Survival of the Finest

April 2007 Special Sections

Despite alarmist reports in some local media of a softening loft and condo market, the wave of baby boomers that are downsizing for downtown has just begun. Young professionals are still trading in yard work and long commutes for the excitement of urban living. “2006 was a year of slower activity than what it was in the past, but it’s not as dismal as it looks,” says Alexis Biondich Butterfield of Coldwell Banker Burnet in Minneapolis. “Buyers were taking their time and making decisions, but we’re already seeing people who were first looking in July of 2006 realize that their hesitance has not really been warranted.”

According to Biondich Butterfield, there’s still a demand for multiunit housing, but the climate is different. We asked a few developers who have weathered the current market about what buyers are seeking now—in this postfrenzy period of urban condo real estate.

It’s Still About Location
There’s no two ways about it: Developers in the best locations generally boast the steadiest sales. Whether it’s the lakes, the river, or a retail and dining locus, location counts. “We have the lake, the parklands, and views of uptown and downtown,” says Tony Kriha of Lander Group urban development, the developers of 2626 West Lake (a sleek, modern residence on the shores of Lake Calhoun). “Our buyers are energized by our sites—the arts, culture, bars, restaurants, and everything else they need. It’s all right at their doorstep.”

The Bancroft luxury condominiums in Edina also benefit from a prime location at the crossroads of 50th Street and France Avenue. “The Bancroft is well-situated because of its proximity to shopping, neighbors, churches, and country clubs—and you can walk to dinner or a movie,” says Tom Lohmann of Pinehurst Properties, the Bancroft developer.

The historic St. Anthony neighborhood, located across the Hennepin Avenue bridge, gives residents all that downtown has to offer—including the new Guthrie and its surrounding restaurants—without having to live right inside the hustle and bustle.  Phoenix on the River, a new condo development by Schafer Richardson, has a modern exterior and a classic interior that fits right into the friendly, village-like neighborhood. “The University of Minnesota is just nine blocks to the south and [Phoenix on the River] is also very convenient for anybody working downtown,” says Joanne Henry of Henry Schafer Partners.

Another riverside property in a coveted historic area is Shadow Falls in St. Paul’s Merriam Park neighborhood. Shadow Falls, a Wellington Management property, is conveniently situated near the storied Town & Country golf club and the shops on Grand Avenue. The two buildings that make up Shadow Falls, the Marshall and the Otis, are one block east of the Mississippi River at the Lake Street bridge. “Shadow Falls is exactly equidistant from either downtown area and less than ten minutes from the airport,” Henry says.

The Great Outdoors
When condo and loft dwellers turn in the lawn mower and rake, many also give up immediate access to the outdoors. As Lohmann points out, too many condo buyers end up with a small patio that “barely fits a hibachi and two chairs.” The Bancroft is unique in that first floor units have European-style courtyards while those on the higher floors have terraces large enough for entertaining or planting. “The Bancroft’s courtyards make our streetscape a lot more friendly,” Lohmann says. “We have sold some of our first floor units to people with pets, and they can walk right out to the lakes.” Access to outdoor activities without having to get in a car is important to many of today’s urban condo dwellers. Shadow Falls is near walking and biking trails along West River Road, and Phoenix on the River is a stone’s throw from the St. Anthony Falls Heritage Trail and within walking distance of several parks.

When extreme Minnesota cold hits and prevents otherwise active residents from venturing out, the next best thing is watching the lakes and wintry landscapes from the comfort of the cozy indoors. At 2626 West Lake, the windows are so large that panoramas of Lake Calhoun will act as living artwork within each home. “We have worked with ESG architects to make views from all sides, culminating in four buildings with four sides of glass,” Kriha says.

Variety Is the Spice
“What is desirable to one person may not be to another,” Biondich says. “So the variety of location and amenities has actually helped the market—because there’s something for everyone.” Variety also means having the flexibility to make the interior of your condo unique to your needs and lifestyle. At Shadow Falls, residents can choose from existing floor plans and finishes or they can start fresh. “Some of the units can be purchased with structural walls only, and residents can work with our dream team of architects, construction and interior designers to customize their space and help make decisions,” says Henry. “There are a number of people who haven’t been able to customize their earlier homes, and now they want to buy a condo and make it theirs.” The ability to customize units is also an attractive option at 2626 West Lake. “We are offering white box shell, which is essentially like buying a lakeside lot, and then clients can work with our custom build-out program,” Kriha says.

While The Bancroft has traditional architecture—decorative molding, French windows, and nail-down floors as just some of the standard features—it offers the same kind of flexibility found in contemporary condos. “We have all different kinds of floor plans that people can choose from,” Lohmann says. “You can have a more traditional space where the kitchen is closed off from the living area for those who do a lot of entertaining and might use a caterer or, if that is not your lifestyle, you could open the kitchen up to the living room.”

For some, flexibility means not giving up some of the activities they were able to enjoy in their single-family homes. Phoenix on the River offers large terraces for outdoor living, a potting shed in the building, a woodshop, and temperature-controlled wine storage. Units have operable windows, unique craftsmanship and trims, and soaking tubs—features more commonly associated with single-family homes than with condos.

Looking to the Future
In a world where hybrid cars are selling faster than auto manufacturers can make them, it’s no surprise that more and more people are interested in construction that minimizes environmental impact. Many prospective buyers are seeking green construction, which uses recycled and sustainable materials to create healthier indoor and outdoor environments.

Lander Group has received many accolades for its forward-thinking green construction on projects such as the Midtown Lofts in Uptown. The Lander Group will continue this tradition with 2626 West Lake. “We recycled as many of the interior elements as possible from other buildings,” Kriha says. “And there’s a storm water management tank at 2626, so water will be filtered before entering the lake system.”

The developers of The Bancroft were also concerned with being respectful of nearby waterways. The  central courtyard will incorporate “green roof” technology, which essentially works like an underground sponge to soak up rainwater and release it slowly, preventing street flooding or silt runoff.

Sustainable construction is one of many ways the most successful condo and loft developers are looking toward tomorrow. Market fluctuations may be a part of the game, but there’s no end in sight for living well in a great location with urban amenities just outside the front door.