The top resource for Minneapolis Urban Real Estate
Find Minneapolis lofts and condos on this easy to use siteEye opening experience with Condo Association Dues!
So I have been working with a client for the past few weeks checking out various condo projects in Minneapolis. My client has lived in Uptown for quite some time now in a older brownstone. When we first started looking she was after the whole exposed brickwork and raw space look. Living in more of a raw space myself I could understand her rational on this value. However as we started to narrow things down a bit a something jumped out that I have seen time and time again: Association Dues vary significantly from project to project depending on a number of factors involved.
Her top pick was a condo in the North Loop that had been around for quite some time–in fact it was one of the first conversions in the city from an old factory to lofts. This particular unit had been kept up very well. She loved the exposed brick and ductwork. The views of the river were also fantastic–however here’s the clincher: parking was not included and the dues, parking and electric for a 1 bedroom unit ran close to $600/month! How can that be you ask? Well there’s a few reasons: the age of the building can dictate the costs involved to keep it maintained. This building had an older roof and windows that were going on 20 years old–because of this the Homeowners Association was building up reserve funds to pay for these capital improvements to the building. Also in this particular situation the parking was not owned rather it was rented. Some of the early oversight by developers of the late 80’s and early 90’s was not to include parking within the structure in hopes to keep the pricing of the units reasonable for buyers. In hindsight they didn’t realize how the density of the city would someday require enclosed parking for most all condo units.My clients second choice: a relatively new condo in the same area with similar square footage. The reason? Dues on a newer building were a fraction of the conversion’s dues, parking was included as well as Warranties from the developer (more on that next time). After sitting down and going over the numbers of both options it became clear which made more dollar$ and sen$e and she is now a happy condo owner!
Working with the right Real Estate Agent!
In the Minneapolis/St Paul market there are thousands of agents out there working with buyers and sellers. Many of the agents sell all sorts of Real Estate-however few focus on a particular niche of the market and stick to it.
As one of the top real estate agents in downtown Minneapolis, Ben Ganje has been involved with numerous condominium projects in the past and is currently selling the Flour Sack Flats and working with other buyers and sellers in the market.
Unlike a typical single family home, condominiums have a completely different set of details to understand and having an agent that can explain these and interpret them to your advantage is for a successful buying or selling experience. If you are thinking of looking to buy or sell it may be a good idea to have a conversation with Ben about your next step in the Urban Life!
Restaurants, Condos & Parks brewing along the Minneapolis Riverfront!
In the past few months there has been a slew of restaurants that have opened along the Minneapolis Riverfront in Northeast Minneapolis as well as completion of the latest condo projects: Cobalt, Flour Sack Flats and the full on construction of the Phoenix on the River and most importantly the latest in a series of new parks to the Riverfront: Water Power Park on Main St SE.
The latest restaurants include Picosa on Main St SE next to some of the well dining joints along the river such as Vics, Tuggs and Pracna on Main. Picosa features a casual latino dining experience and begins serving lunch and stays open well into the night. From the outdoor seating the views of the riverfront and Minneapolis are flawless.
The Brass Rotisserie about 6 blocks north of the river on 528 University Ave and opened yesterday (6/27.) Owner/Chef Alex Roberts of Restaurant Alma–is going for a casual Carribean style menu featuring rotisserie chicken and slow-roasted pork with side dishes of grits, rice, beans and sweet potatoes.
Kim Bartmann owner of the Bryant Lake Bowl in Uptown is also opening her third eatery in Northeast called The Red Stag –a Northwoods style supper club with a green twist. The Red Stag will be the first restaurant in the state built to meet the standards of Leadership in Energy and Environmental Design (LEED), the national standard for green building.
Two weeks ago during the Stone Arch festival another park in St Anthony Main was opened: Water Power Park. The park which connects St Anthony to Hennepin Island via a walking bridge gives visitors close-up views of the falls as well as an amazing view of the city.
Keeping in mind future re-sale value
Mention real estate to anyone these days and chances are good that a friend of a friend always happens to know someone in the industry. However as the urban markets resume their regular ebb and flow from the boom years one thing is becoming quite clear: working with an agent that sells exclusively in condos and lofts versus the jack of all trades agent is essential if you want to find the right product at the right price with the best re-sale value in the future.
