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NORTH AMERICAN PROPERTIES HOPS ABOARD CONDO TREND
9/9/2004
Southwest Station project was originally going to be apartment complex, but a look at the hot Twin Cities condominium market drove a new approach
Published in Finance and Commerce, September 9, 2004
By Burl Gilyard, F&C Real Estate Writer
Condos? Or apartments? North American Properties was originally planning to develop another apartment project in Eden Prairie. But after surveying the current Twin Cities residential real estate market, the project was recast as for-sale condos. Residents are slated to begin moving into the first phase of the new Southwest Station by November.
“The market seemed to support that,” said Jay Scott, partner with the regional office of North American Properties, which is based in Cincinnati. “We felt the market was deep enough and strong enough.” Scott says that his firm changed course on the project about four months ago.
Another North American project in Eden Prairie, the Watertower apartment complex, opened earlier this year. The 236-unit Watertower includes 15,000 square feet of retail space anchored by an Old Chicago restaurant. That project, at 12300 Singletree Lane, also houses the local office for North American Properties.
“We felt it probably was not necessarily in our best interests to compete with ourselves,” said Scott.
Regionally, apartment vacancies stood at a relatively high 7.1 percent at the end of the second quarter according to statistics from GVA Marquette Advisors. Meanwhile, the for-sale housing market remains robust amid historically low mortgage interest rates.
Ultimately, Southwest Station calls for 237 units with a variety of floor plans, ranging from studio-sized condos to town homes. The project sits on a 25-acre site at 13560 Technology Drive, near Highway 5 and Prairie Center Drive.
Some aspects of the project haven’t changed. The name and marketing of the project tout its proximity to public transportation: the Southwest Metro Transit Station Park-and-Ride lot. And, if light rail someday gets extended to Eden Prairie, the line could run close to the project. “I think we’re hopeful for that, I don’t think that was a primary decision factor,” said Scott.
Scott says that the project offers some competitively priced units for the suburban market. Prices at Southwest Station range from the $130,000s to the low $400,000s.
“Eden Prairie housing is kind of at a premium right now. There really isn’t any affordable housing in Eden Prairie,” said Scott. “Most of the product certainly in the single-family range is going to be well north of [$300,000].”
Project sales manager Bonnie Willeck of Coldwell Banker Burnet said that the response to the project has been strong.
Southwest Station includes 40,000 square feet of retail space, which currently houses 10 different restaurants ranging from Chipotle to a Culver’s. “It’s sort of a restaurant park,” said Scott.
In general, Scott is bullish on Eden Prairie. “As a submarket, it’s a very desirable market. We’re excited about opportunities within that submarket,” said Scott. “Long-term, they’re excellent locations and will be excellent properties.”
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