MINNEAPOLIS, MN - When condo fever was running high, Minneapolis-based Master Development touted a site at 46th Street East and 46th Avenue South as the future home of splashy condos. Plans called for 24 high-end units at the south Minneapolis site, under the banner of "46th and 46th," near Minnehaha Park and just across the river from St. Paul's Highland Park neighborhood.
Today, the site is up for sale: Master recently hired Colliers Turley Martin Tucker, which is listing the redevelopment site for $1.85 million. The brokers plan to pitch the site to prospective apartment developers. Though the property remains vacant, Master did some site work, including the foundation, before the project stalled. "We're definitely positioning it as a multifamily site," said Gina Dingman, vice president with Colliers, who is listing the site with Julie Lux. "It's a great location. It's six blocks from the light rail line and it's across the street from the park. It's a nice neighborhood," Dingman said.
At the moment, however, there's no shortage of onetime condo sites being pitched for sale. Minneapolis-based Maxfield Research Inc, which tracks the local condo market, says there's been little to track lately. Projects, says Maxfield president Mary Bujold, are "either on hold, dead or being rethought."
Currently, Bujold said, that remain only two Minneapolis condo projects under construction: the Zenith project, being developed by Minneapolis-based Sherman Associates and Phoenix on the River, being developed by Minneapolis-based Schafer Richardson. Combined, those two buildings offer 145 condos. Through September, Bujold added, just 132 newly constructed condo units had been sold in Minneapolis.
The market has left many developers and would-be developers retrenching. "I think there are a number of sites out there that people are trying to look at trying to convert those from potential condo developments to apartment developments," Bujold said. "Sometimes, it just really depends on what the situation is with the current owner of the property."
In downtown St. Paul, the city is trying to regain control of the Farmers Market Flats site. Construction on the 48-unit project ground to a halt last spring amid ongoing litigation between the developer, the contractor and the city. St. Paul-based Sweeney Development stepped down as the developer in June.
Master previously developed a number of condo projects on urban infill sites including Arts Quarter Lofts, Greenleaf Lofts and Steele Flats, all in Minneapolis. Don Gerberding, CEO of Master, did not return phone calls seeking comment on the 46th and 46th site. Hennepin County property tax records indicate that 4646 Developers LLC paid $390,000 for 4556 46th St. E. in November 2004 and $300,000 for the adjacent 4516 46th Street E. in August 2005. Combined, the two parcels total just under half an acre.
David Crockett of Minneapolis-based Crockett Associates Inc. is shopping a site at 1801 Park Ave. in south Minneapolis. Crockett's group got approval for a 36-unit, four-story project on the site, but the project never went forward. "Our timing was not so good," Crockett said. 1801 Park Partners LLC paid $465,000 for the site in July 2006, according to Hennepin County property tax records. Crockett said the site has been vacant for about 20 years. Maple Grove-based Pfeffer Co. is currently listing the site for sale. The Minneapolis-based Ackerberg Group listed it previously.
Crockett acknowledged that in the current market, there are few buyers. "The interest has been modest, certainly not great. It's not a price issue: it's just nothing's happening right now, at any price," Crockett said. On the bright side, taxes are low on vacant sites, which makes it easier for developers to bide their time. "We're in a good position and we're patient," Crockett said.
Source: Finance-Commerce.com