With senior housing sales slowing to a crawl across the Twin Cities, United Properties has modified the plans for its Applewood Pointe senior cooperative community in Roseville in an effort to get the project underway, slicing it into two phases.
Type: Senior co-ops
Height: Four stories
Developer: United Properties
Details: With senior housing sales slowing to a crawl across the Twin Cities, United Properties has modified the plans for its Applewood Pointe senior cooperative community in Roseville in an effort to get the project underway, slicing it into two phases.
UP has gained approval to build a little more than half of the 95 planned units first, putting the remaining portion on hold until market conditions improve. The developer says that while interest in the co-ops remains high, it doesn't have enough solid commitments from buyers to begin work on the whole building. However, UP has indicated that a downsized facility would likely have sufficient buyer critical mass to meet federal requirements and move forward.
There are several factors at play, the company told city officials. One is that prospective senior buyers are less willing to commit to pulling the trigger in a time of economic uncertainty. Another is that the Department of Housing and Urban Development has raised its requirements for guaranteeing co-op master mortgages. In the past, HUD was willing to issue such guarantees with only a 50 percent preconstruction sales level -- but that has been raised to 70 percent, meaning a 95-unit building would need 67 presold units to proceed.
Brian Carey, a UP senior vice president of development, said 69 prospective buyers made reservations for the project, with about half of them likely to proceed with down payments, thus making a 51-unit building doable financially.
"We're still pretty excited about Langton Lake, and we feel there's enough interest to go ahead because it's got a scenic, close-in location and amenities that a lot of other senior co-ops don't have," he said. "Also, I think buyers are aware of our financial stability, so they know they'll be buying into a co-op that will be successful."
Carey said that plans now call for breaking ground on the scaled-down Applewood Pointe, UP's eighth such senior co-op, either this fall or in the spring.
Don Jacobson is a freelance writer based in St. Paul. He can be contacted at email@example.com.