MINNEAPOLIS—Luxury apartment markets are booming in cities across the US, but so far, new condo developments have been comparatively rare. Minneapolis, however, which has one of the nation's most vibrant economies, is about to get a major new residential condominium project. Officials from San Francisco-based PCCP, LLC say they have provided a $130 million senior loan for a 374‐unit project called The Legacy on behalf of its owners, a joint venture between Provident Real Estate Ventures and Shamrock Properties, Inc.
Located at 1240 S. 2nd St. in the downtown Mill District, the project will consist of an eight‐story podium with a 14‐story and a 17‐story tower, and three levels of subterranean parking.
“There is strong demand for new condos downtown,” Brendan Shanahan of PCCP tells GlobeSt.com. But so far, developers have not been overly eager to launch new condo projects. “This project would not have been as attractive if we saw a lot of competition.”
He attributes much of the demand for condos to baby boomers that live in outlying neighborhoods and towns, but now, facing empty nests, would prefer an easier downtown lifestyle. And The Legacy fits their needs. “It's at a price point that matches what suburban homes are selling for.”
The buildings will offer a wide range of prices, from $370,000 to $1.4 million, and include a fitness center, game room, community room and two roof decks with a pool, hot tub, lawn bowling, and grilling areas. Riverdale Ventures Legacy, LLC, an affiliate of Shamrock Development, is developing the property, and anticipates completing it by next summer. According to the developer, 127 units have already been sold. The Minneapolis office of Dougherty Funding arranged the financing on behalf of the owners.
Shanahan says it's possible condo developers will soon become a bit more comfortable with the Twin Cities. One factor which may have held some back was how easy it was for condo boards to sue developers over construction issues. “That was a risk you had to factor in when building condos,” but a new state law has tightened requirements for such actions, and boards now need wider agreement among their members before launching litigation.
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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.
