Photo by Robb Long

Scott Parkin, a principal of Hoffman Parkin Urban Realty, stands in a unit at the Zenith in the Mill District.

By Michelle Bruch

Real estate agents say plenty of people are touring the new homes Downtown has to offer, even if lesser numbers are buying at the moment.

Four new condo and apartment buildings have opened since the fall. One of them is billed as pretty and trendy, another calls itself basic and inexpensive, one boasts stunning skyline views, and another aspires to the height of luxury.

So far, prices aren't dropping at the new construction projects, and just a handful of people have moved in this winter. Real estate agents say the newbies cut across a wide swath of people — empty nesters, young professionals and middle-aged executives.

The first people to move into the Phoenix on the East Bank were a couple keeping a second home in San Francisco. Younger students have taken a shining to some of the less-expensive units at the Stage Apartments on Hennepin Avenue, and a wide range of age groups has moved into the Zenith in the Mill District.

Agents said that cheap apartments and condos priced over $1 million are selling the best in the current market environment.

"Cheaper units are going off the shelves," said Corey Abdo, leasing administrator for the Stage Apartments. Abdo said he wrapped up six leases in the last three weeks alone.

On the other end of the spectrum, at the Phoenix, more people are coming in to look at units priced from $1 million–$1.5 million than are coming in to look at $500,000 units, according to Fritz Kroll, an agent selling units there.

Upper floors of the Phoenix are still under construction, but resident Mike Cook was able to move into his condo in mid-December. He and his wife moved here from Edina, and they can now walk or take the bus to work.

"Since our kids moved out of the house, we just felt like we wanted more of an urban style of living," he said.

The Cooks were able to sell their home in a single week before moving Downtown, but the move might not be so easy for everybody.

Alex Stenback, a mortgage banker with RMG Mortgage, said condos are very difficult to finance right now. Buyers looking at investment properties can probably forget about securing a condo loan, he said, and financing for loan amounts more than $417,000 can be difficult to secure.

On the bright side, Scott Parkin, a Realtor representing the Zenith, said he thinks buying traffic this year is just as busy as it was last year.

"I am convinced that there is more demand for condos than for single-family homes," he said. "If we had a more fluid market, we would be sold out."

The fireplace-laden lobby of the Zenith is connected to the trendy aloft hotel by a tunnel. Residents can pay a monthly fee to access the hotel's fitness center and other amenities. Parkin said the building's biggest selling points are its sophisticated design and its location overlooking Gold Medal Park.

"It feels lively and fresh," he said. "It doesn't feel stodgy."

Of the recent crop of new buildings, the only one that isn't a brand new construction is the Stage Apartments. The building is known for once housing Café di Napoli on the first floor. Hotel rooms dotted the space above the restaurant, but the hotel was never a primary focus for the former owners.

The new owners effectively gutted the building to install more than 30 apartments upstairs.

"We wanted to make a more affordable Downtown living experience," Abdo said. "And that kind of idea has worked."

The Phoenix is scheduled to be substantially complete in April, and the build out is working its way up the tower at a rate of about two floors per month. The building features a garden potting shed, a wine-storage and wine-tasting area, and a "river room" with an expansive outdoor terrace.

The Ivy Residences, located in the Downtown core near Orchestra Hall, adjoin a 1930 building that was converted last spring into the Hotel Ivy. Residents can call down to the hotel's concierge services and use the hotel's skyway access to Downtown.



Reach Michelle Bruch at mbruch@mnpubs.com