The Saint Paul Condo Blog

New from the Pioneer Press today says that Bill Murray and clan are getting ready to open a Caddyshack theme'd restaurant in Saint Paul.  I guess they are shopping several locations (not just Lowertown), but I'd put good money on them finding a place in Lowertown itself.  With the possible Saints Stadium on the horizon, it only makes sense.

There's a few possible locations that I can think of that might work for them.  First, let's start with the easiest.  LoTo.  I mean the place is always dead, and the place has been going downhill since about 6 months after it opened.  It's beyond me how they remain open.

Other possible locations.  The Strauss Building (Sibley & 5th), Market House (5th and Broadway - which would also be across the street from said stadium).  Market House would sound like the obvious location on paper, but I'm not sure it provides the right kind of set up they are looking for without some major remodeling.

Where do you think Caddyshack should go?

I knew this would happen - the mad dash to get buildings approved for FHA financing!

I bet the Lowry will have their approval before the April 30th buyer tax credit deadline, but it's going to be close.

Something new about FHA approved buildings...  In the past, once you were an approved building, you were set for life.  It was like being in the cheap financing option mafia.  Well, now HUD has seen the errors in their ways and now cap the approval at 3 years.  What may be bad for condo buildings, is healthier for HUD and in the long run, healthier for condo buildings too.  Building will have to re-apply every three years.  Meaning they will still have to be in good financing shape and not run down.

NEW FEATURE - Click for larger image

I've been walking by this building for years and it always looked so sad.  Well today the door was open and people were mulling about.  The curiosity got the better of me and I asked if I could go inside.  The potential is amazing!  The space reminds me a lot of 9th Street Lofts, but the ceilings seem a little higher.

The current building owner is looking for possible options for the building and a condominium is on his short list.  The only problem I see with a condo out of this project is the smaller size of the building.  I'm not 100% of the foot print, but I'd guess you could get about 5 1,000sf units on eash floor, or about 10 units.

Now, I'm sure you are all trying to figure out where this building is located.  As soon as someone figures it out, I'll post the rest of the info ;)

EDIT:

Dang, that didn't take long to crack the case at all!  And Dan, I was actually considering photoshopping the windows a bit to make the buildings outside not visible, but decided to let it slide.

NEW FEATURE - Click for larger image

Also, What does everyone think of the larger image size?  Does it matter?  Or should I just stick to the 400x271?

Normally when a business dies, flowers are ordered.  But what do you do when it's the florist that calls it quits?

Stems & Vines is going out of business and leaves a bit of a void here in St Paul.  Always sad to see a good business go.

On the other side, it will be less confusing when Vines & Steins opens now!

Another building has been added to the exclusive club of FHA approved buildings, and this time it's the Union Depot!  The condo project that I thought was down and out has risen like the phonix (with the help of Uncle Sam) and looks to be an interesting place in the near future.

And if that wasn't enought to get you to want to live here, how about knowing it's where a movie is being filmed?  More on that later.

Why is this such a big deal?  Financing is tougher than it used to be, especially for a condominium.  More details on that can be found by checking out this post for a while back.

18 days since the last post is not something that I am proud of, but I'm back in earnest.  It's been a very busy few weeks, so I've neglected the blog.

And with that, we'll be up and running now.

It's been a mad dash over the last few weeks, and I bet they will be working up until the last possible minute.  If you haven't been following the blog, they are located on the Northwest corner of Mears Park, in the Park Square building.  The Grand Opening is tonight at 9pm.  If all goes as planned, I'll be there as well.

Hope to see you there!

And when I say paper, I mean the Pioneer Press of course (is there another paper?).

Yours truly is quoted in the business section about the extremes in the real estate market.  Christopher Snowbeck has been chatting with me for the last few weeks about what's happening in the market and last Wednesday, they tagged along for a showing I was on.  Always fun to be in the paper, especially when the pictures make me so darn good!

I've been thinking about this question a lot lately, and I think I've put together a good list for discussion.

Rentals

It's no secret that our real estate market is down from the highs of 2006-7, the same time when Downtown saw an explosion of new residents.  As we begin to enter that 3-5 year move cycle as we've seen in the past, these new owners are now stuck.  Some are losing their condos to foreclosure, some are selling "short", while others have decided to wait it out.  Then there are those who need to move on, but don't want to damage their credit.  This is why we are starting to see more rentals in condo buildings.  Not all of the buildings in downtown allow rentals, but for those that do, the HOA (Home Owners Association) will need to start making some decisions on how to best manage the increased amount of rental in the building.

Renters sometimes get vilified in condominiums, as the easy scapegoat for all the perils in the building.  I've seen some home owners act just as bad, if not worse than some renters.  But I'd say for the most part, a high percentage of renters are not good for a condo building.  They just don't have the same vested interest as home owners do.

The knee-jerk reaction to increased rentals is to outright ban them, and in my opinion that's the worst decision a HOA can make.  It's one thing if the building you bought into had always banned rentals, you bought it know that.  Others will add a certain percentage that caps the amount of rentals in a building.  This too is problematic.  What happens when you've reached the cap?  It's like banning rentals, now you will get home owners desperate to get out, pleading at board meetings to allow their place to be rented.  Then does the board cherry pick units that will be allowed to rent?  Or will they tell the home owner who wants out they are out of luck?

In my opinion, the best option is for a hefty move-in fee.  It's applied equally to home owners and renters, but if the dollar amount is high enough, renters won't pay it, and the home owner will have to chip in.  This will then make the seller think twice if this is the best possible solution.

Foreclosures

Foreclosures are tough on a HOA in a few aspects.  First, the loss of income to the building.  When a home owner defaults on their mortgage, most forgo paying the association as well.  If enough units in a building are in default, it can effect cash flow.  Second, When the bank takes over, the HOA only gets a portion of the owed money.  Usually just what's is owed AFTER the sheriffs sale.  Third, when the foreclosed home finally sells to a new owner, it usually has a shiny new low price - further dragging down values in the building.

My only advice to condo associations is to not foreclose on liens that are filed on the association's behalf.

Financing

If you remember the title of this post, you might be wondering why I've included financing in the list of challenges facing condo associations.  It's because most of these condo building could do a little leg work and get their HOA approved for FHA financing.  It would be a huge step in the right direction to ease the burden facing buyers.  Which in turn would allow more potential sellers to sell!

Capital Improvements

It's a tough time to spend money as a fiscally responsible home owners association, but if you let your building slip, the buyers won't come.  How long has it been since the lobby has been refreshed?  How about the halls?  Just as a buyer is turned off with a condo that hasn't been remodeled in 15 years, buyers are turned off when they walk into a dated building.  Always having salability on the radar will help immensely with property values and owners pride.

What do you think is a pressing issue in the coming year for condo associations?  Let's discuss below.

Two parts of juicy gossip for you...  First off, I hear that the idea of a hotel is not exactly off the plate.  They may be leaving room on the site for a second phase!  When the condos went away, I really liked the idea of a mixed use site, with the Hotel, apartments, and Lund's.  So when I heard a while back that the hotel had dropped out, I was pretty bummed.

The second bit of news is about the Section 106 process the Penfield was going through.  It's my understanding that the the parties have signed off on an agreement on how much of the Public Safety Building would be saved along Minnesota.  If I were placing bets, I'd say it's two bays back.

Once I can get more info on the outcome, I'll post up a new rumor report.

Information contained in this post is gathered from multiple sources, some of whom wish to remain anonymous. At times, I have to bridge the gap of information and make assumptions to make the post work. I do my best to fact check, but remember I am a realtor not a reporter.