By the end of 2007, Downtown Minneapolis will have nearly 100 condo, loft, and townhome developments – in addition to the many (& growing) rental apartment buildings. In the past few years we’ve seen over 60 new condo building completed, including conversions from apartments, renovated warehouses, and from-the-ground-up newly built.

Winners in 2007:  
Bridgewater (Shamrock Development Co., new construction on 10th Ave South @ Washington, Mill District) was the biggest seller of the year with 99 sold homes at an average sale price of $351,000. Touting a low price-per-square-foot, the 212-unit project has sold a total of 150 homes.

Riverwest (condo conversion on 1st St South @ 5th, Mill District) has been selling well for a few years – with over 400 apartments, it’s been steady since sales began in 2005. 2007 saw 50 homes sold by the developer and an additional twelve resales – $279,000 average price.

Hershel (Swervo, warehouse renovation on North 3rd St @ 8th, North Loop) has been the site of picketing union reps and a giant inflated rat. Despite continued bad blood with the city and the unions, 28 of 47 homes sold in ‘07 with an average price of $238,000.

730 Lofts (Schafer Richardson, new construction on North 4th St, North Loop) is the third of a trilogy of SR buildings near the new ballpark. It is the tallest at 10 stories and the most architecturally compelling. Twenty-three homes sold in 2007, bringing the total to 72 of 111 – average price of $243,000.

720 Lofts (Schafer Richardson, new construction on North 4th St, North Loop) sold out in 2007.

Losers in 2007:
Mill Trace (Dolphin Development, new construction on 8th Ave in SE Mpls) had enough trouble managing their finances that they are in foreclosure. The developers blamed poor sales efforts, but agents who brought buyers know otherwise.

The Sexton (warehouse renovation, on 7th St South @ 5th, Elliot Park). Buyers & residents were disappointed to learn their parking stalls are in the to-be-built Sexton 2 – as a result 24-hr valet parking is provided (who’s paying for it?). Legal battles between development partners and other dirty laundry are hampering buyer interest in remaining units, and phase 2 is in question.

607 Washington (warehouse renovation near Mill District). What looks like massive lender fraud revealed itself this year with 22 of 30 units in foreclosure.

The Portland (proposed new construction on 2nd St South @ Portland). Showing that a well-conceived project from a reputable developer with a strong track-record in the area can hit the shelf.

From the Downtown Journal: “Peggy Lucas, co-founder of Brighton Development, said that although they sold three units worth more than $1.5 million, instability in the lending market led them to suspend plans. A Sept. 26 letter distributed to ‘Mill District Neighbor[s]‘ cited a national credit crisis.

” ‘We also think it neither fair to the neighborhood nor good business practice for us to continue to simply hold the empty parcel of land to wait for market conditions to improve,’ stated the letter.”

After selling out some of the most beautiful lofts in the city: North Star Lofts, Stone Arch Lofts, Washburn Lofts and Humboldt Lofts, we thank Brighton for their quality and commitment to the neighborhood.

Archive Lofts (warehouse conversion, 7th & Central, NE Mpls). Not much available on this one – the web site is down. Purchase Agreements are cancelled.

Small condo conversions. The oversaturated market put the skids on small apartment buildings being converted to condos. There are a few out there, but a few bad apples who gained reputations for slapping lipstick on old apartments spoiled it for the pros.

Other cancelled projects: 1010 Park, Eitel Hospital site (under construction for upscale rentals), Two Twenty Two (planed construction above the forthcoming Whole Foods at the corner of Hennepin & Washington, to be rental for future condo conversion)

The Grinders
Of the many newly completed projects (54 buildings in the past few years), some good ones are grinding out the last few homes. Quality construction and amenities keep the developers and sales efforts on track, even on those Saturday afternoons when the sales center can get a little quiet. Some of the recent quality projects grinding out the last few homes are 212 Lofts, Rock Island Lofts, Flour Sack Flats, The Groveland, Emerald Gardens, Tower Lofts, International Market Square, and Bookmen Stacks (to name a few).

The Optimists
We’re looking forward to having new homes to sell in these projects:
The Nicollet – from high-end condos to a mix of retail, office, hotel & ultra-high-end condos
The Pacific – 80 homes on the Monte Carlo block with a hotel, retail & rentals (the Monte isn’t going anywhere)
East Bank Mills - The Cooper and Warehouse2 currently in pre-sales, with Warehouse2 holding 12 reservations – the historic Pillsbury A Mill building to become beautiful lofts
1730 Clifton – luxury condos in Loring Park from a highly reputable developer
North Loop Village (Twinsville) – in and around the new ballpark: condos, rentals, hotels, shopping, offices…
The Eclipse – on the old Dolphin Staffing site, 500+ affordably-priced condos

Disclosure and small print stuff:
Some of the condo projects are listed for sale thru my employer. Numbers are taken from Regional Multiple Listing Service through November 30, 2007.

 Coming soon – “2007 By the Numbers”