LPM Apartments - (376' - 36 Stories)

Downtown - North Loop - Mill District - Elliot Park - Loring Park
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Nick
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Re: LPM Apartments - (376' - 36 Stories)

Postby Nick » January 29th, 2015, 7:32 pm

25%? :-|

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Re: LPM Apartments - (376' - 36 Stories)

Postby Silophant » January 29th, 2015, 7:47 pm

Yeah. Doesn't bode super well for Magellan's continued investment in Minneapolis.

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Re: LPM Apartments - (376' - 36 Stories)

Postby Anondson » January 29th, 2015, 8:06 pm

Certainly would back up developer disinterest in that stretch of Nicollet, too...

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Re: LPM Apartments - (376' - 36 Stories)

Postby John » January 29th, 2015, 9:46 pm

The rents are undoubtedly overpriced for our market. You can get a brand new fancy apartment with the same square footage for probably 15-20% less all over town. And I've noticed some of the older, more established apartment complexes have upgraded their units, lobbies , etc and offer cheaper rents. As much as I'm not a fan of Nic on Fifth's design ( ;) ) they have a much more desirable location than LPM even though they are probably a bit overpriced too. There are lots and lots of choices.

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Re: LPM Apartments - (376' - 36 Stories)

Postby aeisenberg » January 29th, 2015, 10:13 pm

Too far from the core, too high priced :-/
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Re: LPM Apartments - (376' - 36 Stories)

Postby Avian » January 29th, 2015, 11:21 pm

Literally an 8-minute walk to Macy's. Yeah, that's too far from the core for fatso Americans. :)

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Re: LPM Apartments - (376' - 36 Stories)

Postby Tyler » January 29th, 2015, 11:24 pm

I don't think its too far. It's just on the wrong side of the gas station.
Towns!

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Re: LPM Apartments - (376' - 36 Stories)

Postby Avian » January 29th, 2015, 11:28 pm

And WTF...Did they give up on lighting the crown?

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Re: LPM Apartments - (376' - 36 Stories)

Postby John » January 29th, 2015, 11:48 pm

Avian wrote:Literally an 8-minute walk to Macy's. Yeah, that's too far from the core for fatso Americans. :)
lol! Your probably right. But Nic on Fifth has the advantage of being right next to an LRT station and skyway access to downtown.

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Re: LPM Apartments - (376' - 36 Stories)

Postby nickmgray » January 30th, 2015, 8:04 am

Give it time. This is the most expensive building in Minneapolis. The are quite a lot of people who are wanting to live in downtown, but very few who can justify spending $1400 on a 650 sq ft apartment. I think the building would be a little more attractive to some if it was 2-3 blocks closer to the core, but I don't think the location is hurting it that much. It's in a nice neighborhood and only a block from the park.

If it truly is only 25% leased at this point, it will take them about a year to get into the 75-85% leased range.

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Re: LPM Apartments - (376' - 36 Stories)

Postby bubzki2 » January 30th, 2015, 8:29 am

Would make the conversion to condos easier if you have only a few people to give the boot. General sentiment (anecdotal) seems to be that paying this much for rent is obnoxious. Then again, the views paired with amenities makes this building unique in the Twin Cities I believe.

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Re: LPM Apartments - (376' - 36 Stories)

Postby MNdible » January 30th, 2015, 10:51 am

I suspect the real issue isn't the relatively short "commute" walk into the downtown core. I'd guess the underlying issue is that this just isn't perceived as a "luxury" neighborhood. It lacks the amenities (restaurants, bars, prestige) of some of the other hot neighborhoods (areas that are actually further from the downtown core than this is).

That, and I suspect that the rent really is too damn high, relative to what else is out there. Also, I'd be intereted to see if they're having some pushback about their parking situation, which really shouldn't be a big deal, but...

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Re: LPM Apartments - (376' - 36 Stories)

Postby twincitizen » January 30th, 2015, 11:40 am

MNdible wrote:I'd guess the underlying issue is that this just isn't perceived as a "luxury" neighborhood. It lacks the amenities (restaurants, bars, prestige) of some of the other hot neighborhoods (areas that are actually further from the downtown core than this is).
Agreed. Retail/restaurant/bar activity in Loring Park is really weak relative to the high population density. Some that seems to stem from proximity to downtown (i.e. south end of Nicollet Mall has quite a bit going on). Some of it stems from a total lack of redevelopment on the neighborhood's main commercial street (Nicollet). Currently, all Loring Park has going for it is the gas station strip mall with Lotus and a liquor store, and the 1400 Nicollet block of restaurants/pubs. Hennepin/Harmon is technically in the neighborhood, but not really contextually...it's on the wrong side of the park and away from the population density.

