815 13th Ave SE Apartments Additions

[ord2msp]

CPM proposes to renovate an existing drab multi-family residence with a series of new additions. This is an interesting reuse of the existing structure. You can find renderings, etc. in the staff report. It's located across the street from another recently completed CPM project,"The Rail" apartments.

Staff Report

This is what the existing building looks like:
https://goo.gl/maps/D1495

[twincitizen]

The existing multiple-family dwelling is 36,251 square feet in size and includes 50 dwelling units and a total of 59 bedrooms. The applicant proposes to renovate and expand the existing structure by constructing 7 separate additions
onto the north, south and east elevations totaling 4,917 square feet in size which would result in 36
additional bedrooms within the building. Upon completion, the project would maintain 50 dwelling units
but would include 95 bedrooms. In addition, another addition for a 592 square foot bicycle storage area
would be added to the north elevation of the building. The remaining portions of the existing building
would be cleaned, repaired and repainted. Other improvements to the building include all new
fiberglass windows, a new entry canopy, upgraded interior finishes and new or remodeled amenity
spaces including a club room, fitness center, study room and game room. Enhancements would be made
to the interior and exterior lighting and the security system would be upgraded with cameras.

Basically converting it from a typical 1960s 2.5-story walkup of studios and 1BRs to a more student-oriented product with multiple BRs per unit.

7 separate additions. CPM is workin' hard for the money.

As a general note about CPM, I have often wondered when/if they will sell off their long-held single-fam & duplex properties now that they are a pretty prolific property developer. They got their start buying up individual rental properties around the U and have very quickly grown into a full-blown development (CPM) and construction (Reuter-Walton) company. Have they sold off any of the student housing they've developed? If they are still holding everything they've ever developed, they either have some incredible financing connections or very deeply-pocketed silent partners. This entire paragraph is off-topic, but to bring it back around to student housing development, I'll remind everyone that CPM alone has nearly 1,600 beds of student housing hitting the market this fall in WaHu and Radius. They have only themselves as competition, since no other large student housing projects hit the market this year.

[mattaudio]

My guess is that holding a number of small properties with demonstrated cash flow is rather convenient in terms of lining up good financing for new projects: They're standalone assets that can easily be used as collateral, or as part of restructuring an investment shell for a project, etc.

[FISHMANPET]

[exiled_antipodean]

My guess is that holding a number of small properties with demonstrated cash flow is rather convenient in terms of lining up good financing for new projects: They're standalone assets that can easily be used as collateral, or as part of restructuring an investment shell for a project, etc.

It's also noticeable that in some places -- eg the corner of 15th Ave SE and Rollins opposite Van Cleve park-- they have a group of adjacent properties. One can imagine that there's value in holding these for rezoning and re-development.

The properties they currently own are R2B on this map, but they're right next door to R5 space.
http://www.ci.minneapolis.mn.us/www/gro ... 284533.pdf

[twincitizen]

It also occurred to me that CPM does not actually own many of these larger developments (esp. student housing) that they've been doing. They simply act as developer for whatever investor backing the project. They do still own many of the smaller properties they started out with, and I think you're right - both for cash flow purposes and to hold & assemble for future development.

P.S. Does this one really need its own thread? I think we can probably roll it into the U of M general thread once the additions have been approved.