.
“I love the process, being able to look at something that is underperforming, underutilized and making it beautiful and function for the community again,” he said.
If he loves the process, there was a whole lot to love about the former Dakota Cowboy.
The two bought the property in 2022, and ran it as seasonal employee housing for a few years, shutting it down in October each year because it wasn’t able to function in the winter.
Then, the work started. And boy, was it work.
“I would say it had one foot in the grave and we pulled it right back out,” Iverson said. “It’s a tremendous amount of work. You think it’s a lot, then you double that.”
“A lot to bring you a lot of gray hair in your mid-30s,” Malcoci said with a laugh.
The second building, known as building two, is 16 units and sits further off Mt. Rushmore Road, and it was built in 1990. It didn’t see the renovations the main building saw, and will primarily be used to continue to house seasonal workers.
Iverson said it’s important to note that Ponderosa Apartments is not subsidized housing, but rather, is offered at market rate.
In Hot Springs they did the same thing with The Lodge, as well as Mesa Flats. The latter was a tired building that needed full rehabilitation. Today, it is completely full.
At Ponderosa Apartments, Iverson knows when people hear of a motel being renovated to apartments they immediately think of tiny rooms with small kitchenettes slapped inside or no kitchen at all. Both he and Malcoci were insistent that not be the case.
No, these are far from the typical basic motel rooms, as there are eight one-bedroom apartments, six two-bedroom and the balance is studios. They all have full kitchens with stainless appliances, quartz countertops and a modern look and feel.
There is on-site laundry at the complex (for which you can pay digitally so you don’t have to have a bag of quarters), a fitness center and even many of the studios have dishwashers installed. There is also a common area outside for tenants to hang out and enjoy the day.
“We are able to take our experience from the other (conversions) and really make sure this, when you walk in, you don’t say this was a conversion,” Malcoci said. “I am happiest with the results on this one.”
“We really wanted to make sure this was something that was going to be a true and honest apartment, and we think we delivered on that with this project,” Iverson said. “I can confidently say this is probably the best motel-to-apartment conversion that’s been done that we have seen in the Black Hills.”
And it’s not totally done. 
The parking lot will be paved in the near future, and they are also looking into partnering with an entrepeneur to develop some type of food and beverage kiosk at the corner of Hw. 16/385.
Ponderosa Apartments recently received its certificate of occupancy for the apartments, and as such, is now beginning to welcome people home. There are move-in special rates available, ranging from $925 to $1,600 per month, depending upon the size of apartment the person moving in seeks. Best of all, that rate includes all utilities—including electricity, water, garbage and WiFi. Lease length can be negotiated.
Paying rent couldn’t be easier. Tenants can sign their lease digitally, and will pay rent through an app.
“We take pride in making the process of moving in, moving out and renting very convenient,” Malcoci said.
Anyone interested in learning more can do so by viewing the apartments, located at 208 Mt. Rushmore Rd., at linkcom
panies.org.
“I’m proud to drive by and see how much this property has changed,” Malcoci said. “Making a meaningful impact on the community was always the goal and I hope this building relfects that.”