JSOnline: Riverwalk funding advances
Do you ever drive down McKinley where the former Park East freeway once stood and wonder why all this valuable land was freed up?
Do you ever wonder why it has taken so long for this area to be developed?
Well, stop wondering because we should be seeing some activity finally near the corner of
Juneau Avenue and Third Street.
Ruvin Development, Inc., who has been involved on a number of downtown real estate developments in recent years, plans to begin construction on his Aloft Hotel project this spring.
Aloft will feature a boutique hotel, high-end condominiums, and will include street level retail space.
This mixed-use property will overlook the
Milwaukee River, just north of
Juneau Avenue.
In addition, Ruvin is seeking financial assistance from the City to help pay for a Riverwalk and public plaza.
The Zoning, Neighborhoods and Development Committee unanimously recommended spending over $850,000 to help finance these public improvements.
This loan will be repaid through property taxes generated by the hotel and other neighboring developments.
Ruvin expects the hotel to open in summer 2009.
Despite the news about a slowing housing market, real estate developers still envision a growing downtown economy and real estate market.
Real estate developers are realizing that they need to have a business plan in place before they begin breaking ground.
Recently, we have read a number of articles which feature some condominium developers experiencing financial woes (The Franklin at East Pointe, Landmark on the
Lake,
First Place on the River,
Wisconsin Tower).
I believe we will begin to see a shift from “condo-only” developments to mixed-use developments which will also happen to include smaller condominium associations.
Based on discussions I have had with other downtown condo specialists, the condominiums planned for the Park East will be marketed to buyers who appreciate the finer things in life.
According to our Metro Multiple Listing Service (MLS) the average price per square foot for all of downtown (including the surrounding neighborhoods) is approximately $200 per square foot.
According to the listing broker for one of the proposed condominium associations in the Park East, she estimates that the price per square foot will be double the average (approximately $400 per square foot).
There appears to be strong demand for super-luxurious condominiums in downtown.
Downtown Beware
I believe downtown officials need to be careful.
For years, I have heard young professionals complain that they can’t afford the downtown condominium lifestyle.
I will tell you that the best buys are located just outside of downtown in Riverwest, Brewers Hill,
Halyard Park, Bronzeville, Walkers Point, and the “Fifth Ward.”
But even these neighborhoods are commanding at least $185 per square foot price tag.
Our rental pool in downtown has declined as a result of apartment-to-condominium conversions.
As a result, we have seen market forces increase the cost of rent.
I am hopeful that some of these conversions will return to apartments as this will have a positive effect on the downtown condominium values.
This will also offer additional options for downtown dwellers to choose between leasing and purchasing.
Since the financial industry are tightening their lending policies and pushing potential buyers away, downtown needs to offer housing for those who are unable to purchase.
Tom Daykin, writer for the Milwaukee Journal Sentinel, writes more about Ruvin’s Aloft development and its proposed Riverwalk.
Click here to read the entire article>>>
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Labels: Real Estate
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