With price tags running in the millions, Minneapolis Tower condos are a flagship
The developers of the 42-story Eleven on the River condo tower in downtown Minneapolis recently gathered to celebrate the crowning of what is now the tallest – and one of the most expensive – residential buildings in the city. On average, buyers will need to spend $ 1,000 per square foot – or $ 3 million per unit – to live in the building, which will be adorned with classic touches including wood-paneled walls, marble countertops, and herringbone floors.
And despite the challenges of the global pandemic and a summer of social unrest, the developers say buyers recovered more than two-thirds of the units a year before the building was completed.
Most shoppers already live downtown, they said, but not all. As at the time, one of the transactions took place virtually, with an out-of-state buyer.
The downtown Minneapolis condo market also appears to have passed its own hurdle. Last fall was tough, as downtown condominium sellers saw their listings rise and prices drop. While many more condos are up for sale than last year around this time, pending sales in the first three months of 2021 were 10% ahead of last year, new data from Minneapolis shows. Area Realtors.
At Eleven on the River, co-developer Luigi Bernardi said that despite recent uncertainties in the market, no buyer has backed down. And in recent weeks, the project has averaged two sales per week, allowing it to be sold by its opening in mid-2022.
Bernardi’s Arcadia LLC, which is developing the project with Ryan Companies, kicked off the project in 2019 at a time when condo sales were booming and many units traded hands without hitting the market.
The tower is built on what was a surface parking lot near the banks of the Mississippi River. The team hired Robert AM Stern Architects to design the tower – a first in the region for the acclaimed New York firm – and it includes high-end amenities including a lap pool, sports field and gathering spaces designed for large fundraisers and family reunions.
This is no longer the only option for high profile buyers. Construction is also underway on the Four Seasons residences – 34 condos atop the RBC Gateway Tower between Hennepin Avenue and downtown Nicollet Mall. Like the Eleven on the River, prices at the Four Seasons will also hit around $ 1,000 per square foot with entry-level units starting at $ 1.75 million. Sales agent Cynthia Froid said half of the buyers are from out-of-state but have family or business connections in the Twin Cities.
The developers of both projects have been discreet about pricing and sales, and neither of them use the multiple listing service and other listing sites to help sell the units, hence the pricing and details. specific are not public. Either way, potential buyers are quietly wooed into custom-built sales centers that authentically replicate what homes will look like when completed, with skyline views.
While rumors of an urban exodus following civil unrest and higher crime rates persist, city-wide sales data suggests otherwise. Although real estate agents say some homeowners have decided to sell because they are tired of the instability or are now able to work remotely, many buyers are ready to replace them.
Until recently, this was not the case in the downtown condo market. While the number of newly listed condos is on the rise, pending sales have posted annual gains over the past two months. And citywide, gains from pending condominium sales have exceeded sales of single-family homes.
Carl Runck, director of development for Ryan, said about 70% of Eleven on the River buyers already live downtown, a sign that they are ready to invest even more in the city.
Peter Prudden, a sales agent for Twin Cities, said there had been a distinct change in the downtown market since the start of the year and bargain shoppers might have missed their opportunity.
Last summer, he listed a 10th floor condo overlooking Gold Medal Park for around $ 1.9 million. He quickly received four offers, but all for a price significantly lower than the seller was asking. He took the unit off the market and planned to relist it after the conclusion of the Derek Chauvin trial. Earlier this month, however, a client who owned a condo on the next block who wanted a better view paid $ 1.8 million for the unit.
The situation illustrates how quickly the market has turned. “There was a point in time, and if you recognized it, you might get a deal,” he said. “Those days are now over… we will never see these kinds of agreements again.”
Froid saw a similar turnaround downtown. At Humboldt Lofts this spring, three units over $ 1 million sold before or within a day of hitting the market. One received several offers.
Yet the downtown market is a far cry from the vendor market, it was early last year when Jay Ettinger, a sales agent who lives in the North Loop neighborhood and owns a business downtown, listed a starter condo in the Summit House tower near Loring Park. Before George Floyd’s murder, he received an offer. But soon after the riots, the buyer backed down. The unit is still for sale – at a significant discount.
“This [downtown Minneapolis] is the only market where the buyer has some influence, “he said.” It’s been a long year for everyone. “
Jim Buchta • 612-673-7376