|
30 June 21, 2002 THE BUSINESS JOURNAL Cnttttt'a e ciag Rea;Estate
<br /> twincities.bizjournals.com
<br /> Et BO ,.? D ' :u L , Z;ry SUBURBAN G
<br /> Cities demand new vision
<br /> BY FRANK JOSSI ROUNDTABLE
<br /> CONTRIBUTING WRITER
<br /> * " ' t t�»]�����" �;,w You really have to have a city participate
<br /> with TIF and any other soft money that
<br /> The typical vision of the suburbs as end John (Jack) Brandt,president of The Hartford Group Inc., Edina,has been might be available.
<br /> less streets of single-family homes has a , developing multifamily and mixed-use projects for over zo years,including The
<br /> undergone a radical transformation over the I Regent at Plymouth,The Regent at Burnsville,The Legacy Village at Apple Valley Pollock:Cities need to be involved because
<br /> past decade.In the sprawling Twin Cities i" } r and mixed-use developments in Maplewood and Oakdale.
<br /> they are also requiring developers to add a
<br /> metro area,suburban multifamily housing mixed-use component to these projects.
<br /> such as townhouses and apartments have R Armand Brachman,principal of Dominium Development&Acquisition, They all want first floor retail,depending
<br /> risen in greater numbers,than ever before as 1 Plymouth,handles new project work for Dominium,the largest privately held
<br /> owner/operator of multifamil housing in Minnesota. He joined the firm in i on the location,for example,and in order
<br /> t.a Y g 1 979•
<br /> land for development dwindles.
<br /> I to make projects work you're going to need
<br /> The evidence can be seen from ? * ' the city's involvement in some fashion.
<br /> Woodbury to Maple Grove.With the There's also a recognition among cities
<br /> growth of multifamily housing has come �'`Qt. 4I S. Scott Pollock,vice president of investment services at Bloomington-
<br /> based United Properties,has spent 20 years in the real estate business,the last 13 that all these projects have to have an
<br /> suburban density levels in some cities that ears in investment brokerage specializing in multifamil office and retail sales. affordability component[for housing].
<br /> rival those of Minneapolis and St.Paul. a': y g P g y'
<br /> ' He has sold nearly 4,00o apartment units,half in the Twin Cities metro area.
<br /> Suburban multifamily housing develop- Why do suburban multifamily develop-
<br /> ments also are likely to have features in -_________ ments look better now than,say, 10
<br /> common with an urban neighborhood,say years ago?
<br /> panel members invited to speak on the . How would you describe the market for along with them.The vacancies that have j Brandt:The expectations of cities have
<br /> issue by The Business Journal,often with suburban housing? been reported don't necessarily tell the changed dramatically the last couple of
<br /> mixed-use development mandated by local ' Jack Brandt:The market is generally whole picture,which is the people in the ! years.We could not present a project to a
<br /> governments.Such communities,where good throughout the Twin Cities area. trenches are reporting a little higher city that we might have presented 10 or 15
<br /> retail and office mix attractively with There are pockets of problems,but long vacancy than maybe the averages reported years ago.For the most part the market
<br /> housing for everyone from singles to sen- term the prognosis is strong. I by Apartment Search and others who track and cities require much more attractive
<br /> iors,invite walking rather than driving. that information. productt—brick,stucco,higher-quality
<br /> In other words,this isn't the suburb you Armand Brachman:I would concur. external materials;Eden Prairie for sever-
<br /> may have grown up in.This is the new sub- Where the market has seen a softening in j How important is city financial support j al years has had a 75 percent-brick require-
<br /> urb,where multifamily housing is not the last three to four months has been in for your multifamily projects? ment.We present renderings of each por-
<br /> frowned upon and which,in most places, the across-the-board portfolio.Vacancies Brandt:Our firm is involved in five mixed- tion of the product and we certainly hear
<br /> isn't facing old fears about urban-style have gone up,but we're optimistic that use projects,in different stages of the i comments from staff members,mayors
<br /> development.With more than 600,000 more when the economy picks back up our occu- development process,encompassing senior and others on what they want to see in the
<br /> people expected to live in the Twin Cities panties will also go back up. housing,general occupancy housing,retail, j architectural integrity of the product.
