New wave of real estate projects emerges near U campus

In the wake of several major development projects in and around the University of Minnesota campus, another small wave is on the way.

On Thursday, the Minneapolis Planning Commission reviewed plans for two apartment buildings and a hotel near campus. The proposals come after thousands of new apartments — most for students — hit the market and created a modest oversupply.

"Absorption has not been as strong as it had been previously," said Mary Bujold, president of Maxfield Research Group. "Some concessions have been offered to try to fill units more rapidly."

Ned Abdul wants to develop 315 apartments at 150 26th Av. SE. by repurposing two existing buildings, a 1916 brick-and-concrete warehouse and a more modern steel factory. He'd like to build rooftop additions to both buildings and connect them to one another with an addition.

Separately, Tim Harmsen of Dinkytown Rentals wants to build a four-story, 33-unit building at 721 and 729 8th St. SE. The building would replace an existing two-story single-family house that's in disrepair. The project would include 20 parking spaces on an adjacent surface lot.

Larry Prinds, who is on a land-use committee and the board of directors for the Marcy-Holmes Neighborhood Association, said the group supports that plan in part because it promised to offer a more affordable alternative to much of the student housing that's already been built.

The leasing up of apartments around the campus has slowed, Prinds also said, noting that five rental properties in his neighborhood have for-rent signs on the lawn. "That's one of the unintended consequences of this development," he said. "It's draining off renters from the smaller rental-property owners."

One of the most ambitious proposals on the docket comes from CPM Development, which wants to build a five-story, 140-room hotel with a main-floor restaurant and second-floor banquet facility at 501 Huron Blvd. and 2510 Essex St. SE. The project would include 83 off-street parking spaces.

Last year, CPM received approval for a similar hotel project on a nearby parcel, but didn't proceed.

If this latest proposal is approved, the original site would be sold to the U for future development.

CPM's Daniel Oberpriller said the company, which will bring 1,600 to 1,700 bedrooms to market this year, is holding off on proposals for more student housing. "Everyone is still waiting to see how everything leases up before diving into more projects," he said.

Jim Buchta • 612-673-7376