Buying a condo versus a house is a completely different transaction that involves understanding the dynamics of a different set of rules. The of the biggest issues that is now just starting to creep up is the future re-sale value. In the past and even under the current market conditions many buyers are drawn towards “incentives” and “special discounts” offered by certain condo projects to appeal to buyers. Usually buyers get fixated on these and fail to see the bigger picture that arises further down the road: selling your condo for more than you paid for it originally. Because of the fact that the condo market is still in its infant stages in Minneapolis and St Paul buyers are not always clear about this or it may not even be a value to some. The fact of the matter is that you may be able to get a great deal on a “discounted” condo in the city however if you not able to sell in the future based on a number of variable it really doesn’t matter how great the initial deal really is. In order to curb a scenario like this working with an agent who understands the dynamics of the downtown market is a must. If you don’t have an agent yet and would like to sit down to discuss some options feel free to contact me.
The Big Dilemma: Minneapolis or St Paul?
Okay, so you have begun the google search for your next move when you start seeing some significant pricing differences between listings in Minneapolis and those in St Paul. Case in point: the typical 1000 square foot condo in St Paul sells on average for 180k however that same condo in Minneapolis sells for a whooping 230k! Yikes! Why such a difference in price you ask? The answer has always been the same: LOCATION, Location, location!
The next question that buyers almost always ask me is: So which city should I really be investing in? Minneapolis or St Paul? The answer is it really depends on a number of fundamental buying questions you need to be asking yourself.
The first question you need to ask yourself is: what is my true motivation for going urban? Is it merely wanting to have a shorter commute to work every day? Or is it because you want easy access to all the restaurants and cafes the city has to offer? Or are you just short for spare time and looking to avoid those maintenance related issues if you took the house option in lieu of a condo. I think these are all good and rational points to be had. However depending on how you answer this could determine which city makes the most sense. If you happen to work for a company such as Lawson Software its logical to think St Paul. However its Minneapolis that has plenty of restaurants and cafes to keep anyone busy trying new eats all the time.
The root of this discussion comes down to two different paradigms buyers fall into one way or another. One rational is that because pricing in St Paul runs a bit lower I can get more condo for my money. The other rational is to buy in Minneapolis with the understanding that you are paying a premium for the area and more importantly the lifestyle that goes along with it. Minneapolis has a fair amount of condos relative to St Paul. Minneapolis has plenty of infrastructure for many residents to work and live downtown without running out the to burbs for much. On the price spectrum Minneapolis does have many more higher-bracket condos which influence median prices as well. Looking at past data as well Minneapolis has done better for appreciation than St Paul on any price point. So ultimately if you do buy in Minneapolis there is a premium paid however you are buying in a more desirable area the long term appreciation should offset the premium.
The Master Plan of Saint Anthony Main
It seems like only a few months ago we finally had our first urban grocery just across the River from downtown in Northeast Minneapolis. Since then the area has seen quite a uptick in traffic both in cars and pedestrians but it’s been a long time coming.
Once known as a heavy industrial working-class area from the early 1900s till only recently in the 80s when developers started seeing the potential that laid ahead as the exodus of the milling era was abandoning the riverfront. Since then the area has slowly developed all types of residential and commercial projects, most notably of recent addition would be the Lund’s Grocer that opened in the Cobalt Condominiums building off University and Central Ave.
In recent years attention has focused in terms of development on the strip of Riverfront nestled between Northeast and the University of Minnesota East Bank campus called “Saint Anthony Main”. This is the last frontier of area along the riverfront in Minneapolis to develop and already plans have started to clearly take shape. In the 80s this area was the place to be as recent apartments such as the Falls/Pinnacle and condominium projects LaRive and Winslow House had lured tenents and owners alike out of the burbs and into downtown Minneapolis. Riverplace was built along Main Street that housed numerous cafes and restaurants that are still in existence today. There are a cluster of condominium projects now on the market in the area: Phoenix on the River, The Flour Sack Flats and Cobalt Condominiums. Despite the apparent housing glut on the metrowide level this micro market has seen fantastic sales results of pre-construction sales as well as resales in the area and the momentum doesnt look to be slowing anytime soon.
What are the significant drivers of buyers coming to this area of Minneapolis?
There are a number of reasons why this area has been well-received by the real estate market. First and foremost the location is ideal as St Anthoy Main is set directly across the Mississippi River from downtown giving anyone proximity and amazing views of the city. Being along the Riverfront also gives access to some of the main trails running through the city as well as parks complete with the Stone Arch Bridge connecting the area to Downtown Minneapolis. Having the river separating the area from downtown also gives St Anthony Main a more tight-knit, neighborhood feel. During the summer the area plays host to a number of Riverfront events ranging from fireworks displays to weekend art fairs in the parks. The spectrum of residents living in the area varies from large collection of empty nesters that take advantage of the local ammenities to young urban professionals that see the excitement of living downtown but want more of a low-profile neighborhood feel. A fair amount of residents are students and teachers of the University of Minnesota as well given the fact that the college is blocks away.