<br /> over the next 30 years,many more resi- offices,restaurants and so forth,and in vir-
<br /> dents will be living hi suburban multifami- S.Scott Pollock:After a tremendous run tually all cases there's a TIF(tax-increment . Brachman:We're spending a lot more
<br /> ly developments. in terms of rental growth and vacancies, financing)component and any other kinds time in the unit layout and design.In the
<br /> we're seeing the market leveling off,not of assistance that might be required. past,most apartment units were fairly
<br /> unlike the other property markets— straightforward.Because of the higher
<br /> '. , ' 't 1 a` r -, ''r industrial and office.The demand side has Brachman:In order to have a successful
<br /> cooled somewhat and caused vacancies to development today,I think it is critical that
<br /> rise somewhat.We've seen the first guar- you have the participation of the local
<br /> ter-to-quarter decrease in average rent in municipality to make the numbers work.
<br /> 10 years and vacancies have decreased
<br /> yy
<br /> .. ....,.. t s,; t., ar t° . 'F v
<br /> ,4
<br /> g
<br /> i I i h„p i Ky•i NI
<br /> "y E I . r(t '',',—,„,Tit z j�3i iv i v # .,, �� a �+',�` .r it '^ „ r
<br /> •.:` 4 4 a •+ + A i a ) # a t f a A'( 'P •+,'G r y' r lr' - , ..c ad „„�.r"`' t " ; , l'''''
<br /> t � Y ■
<br /> r P t
<br /> -1),,3:-,:,?..,..t14. #�'+.} ° ,.117."r:ti Z 3`: "i�` r�` f ry}'�,, , `a' i' 1+ ').),j'`.1V i' �.,+ '*Oik-'��f:::;°'. . . a
<br /> -....}^. 1 : " },;' � LTTjti
<br /> , _
<br /> .w �, , _ . ± r v Qri. " ; " r 's‘.��f, `e t �4 Re� fr.:. , a >:. , } r t a r ,. • # '7 ' . - r �«r. e a a tl. ? ' � E4-'''-'. 11 ..
<br /> a , 7 .,, , t r 4 t, 1, .r= ♦ ti.;..,:,. i.., It,s . 3y , z �,1 '. k y �a, r ", ,„! 1. , F.t ..•
<br /> 1. .,1t „ �:� � ' f , 2 � -�t ,, , } p -` e „ R l i l %`€ E V'.;;11-,-,ma” 3 T:.. ( 1 _•_- t' +,q�i -m 's:. * . 3 k ' sd �` $��°!:P '':' " 1 , + 1 d } w°x ' r ai r yi 2 , t.it :,. a} 1 _ ',' ,; ;.41:i L, I;IG„. x g,;., - , . iYt ' ,. : ik, .# -# r- v,e,� # t I { r t.g E ” Er? p n t ,c. p ae°.e 'i$ a E,: f :iAt 4 . ,,1 a'b 4.4; .:. .f f" - n :4 + \r'' $1 ii,- `P.) t e , i ey}i ':� r' azf!� t i ic ,^. ' s t �. t 1-,21 till r .�r t`r< d s �a„'y� '$ ' ....C-,r4 . Ir a *� � J . -,I '
<br /> rk. r _' ♦ :•
<br /> 3 ...-^• -".
<br /> +r.'E
<br /> 1 . a.`.i)t,C-"k,,,..,t Y + - ,Ir S r. ,,i . ` t� -i 4. x,• � � 'r•'>.,? F w:,w,- 7 :r •++ " ,y., . sr4;° " � S
<br /> '��<
<br /> ,4it:
<br /> lt
<br /> e� , �- ":;Y g �..� a t '+�: d , ;yd�s �s° #1� E � �� r 'Y ` �� e i r eg��,, a'k a"" ff..,::,''d�a �e: r � s. 3 +,a "j :«aa .a z . ----Ls_, -� .,, ,,f � wir ► ,. t 1 •' 11 ' r Y. � y P p P aE! , r t " �z ..at ' „ � ' 44t4... i.. M ... E - g 4 B _z t t - 4. ` - ; d � 4�I `1# 11 Pr , - a t • + , t a. nJ t .c a � r a w,wr f , . , ., I r t , & , r a �' ,�.� ' ( 's4 i
<br /> '
<br /> f . ;E a i Al . k _ w., ' �. *^= ' 4L e..`. :--,: t t^ * .."'a: : :'...‘
<br /> St.Louis Park officials were tar getin g residents'wishes for multifamil y housing and a
<br /> town center with the Excelsior& project,which will feature housing above retail along with a town green.
<br /> ■
<br /> • I
<br />
|