Developers look for deals in the multi-family housing market.
New trends are starting to emerge this year in multi-family housing. Developers have waited on the sidelines looking for opportunities to get back into the market. Those developers who were patient and cautious in the previous two years are now finding great deals and they are beginning to go shopping. The misfortune of past developers are leading to golden opportunities for those with cash in this new era of development.
The market is beginning to settle and banks are ready to deal on properties they were stuck with. A cash buyer can come into a development and pick up great properties for pennies on the dollar. We are seeing the trend begin to pick-up in the first quarter of the year and all signs are that the trend will accelerate as more great buys hit the market.
A case in point is the recent purchase of the Sexton project in Minneapolis by Minneapolis Lofts LLC – controlled by Andy Chase . A project that began with high hopes but then brought down by corruption and a crashing condominium market now has the potential to re-emerge. The new owners purchased the property for a reported $4.5 million and plan to infuse the project with an additional $2 million. This is well below the original $12.4 million construction and purchase price. See the Startribune article:
The original project approved by the city included a multi-story tower on the site directly to the south of the existing Sexton building.
The opportunity for Minneapolis Lofts and other developers to build on the bones of past projects will provide great upside for this and other projects. We look forward to working with Minneapolis Lofts as they bring this project back to life.
Nathaniel Shea • Architect and Principal with Tanek