Apartment Construction Boom (2011-??)

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grant1simons2
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Re: Apartment Construction Boom (2011-??)

Postby grant1simons2 » August 2nd, 2016, 6:08 pm

Things feel a bit slower this year to me. Anyone else feel the same?

twincitizen
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Re: Apartment Construction Boom (2011-??)

Postby twincitizen » August 3rd, 2016, 8:32 am

There's a bunch of approved projects just now getting out of the ground or (hopefully) starting soon though. Too many* to list even, and the ones I'm thinking of all have pretty big unit counts. If everything that's already been approved actually gets built out in a timely manner, there would seem to be a pretty big glut of new units (apartment and condo!) hitting the market in 1.5-2 years.

There's no doubt that additional sites are being looked at, but timing is everything. If you were looking at a new project in the greater downtown area (incl. NE), you probably want to hit the market after the dust settles from the 1000+ units hitting the market throughout 2018

*If anyone wants to spitball a list of the projects that just began construction recently, are reported to begin soon, or have been approved, go for it!

Silophant
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Re: Apartment Construction Boom (2011-??)

Postby Silophant » August 3rd, 2016, 11:40 am

Hm... Off the top of my head:

Finishing soon:
1st and Hennepin
Portland Tower
That one by Lake Street Station that isn't right on Lake.
Greystar The Lakes
The one Big D construction is doing by the Greenway

Just starting:
Nord Haus
Kraus-Anderson Block
Prospect Park Station
Cheapo site
Legacy Condos
700 Central

Theoretically imminent:
200 Central
Montage/Nye's
Elliot Park project
White Brick building in North Loop that we don't have a thread for
10th and Marquette (Maybe? They kicked all the tenants out like 8 months ago now)

Approved:
Mortenson USBank site tower
Nicollet Gateway
Stadium Village tower
Lake St. Station future phase(s?)

Probably a bunch more that I'm forgetting. Also a bunch in St. Paul, I just arbitrarily limited myself to Minneapolis

So, maybe it's slowed a bit from the peak, but it still seems like we're doing fine.
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twincitizen
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Re: Apartment Construction Boom (2011-??)

Postby twincitizen » August 3rd, 2016, 11:55 am

Opus block (365 Nicollet) is another big one that is approved but seemingly in limbo. Not much pre-construction work needed on that one though...they just need to close the parking lot and start digging, whenever they decide it's time.

Silophant
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Re: Apartment Construction Boom (2011-??)

Postby Silophant » August 3rd, 2016, 6:11 pm

Lol. Of course the project across the street from work is one I forgot.
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Anondson
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Apartment Construction Boom (2011-??)

Postby Anondson » August 3rd, 2016, 10:09 pm

Some might add the boom has spread a bit out to the suburbs as well.

In SLP the former Bally's site, The Shoreham, Central Park West all underway with Bridgewater, Parkway 25, and P.L.A.C.E coming soon; The Moline in Hopkins; in Edina a handful are coming or underway along York near Southdale.

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Re: Apartment Construction Boom (2011-??)

Postby Anondson » August 7th, 2016, 6:52 am

Interesting article in the Seattle Times about whether Seattle is truly a majority renter city yet.

http://www.seattletimes.com/business/re ... ned_buffer

Turns out Minneapolis is in the same small camp as Seattle, where the majority of residential units are rental, not owner. BUT, the majority of residents live in owned homes. Barely.

It all comes down to small households in the rental units. With apartments being built at our pace it's likely Minneapolis will be a solid renter majority city in a few years.

Qhaberl
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Apartment Construction Boom (2011-??)

Postby Qhaberl » August 7th, 2016, 3:37 pm

I'm surprised that nobody listed the "eclipse" I think that's the name. It was over in the vicinity of Hennepin and Washington. I believe it was supposed to be built back in 2007, but then the recession hit. If I am correct, it went before the planning commission in 2014. I believe it was 20 stories tall and contained 300 or so condominium units. I might be wrong on the details. Is said project even still in the pipeline? Or does it have a different name?


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Silophant
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Re: Apartment Construction Boom (2011-??)

Postby Silophant » August 8th, 2016, 5:59 am

Here's the thread for the Eclipse.
It did go before the CPC in 2014, but was shot down by the city due to the unreasonably high number of parking spots proposed (like 750, if I remember correctly).

