01-22-08 1B Market Study - Laserfiche WebLink

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FOR-SALE MARKET ANALYSIS Active Condominium Developments Table 19 shows information on nine select active condo developments. Four are in the Arden Hills Market Area and five are new developments located in the Metro Area for comparison pur- poses. The following are key highlights of these developments. ~ Most condo developments both in the Metro Area and in the Arden Hill Market came on line in the same period, between 2005 and 2006. Absorption rates have slowed since 2006 and there are a sizable number of units available. ~ Two bedroom condos typically start in the mid $200,000's. The highest priced condo surveyed is a three-bedroom penthouse in the Cobalt in Minneapolis for over $2 million. The highest priced condo in the Market Area is in Roseville, at $793,000 for a two bed- room penthouse unit. ~ Townhomes tend to cost less considerably less per square foot, and also are likely to have substantially lower association fees. Thus, condominiums do not compete as well in sub- urban areas with a considerable amount oftownhome development. Condominiums typi- cally perform better in the central cities and inner-ring suburbs with fewer townhome choices. ~ The four Market Area condominiums are located in Columbia Heights, New Brighton, St. Anthony, and Roseville - all communities that are more fully developed. Main Street Village in New Brighton was developed as a rental apartment but converted to condomi- niums in 2005. Twelve ofthe 96 units remain available. The condo market has experienced the largest setback in today's housing market. Mid-rise con- dos are unlikely to be part of any development mix for the foreseeable future, say builders. In the Arden Hills Market Area two age-restricted condo projects have been halted: Water's Edge 55+ condos in New Brighton and The Regent at Uno Lakes (120 units of independent living). The Water's Edge project was part of a larger development headed by two builders, totaling 600 units of condos and townhouses in New Brighton's Northwest Quadrant. That development was put on hold, with the withdrawal of one of the builders. 44 MAXFIELD RESEARCH INC.