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Bank-owned land for sale in south suburbs
The still-rocky economy continues to put property into the hands of lenders, who have to try to get rid of it.
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Commercial real estate brokers continue to get listings for distressed properties that have been taken over by lenders.
The Twin Cities office of CB Richard Ellis recently picked up listings for two bank-owned properties in the south suburbs where development had been approved for the sites.
One is a 27-acre site in Apple Valley acquired for $3 million in 2007 by an entity connected to Hub Management of Mahtomedi. The site, near the intersection of Cedar Avenue and County Road 42, is on the market for $2.2 million.
In 2007 the city approved a development proposed by Hub that was to include five buildings totaling about 250,000 square feet. Nothing was ever built, and representatives of Hub said the principals that were involved with the project are no longer with the company. Ownership of the property transferred in June to Apple Valley-based Regional Properties Inc.
The other lender-owned site is in Burnsville and includes nine parcels where a multifamily project with 63 units was to be built. Representatives of the property's former owner, River Valley Commons of Lakeville, could not be reached for comment.
The site at the intersection of Parkwood Drive and E. 122nd St. is being marketed for about $2.1 million on behalf of Minnwest Bank.
Construction stays weak
A tight credit market and weak economy continue to hamper commercial construction projects here and across the nation.
The latest figures from Chicago-based McGraw-Hill Construction, a widely read barometer of industry conditions, show a 28 percent decline in the dollar value of nonresidential construction in Minnesota through the end of September compared with the same period in 2008. The decline for the Twin Cities area was even more substantial -- 49 percent from the same period last year.
The value of nonresidential construction nationwide was down 37 percent through the end of September compared with the same period in 2008.
Earlier this month, McGraw-Hill said it expects declines in commercial and manufacturing building to continue next year and be partly offset by gains in housing and public works construction. The improvement in housing in 2010 will mostly result from favorable comparisons against sluggish activity this year. The biggest improvement will be in single-family housing, McGraw-Hill said.
The dollar value of commercial construction is expected to drop by about 4 percent in 2010, following a steep decline of 43 percent this year. The weak employment picture will continue to depress occupancies next year, making it difficult to justify new construction, McGraw-Hill said.
Public works construction, fueled by economic stimulus funds, is expected to rise 14 percent.
Susan Feyder • 612-673-1723
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