MINNEAPOLIS—The Twin Cities' unemployment rate has sunk to the lowest in the nation, and developers have launched luxury multifamily projects across the region to accommodate all of its job-seekers. High Street Residential, a subsidiary of Trammell Crow Co., has just acquired a 1.89-acre site for the construction of a 164-unit, six-story, class A residential mixed-use building in Minneapolis' Lake Calhoun District. Company officials say they expect to begin construction in the second quarter and move tenants in by the third quarter of 2016.
The new development will sit in the Uptown area at 3118 W. Lake St., just 2.5 miles from downtown Minneapolis and next to the Minneapolis Greenway. Residents will be able to walk or bike to Lake Calhoun, Lake of the Isles, as well as downtown.
“Historically, the millennial residential segment has been drawn to the Uptown area,” Johnny Carlson, senior vice president of Trammell Crow's Midwest business unit, tells GlobeSt.com. “People are drawn to it in the summer months.” In addition to its park-like atmosphere, the neighborhood is known for its upscale restaurants, entertainment and shopping, and that combination should bring in not just young professionals, but empty nesters and others.
This is the fourth luxurious multifamily project that the company recently started here. As reported in GlobeSt.com, along with 3118 W. Lake St., the Midwest unit built the 182-unit Junction Flats just northwest of the central business district in the North Loop, an emerging community that younger renters find attractive. In addition, the developers have taken advantage of the vibrant suburban office market by building Arcata, a 165-unit community in Golden Valley, and beginning the Island Residences, 174 luxury apartments on a forested island in Minnetonka at the heart of the Carlson Center, one of the top office complexes in this region.
"Obviously we don't have a crystal ball, but we feel good about the absorption we've had at our different projects,” Carlson says.
3118 W. Lake will include studios and a mixture of 1-bedroom, 2-bedroom, 2-bedroom plus a den and 3-bedroom apartments. The commercial portion of the development will consist of 5,000 square feet of indoor restaurant space and an outdoor patio.
ESG Architects will serve as the project architect and a joint venture between Continuum Construction/Big D Construction will serve as the general contractor. Jerry Ebert, senior vice president of construction, will oversee the project's development.
Its amenities will include a hotel-style lounge, conference room and fitness center and yoga room. The outdoor deck on the third level will offer views of Lake Calhoun, resort-style pool, fire pit, grilling lounge and access to the club room. A sixth level sky lounge and viewing deck will have an internal stairwell leading to the rooftop deck featuring a fireplace and seating area.
Grady Hamilton, principal and leader of the company's Midwest unit, tells GlobeSt.com that they have good reasons to be confident of the Twin Cities' long-term prospects. Nineteen Fortune 500 companies make their home here and will provide a steady stream of educated, high-income renters for years to come. Although some newcomers initially expressed a reluctance to move to a city so famous for its cold weather, the diverse economy, amenities and the surprising amount of green space usually changes minds. “Once they're there, it's very difficult for them to leave.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
