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hsp2005

Which is best location, best investment

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I like the eclipse location because its close to all the entertainment, wondering which would be best investment opportunity. whats this A develpment someone was talking about also?

thanks

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The Nicollet.

Located in the heart of DT. Numerous restraunts and shops within a 3 block radius, and Target is a half block away... Farmers Market....Nicollet Mall....etc.

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Best investment v. Best Location or Both?

They seem to be very different things to me and do not always go hand in hand.

The Nicollet is probably the best location for reasons mentioned above. But at 800 sq ft for $275,000 I don't think its the best investment. There really can't be too much upside on that until everywhere else gets more expensive.

Personally I think Skyscape in Elliot Park is a good investment in the 5 year range. The prices are closer to $180K for 800 sq ft. It has a retail component (Starbucks so far, we'll see what else) Only about 5 blocks from Nicollet Mall, Target, Etc. 3 blocks from Keys. There is a new diner going in at the Sexton a block away and the 1010 park project will bring another 3 towers, 27,000 sq ft retail and 355 more units in accross the street. With 5th Ave. Gateway coming and another 100 or so units. Store fronts on 10th Street will get utilized in that time frame. Essentially they are adding more units in this neighborhood than any of the others when you count Grant Park and I think that will drive the commercial, etc. and values will follow.

I live a block from the Skyscape site and bought here since it does look like the best investment to me right now. I think you buy into a neighborhood while it is rising in stature from an investment standpoint. More risk, more reward. I was in the North Loop from 1998 to 2004 where the first building I bought into prices had prices that were $80K to $150 for 900 Sq ft to 1350 sq ft.. Sounds like a great deal but you have to remember the risk of all the development we've seen since then not actually happening.

Eclispe is a strong location since the Whole Foods site will be built in a few years time. Too early to tell on the investment side.

The Pillsbury A Mill is across the river (St. Anthony Main) and will be an excellent location with downtown, sout views, on the river, great neighborhood, historic building. Except based on the price for the Phoenix (same developer) it will likely be prohibitively expensive like the Nicollet. Surely people will buy but I'm not sure there is as much upside since your are buying into a mature neighborhood.

My two cents.

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Your best bet is always to get into a development and neighborhood before it become Hot.

Take the area around Hennepin Ave accross the river --5 to 7 years ago, there was not much there and it was cheap, now the prices of new developments are off the charts (Colbalt, Phoenix) because it has become a great little neighborhood with shops etc.

The problem is that you never know how long until it will get "hot". Remember there were developments built on that side of the river in the 80's and those people had to wait 15 years for the neighborhood to really blosom.

I agree that Grant Park (Elliot Park neighborhood) was an awesome investment that seems like it is going to pay off because Skyscape is getting built, 1010 Park and the 5th Avenue Gateway (maybe). But, it will still be five years at least before the neighborhood is really flourishing. And if the other developments did not come through, Grant Park might not have turned out to be as good of an investment (although they initially priced them really cheap).

As for the buildings on Hennepin and Washington. It seems like Washington is poised for a real future, but personally i would not want to own a unit on that corner. It has way to much traffic especially on weekend nights and it isn't your theater-going crowd or dining-crowd. It is the rowdy-drunk sort of crowd.

If this is someplace you are actually going to live, you need to ask yourself if you are willing to live there for 5-10 years to really get the full effect of a development on the neighborhood. If not, then pick an already developed neighborhood or one that is partially developed but the reward will be less.

If your plan is to buy a unit and flip it really quickly -- i personally think you need to look outside downtown. There is already too much speculation downtown and other areas waiting to be discovered.

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If you're on the lower end of the salary spectrum, I think a couple of the established buildings are good, like Centre Village and The Towers. Per square foot, they mabye aren't that much cheaper than the rest, but at least you can enter the downtown market with something below 175k. And with the vast majority of the downtown units being so expensive, I think investing in the lower/modest end might pay off. I think there's a pent up demand for smaller, basic units for those folks who are single and have modest downtown jobs or just want the downtown lifestyle.

And their locations are pretty good. Centre Village is skyway accessible and is proximal to up-and-coming Elliot Park. And The Towers is smack dab in the middle of the Downtown--North Loop--Mill District--Nicollet Island/Northeast diamond. The best feature of The Towers is the huge courtyard, which new developments can't rival because land is getting scarce and too expensive.

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On the edge of downtown, I like 210 grant (Loring Way). The one bedrooms are under $200,000 and they have great park acess -- and best of all balconies.

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best investment/best location

Lets set the record straight right now, the Nicollet will not be built for quite some time (maybe 2010) due to a little detail called pre sale requirement for construction, the A mill that everyone has been talking about will be selling in less than a year but run 500+/sf!!! Good luck with anyone on this board buying one of those. I would stick to the Mill District and St Anthony Main as both areas have multi million dollar units being built however in both areas there are one beds that run about 200k that you can snap up.

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