Loring's glory
Terry Fiedler, Star Tribune
April 2, 2004
Loring Park, one of Minneapolis' most venerable neighborhoods, is experiencing a development boom that would make an exurb jealous.
Up to about $500 million in projects, many of them residential, either were begun or brought to the market in the past year or on the drawing boards now, according to John Van Heel, president of Citizens for a Loring Park Community, a neighborhood nonprofit.
Among the projects under consideration is a 21-story residential tower and what could be easily be a $100 million condo and apartment complex at a site currently occupied by Allina Hospitals and Clinics.
Michael McLaughlin, executive director of the Loring Business Association, called the amount of current and potential investment "stunning."
Mary Bujold, president of Maxfield Research, a real estate research and consulting firm, described the building as the largest wave of activity in the area since the early '80s. Development activity may be greater along the river or in the Minneapolis warehouse district, Bujold said, but Loring stands out because it's a long-established residential neighborhood rather than a commercial area being converted to residential use.
Bujold said the sale of desirable properties by longtime land owners and strong overall demand for urban homes -- driven by factors such as commuting concerns, increased numbers of empty-nesters and low interest rates -- have helped to create the development wave.
City Council Member Lisa Goodman, who lives in the neighborhood and represents it, emphasized that the residential projects are being developed without city subsidies and that the city's tax base will grow because projects are, in many cases, sprouting from parking lots or buildings that have been in disuse.
In the case of the Allina's 2.5-acre site, the property once again will go on the tax rolls after it's redeveloped.
Allina has been housing about 300 information technology employees in the old Eitel Hospital complex, and the workers will be moved into the Sears building site late in 2005.
Allina spokeswoman Kendra Calhoun said the company received proposals for the site this week and expects to have a purchase agreement completed within the next few months.
Van Heel said the Allina site is easily the most important in the Loring area because of its size and its location fronting the park. When fully developed, it's expected to have hundreds of condos and apartments that would make it worth about $100 million, he estimated.
The original Eitel Hospital building, built in 1911, is expected to be renovated, and other additions to the original building will be demolished.
Even before the Eitel Hospital was built, Loring was a well-heeled neighborhood of fine brick homes and mansions. Over the years, it evolved into area dominated by apartments, condos and townhouses, enduring a time during the '70s when it was known largely for being a high-crime area.
About 8,000 people now live in the neighborhood.
The area is bounded by Interstate Hwy. 94 to the south, Hennepin and Lyndale avenues to the west, Hawthorne Avenue to the north and 12th Street between it and the core downtown.
Beacon Construction and the architectural firm Meyer Scherer and Rockcastle recently talked to neighborhood representatives about two options for a parking lot at 430 Oak Grove St. -- a slender, 21-story tower with 122 units that would have an 8,000-square-foot footprint; or a comparatively squat six-story building with 75 units and a 19,000-square-foot footprint.
Neighborhood representatives who saw the presentation favored the tower by a slight margin in an informal poll. Units would be priced from $200,000 to $500,000.
Beacon wants to complete the permit process by mid-June and start construction shortly thereafter, according to McLaughlin of the Loring Business Association.
The Episcopal Center at 1730 Clifton is for sale (the diocese is relocating its staff in August) and the building is also expected to be converted into a major residential development.
Two projects already under construction include a four-story, 44-unit residential complex at 301 Clifton Av. and a five-story, 59-condo building at 301 Oak Grove St.
Scott Bader, a principal in Steven Scott Management, which will break ground on a 114-unit condo and townhouse building at the former Red Cross headquarters site at 317 Groveland Av. this summer, said the neighborhood's key selling points include the location just a few minutes from downtown or Uptown, and amenities such as the park, the under-construction Walker Art Center and the sculpture garden. Units will range from $150,000 to $570,000.
Bujold of Maxfield Research said demand should continue to be strong for condos and other units for the foreseeable future, though sales times are likely to lengthen as more housing units become available.
Other projects under development include the renovation of a former Billy Graham ministries building at 1201 Hennepin Av. CVS Pharmacy plans to open one of its first stores in the Twin Cities there by this fall. The development also would include 16 residential units on the second and third floors.
As for the former Billy Graham World Headquarters at 13th and Hennepin, it was recently bought by Minneapolis Community and Technical College (MCTC) for $11.2 million. The building will be used for office, classroom and support space.
Educational institutions have helped drive demand for the neighborhood's real estate, whether it's an MCTC expansion or the University of St. Thomas' new 150,000-square-foot law school, which opened last fall.
While there are concerns about congestion related to development, neighborhood representatives say the area is accustomed to high-density housing and that the increased street activity should make the area safer.
Council member Goodman said Loring hasn't gotten the attention of other neighborhoods, but, in some ways, it was only a matter of time before it did.
"Nothing against the river, everyone on the river is great," she said. "But I think there is a real interest in living in an established neighborhood."
This post has been edited by Twin Cities: 03 April 2004 - 12:29 AM
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