RAPID CITY, S.D. — A long-vacant corner in the heart of Rapid City is getting a major facelift. The former Albertsons—and later Family Thrift Center—at 855 Omaha Street is being transformed by Dream Design International, a local development firm with deep roots in the Black Hills.
The 45,000-square-foot structure has sat empty since 2017, but now, thanks to strong community input and months of planning, the high-profile intersection at Omaha Street and Mount Rushmore Road is poised to become a new hub of activity.
Planned Tenants Reflect Community Needs
Dream Design confirmed it has secured letters of intent or leases from four national brands: a grocery store, two food-service establishments, and a retail outlet. In addition, talks are ongoing with two fitness or athletic-focused businesses.
“From the start, our goal has been to listen to the people of Rapid City,” said a Dream Design spokesperson. “They told us what they want—a walkable grocery option downtown, more restaurants, and places to stay active. That’s exactly what we’re building toward.”
Major Structural Changes Underway
Redevelopment is already in progress. Crews are removing approximately 30 feet of exterior wall space from the east, south, and west sides of the building to enhance access and modernize the structure. The north wall—facing Omaha Street—will remain intact. This demolition phase is expected to wrap up by November 2025.
Architectural renderings and finalized floor plans are anticipated to be released later this summer, offering the first public look at what the revitalized space will become. Signage revealing the specific tenants will follow.
Downtown Revival and Traffic Improvements
Beyond reactivating the empty storefront, the project also includes collaboration with South Dakota transportation officials to improve safety and access at the busy Omaha and Mount Rushmore intersection. This gateway corner is seen as a key location for drawing both foot traffic and future development downtown.
The project aligns with broader efforts to enhance livability and economic activity in downtown Rapid City and across the Black Hills region.
Rumors and Speculation Swirl
While official tenant names remain undisclosed, community speculation points to brands like Chick-fil-A and Natural Grocers. A post on the retail industry site RetailWatchers suggests a grocery tenant is already lined up for the space previously occupied by Nash Finch. Dream Design has neither confirmed nor denied these rumors.
One widely shared Reddit comment claimed: “They tried for Trader Joe’s, but that fell through.”
What’s Next
By late summer, Dream Design expects to unveil architectural renderings and initiate site signage. With demolition on track for completion by November, tenant build-outs could begin soon after—meaning grand openings may follow in late 2025 or early 2026.
As one of the most prominent intersections in Rapid City, this redevelopment project is being watched closely by both residents and local business leaders. It represents not just a transformation of a vacant building, but a revitalization of downtown Rapid City’s commercial landscape.
