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twincities.bizjournals.com THE BUSINESS JOURNAl. June 21, 2002 31 rents we have to charge, we have to make the interiors of our units much more simi- lar to a single-fanfily home, improving the quality of the cabinetry, granite counter- tops, improving the qnality of the wood trim, the size of the units. Pollock: A lot of this got started in other parts of the country Sunbelt cities have been building 9-foot ceilings for seven to 10 years. The tutu of the century brought about a new level of presentation to the high-end renten Where are the projects going on? Brm~dt: We have two St. Paul suburban locations. In Oakdale we're doing a 31-acre mixed-use development with perhaps a senior component as well as general occu- pancy componeut. And we have a project in Maplewood that's a very large 80-acre site: general occupancy apartments in a row-home format, assisted liviug and sen- ior housing as well. Pollock: Look along the fl~eeway systems, like 35W to the south. Lakeville and Apple Valley continue to add nnits. Looking to the northwest, we've seen some additions to the supply. In Maple Grove there are more than 1,000 units under construction and that city delivered almost 500 units in the last 12 months. We've seen in the past Woodbury to the east, again along the flee- "The expectations of cities have changed dramatically. The market and cities require much more attractive product." JACK BRANDT way system -- the first paths of growth to the outer reaches. In infill, it's at or around a ring road -- Eden Prairie, Chaska, Chanhassen, have experienced significant additions, too, and Savage/Shakopee to a different degree. We're working on a large project with Pratt Homes, the Apache Plaza redevelop- ment in St. Anthony What are the barriers to more growth? Brandt: Certainly cities m'e uot coming for- wm-d to developers, in my estimation, m~d suggesting there's a mtfltitude of multffami- Small ]uvestment...Big Return Subscribe now - twincities.bizjournals.com or call 612.288.2100. ]]-IE BIJSINESS JOIJRNAL ly sites they want to develop. It's an individ- ual, isolated situation. You still have the same difficulty with a protracted approval process, at a minhnum eight or nine months, and that's on a good project. On some proj- ects that are difficult it can take well in excess of a year by the time you're tlwough the approvals and agremnents m~d so forth. Brachman: In the last six months, banks have gotten more couservative. They're taking a harder look at the numbers and they're not as aggressive as they were. It is more dffficnlt to finance a project today than six months ago. Pollock: Low interest rates affect renters in the market. They're the people who leave and opt for owner-occupied housing, buying their first home. Everyon'e in this room would say the biggest competition for the renter today is home ownership more than anything else. I've heard cases where more than 90 percent of move-outs are to home purchases. The same low interest rates that help the feasibility of a project are helping the renters who might become first-fime buyers. Frank Jossi is a freeqance writer based in St Paul. Log onto twincities.bizjournals.com to receive a page of local business news headlines emailed to you once a day. Breaking lines sent daily via email A free Business Journal reader service. THE BUSINESS JOURNAL twincities.bizjournals, com INDEPENDENT THINKING,,, St. Anthony Park Bank Rick Beeson, President Direct Dial: 651-523-7830 2265 Como Avenue, St. Paul 217l University Avenue, St. Paul www.park-bank.com Franklin Bank Dorothy Bridges, President Direct Dial: 6i2-874-4318 525 Washington Ave. N., Minneapolis 2100 Blaisdell Ave, Minneapolis Highway 55 & 494, Plymouth ww w. franklinbank mpls.com University Bank David Reiling, President Direct DiaL: 651-265~5627 200 University Avenue West, St. Paul w ww.universitybank.com~ 3lemher FDIC ~ Equal OpportmuO, Employer ~w,t ,ous,.o LENDER