Stanton still owns the property, but this project seems to be dormant, as he has since built Portland Tower and is moving on to the Legacy after that.
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Qhaberl
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Re: Apartment Construction Boom (2011-??)

Postby Qhaberl » August 8th, 2016, 7:23 am

I think i do remember hearing about the parking thing. Thanks @siliphant


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Anondson
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Apartment Construction Boom (2011-??)

Postby Anondson » August 18th, 2016, 8:26 pm

The continuation of the apartment boom will be determined by the appetite of the banks.

http://www.startribune.com/schafer-leng ... 390647151/

Some say the banks are tapping the breaks a little bit now.

min-chi-cbus
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Re: Apartment Construction Boom (2011-??)

Postby min-chi-cbus » August 19th, 2016, 8:39 am

Can't financing be had just about anywhere (not just MN), or is that what this article is implying (global financial trepidation)? It seems that for most "it" cities, especially along the coasts, that financing for projects comes from all over the world, and sometimes speculative (without pre-sales).

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Re: Apartment Construction Boom (2011-??)

Postby Anondson » September 4th, 2016, 2:00 pm

Despite the apartment boom going well into many years now, it's still a landlord's market.

http://www.startribune.com/despite-apar ... 392219731/

Also mentioned is that other cities have much faster rising rents than our 13 county metro. Is the Twin Cities metro achieving a "goldilocks" apartment boom? Just enough demand, just enough financial backing, just right geography to spread out, starter homes in just enough shortage...

QuietBlue
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Re: Apartment Construction Boom (2011-??)

Postby QuietBlue » September 5th, 2016, 3:16 pm

We don't have the constraints of geography that other places do (i.e. no mountains, great lakes, oceans, etc), so that keeps things somewhat in check.

grant1simons2
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Re: Apartment Construction Boom (2011-??)

Postby grant1simons2 » November 7th, 2016, 4:53 pm


Qhaberl
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Re: Apartment Construction Boom (2011-??)

Postby Qhaberl » November 7th, 2016, 7:16 pm

That's awesome and frightening. I continue to be extremely worried about gentrification. Most of the things that are being built are for those of higher incomes.


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twincitizen
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Re: Apartment Construction Boom (2011-??)

Postby twincitizen » November 8th, 2016, 7:40 am

Strib: http://www.startribune.com/apartment-de ... 400345451/

F&C: http://finance-commerce.com/2016/11/twi ... -expected/

I know it's probably locked, but the F&C article has a terrific chart, which I have attempted to recreate:

Code: Select all

Downtown Mpls 2012 2013 2014 2015 2016 Q3 Total units 5645 6891 8332 9271 9613 New supply 220 1246 1441 939 342 Vacancy rate 2.2% 4.0% 9.8% 7.9% 5.3% Absorption 199 1095 900 1019 570 %of new supply 15.4 45.1 32.8 28.2 15.0 Twin Cities 2012 2013 2014 2015 2016 Q3 Total units 171,036 173,799 178,190 181,525 183,801 New supply 1,428 2,763 4,391 3,335 2,276 Vacancy rate 2.9% 2.5% 3.4% 3.0% 2.9% Absorption 1,217 3,378 2,767 3,928 2,392 Source: Marquette Advisors Apartment Trends Q3 2016 report

MNdible
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Re: Apartment Construction Boom (2011-??)

Postby MNdible » November 8th, 2016, 10:06 am

A 70% increase over four years (downtown housing units) is truly impressive.

min-chi-cbus
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Re: Apartment Construction Boom (2011-??)

Postby min-chi-cbus » November 8th, 2016, 11:34 am

I guess so, but it truly pales in comparison to most of the faster growing cities in the country, including those in southern cities with non-traditional urban cores.

If we had 5,645 apartment units in 2012 "downtown", how did we have a population of roughly 30K-35K people? Are that many units owned, or is "downtown" defined differently here?

twincitizen
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Re: Apartment Construction Boom (2011-??)

Postby twincitizen » November 8th, 2016, 12:33 pm

The above figures are definitely rental only, so that's part of it. It's also possible that it excludes public housing and/or assisted living type buildings (found primarily in Elliot Park). And yeah, Marquette Advisors probably uses a tighter definition of downtown than the Downtown Council does (which includes both Stevens Square/Loring Heights and a sliver of Old St. Anthony along the river)


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