Starting today, the 24/7 population of downtown Minneapolis will get a little bigger. The first wave of residents is moving into the Nic on Fifth apartment building, a 26-story tower at the corner of Nicollet Mall and 5th St. where rents range from $1,300 for an “alcove” unit to about $2,900 a month. Penthouses rents start at $3,500 a month.
A representative for the company said the building is 40 percent pre-leased, and nearly everyone who’s moving in signed up sight-unseen. At this point, about 60 percent of those renters are baby boomers.
The building has 20,000 square feet of street and skyway level retail space and 30,000 square feet of indoor and outdoor amenities on the sixth floor, including a garden roof deck with pool and spa, a rooftop dog run and fitness and yoga studios. No retail tenants have been announced.
The Nic is just one of several significant downtown buildings opening this fall. The first residents moved into Vélo, another Opus project, on July 15. And on Aug. 2, the first residents of the 36-story LPM Apartments tower on the edge of Loring Park started unpacking.
Across town near the University of Minnesota campus, Opus recently completed the Venue at Dinkytown, Opus’ third mixed-use student housing project since 2012. The 246-bed, luxury student housing project is 97 percent leased. Starbucks, Great Clips and Gina+Will, a new concept clothing store from Goodwill, are on the main level.
The housing market in the Twin Cities continues to adjust to growing declines in foreclosure listings, according to a monthly report released this morning by the Minneapolis Area Association of Realtors. With fewer investors chasing foreclosures, there were 5,291 closings in the Twin Cities last month, a 7.3 percent decline compared with last yearAnd with fewer heavily discounted homes being sold and more traditional buyers on the hunt, the median price of those sales increased 5.3 percent to $219,001. That was the 30th consecutive year-over-year increase and the highest August median sales price since 2007. Here's a look at what happened during the month:
We'll have a full story in the Friday paper.
- Jim Buchta
Cash sales made up 33 percent of all U.S. home sales during June 2014, the lowest share since September 2008 and down from 36.3 percent last year at this time, according to a monthly survey by CoreLogic.
Cash sales peaked in January 2011 when all-cash deals represented 46.2 percent of all sales. Such deals have been falling, however, since January 2013. Prior to the housing crisis, cash sales accounted for just an average of 25 percent of all sales.
In Minnesota, buyers paid cash in 24 percent of all deals. Here's a look at where cash sale were most common:
A cooling housing recovery hasn't made it any easier to find a spot to build a house in the Twin Cities. In fact, lot inventory is at the lowest level since since early 2007, according to a 2nd-quarter survey from the Twin Cities office of Metrostudy, a national real estate research company. There are now 20,690 vacant developed lots throughout the seven-county metro, 7.9 percent fewer than last year.
In his report, Chris Huecksteadt, regional director of Metrostudy’s Minneapolis/St. Paul region, explains it this way: “The recent increase in new home demand has created a run on desirable vacant developed lots throughout the metro region. Lot supplies across the metro area are down to just 25.6 months, below pre-housing boom figures. As activity continues to increase we will need to see substantial lot deliveries across the metro in order to meet current demand."
Other hightlights from the report:
A Chicago/Milwaukee development duo is planning to convert the historic Jackson Building in the North Loop neighborhood in Minneapolis into a 120-room hotel with a restaurant/bar aimed at creating "an enclave for locals and appeal to travelers in search of an authentic, one-of-one Minneapolis experience."
The yet-to-be-named hotel could become only the second hotel in the North Loop is and is slated to be developed by a joint venture ( "300 Washington Avenue LLC") between Milwaukee-based Fe Equus Development, which developed the Iron Horse Hotel in Milwaukee, and the Aparium Hotel Group of Chicago, which will manage the hotel and restaurant/bar.
The dark red brick building has been a fortress-like presence at the bustling corner of Washington and Third Avenues since the very late 1800s and was at one time a farm implement showroom and warehouse. Even as the warehouses around it have been redeveloped, the five-story building has been vacant for years. Wayzata Partners was the most recent owner of the building, but their attempts to convert the building into 70 market-rate rental apartments failed and the building went back to the bank.
The 300 Washington Avenue LLC bought the 93,000 square-foot building at the end of July from MinnWest Bank for $4.6 million and is working with Twin Cities-based ESG Architects on plans for the conversion.To finance the project, the group plans to apply for historic tax credits, and says they've lined up a lender to finance construction. Plans have yet to be submitted to the city, but construction is expected to begin next year in time for a 2016 opening.