Unlock the Potential of Minneapolis Condo Living

Multifamily Construction Dwindling

At a time when multifamily construction is on the decline, leaving potential buyers with limited choices, the four-story Fletcher at Linden Hills emerges as a beacon of hope. The most recent major condo projects in the city, such as the Eleven on the River in the Mill District and Four Seasons Private Residences in downtown Minneapolis, both broke ground in 2019. Since then, the market has seen a shift, with developers focusing more on luxury rentals, especially in the suburbs. During the past year, even rental building projects have seen a significant pullback due to higher mortgage rates and construction costs.

Last week, Housing First Minnesota reported that in November, developers pulled only enough permits to build 196 rentals, a 45% decrease from the previous month. Meanwhile, builders pulled 660 permits for single-family homes, a 15% increase from the same time last year. This year, housing construction has plummeted compared to previous years. In the first 11 months, cities issued permits for 7,700 houses and apartments, about half as many as two years ago. And among this total, only 1,840 are multifamily units, accounting for less than a quarter of planned home building in the metro.

Strong Demand for Larger Units

Steve Sohre, broker/owner of the Realty House, has been marketing the Fletcher project since July. With no new construction in the area for several years, he remains optimistic that buyers will come forward. Demand for the larger units has been particularly robust, with about two-thirds of the penthouse units already reserved. “There’s not much product out there for them. They want something larger. They can’t fit into 1,300 or 1,400 square feet,” he said. “It was a bit uncertain how the market would react, but the appetite is clearly there.”

Ken Raskin and Lynn Lederman are among those looking to make a move. They plan to sell their suburban Golden Valley home and move to Linden Hills to a new construction condo where they currently stand. This shows the allure of the Fletcher project and its potential to attract buyers seeking an alternative to downtown Minneapolis.

Desirable Location and Appeal

Mary Bujold, president of Maxfield Research, a real estate research and consulting firm, believes that despite the challenges facing the condo market, the Fletcher project’s location makes it highly appealing. It offers buyers an option that combines the charm of a south Minneapolis neighborhood with the luxury of upscale condos. This unique combination is likely to attract those who want a different living experience in the city.

The Fletcher at Linden Hills is not just a building; it’s a symbol of the evolving Minneapolis condo market. With its potential to bring a significant number of upscale condos to the area, it could have a lasting impact on the local real estate landscape. As developers seek final approval and potential buyers eagerly await, the future of this project holds great promise.