Someone said it earlier, but yes, it seems that Magellan misjudged the neighborhood here. When you can rent literally next door or across the street for $1.20-$1.40/sf, it has to be pretty difficult to charge double that rate, amenities and views be damned. I think Loring Park maybe needed 1 or 2 more "Vue" developments and 1-2 years of rent inflation before LPM hit the market.

Re: condos - They couldn't have known this at the time the building was being designed, but by the time it finally hit the market, condos might have actually been a better choice. No one was thinking that in 2011-2012 however, as the crash/recession was too fresh.


For my own preferences, I don't "get" Loring Park. Other than being close to downtown and there aren't many/any lower priced apartments within downtown itself, Loring Park doesn't seem to have a lot going for it. I suppose if you work downtown, but spend a lot of time in Whittier/Uptown, it could make perfect sense. But there are presumably a number of people living in Loring Park who A) don't work downtown and B) own a car and don't have off-street parking. I have no idea what those folks are thinking.

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Re: LPM Apartments - (376' - 36 Stories)

Postby xandrex » January 30th, 2015, 12:09 pm

I get some of the appeal of Loring Park and would like to love it, but I've found that its lower-priced rents just don't get the same sort of apartment.

I'll be moving in August/September, so throughout the year I just check on supply that's in my price range (fairly limited). I'll get really excited to see something in about the $650-700 range in Loring Park, only to click on it and find out that it's a pretty crappy building, oh, and parking is another $150/month. Want a slight step up to quality that you find pretty regularly in SE or Uptown? Well that'll cost you $1000. Or it'll look nice and be fairly cheap...and you find out that they have major rodent or bedbug problems.

This is an related, but off-topic tangent that fits with the above, but the same searched have shown hard tight the bottom of the market rents are in the southwest quadrant of town. It's kind of amazing how much prices in Whittier and Stevens Square have risen due to Uptown's popularity compared to when I started regularly casually browsing maybe 2-3 years ago.

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Re: LPM Apartments - (376' - 36 Stories)

Postby MNdible » January 30th, 2015, 12:29 pm

Image

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Re: LPM Apartments - (376' - 36 Stories)

Postby Drizzay » January 30th, 2015, 1:01 pm

Physical Occupancy is only 17%. Some of what they are figuring into the 25% is Corporate Housing.

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Re: LPM Apartments - (376' - 36 Stories)

Postby EOst » January 30th, 2015, 1:35 pm

Are the other wealthy-people neighborhoods near downtown really all that much more vibrant than Loring Park? North Loop sure, but neither the Mill District or the nicer parts of Eliot Park are exactly bar-and-restaurant paradise.

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Re: LPM Apartments - (376' - 36 Stories)

Postby acs » January 30th, 2015, 1:48 pm

Loring park has the largest population of all of them, though. You'd think that would be the place to open a restaurant.

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Re: LPM Apartments - (376' - 36 Stories)

Postby aeisenberg » January 30th, 2015, 2:13 pm

Avian wrote:Literally an 8-minute walk to Macy's. Yeah, that's too far from the core for fatso Americans. :)
Welllllllll, you know what I mean-- too far from where the core of the downtown luxury market is-- in an area much more like Stevens Square than North Loop.
Aaron Eisenberg / Realtor, Keller Williams Integrity
612.568.5828 / aaron@agentaaron.com / 1350 Lagoon Ave #900
http://www.agentaaron.com

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Re: LPM Apartments - (376' - 36 Stories)

Postby twincitizen » January 30th, 2015, 2:20 pm

There was a Journal article at one point that quoted a guy/girl who was moving from North Loop to LPM, who said "but the surrounding neighborhood is not as nice" or something to that effect. I think many of us kinda scoffed at that, to varying degrees, but when you get down to it, they were not wrong. LPM is surrounded by much lower-income housing than anything in the North Loop, which is fairly homogeneous. LPM's nearest neighbors are older market-rate buildings (some crappy, some not) and actual low-income/senior housing.

I think what it gets down to is that LPM is not at a "100% location", as they say in commercial real estate. It's not on the park, it's not on Loring Greenway, and it's not the skyway system. It may sound stupid, but if LPM was just 1.5-2 blocks closer to the core, or on the skyway system, I think they'd be leasing up a lot faster.


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