by Ben Ganje
on Saturday, October 6th, 2012 at 12:25am.
During the boom of the market…
Nothing was going to stop the train of development that seemed never ending in downtown Minneapolis in the mid 2000s. Across the skyline, cranes dotted the urban landscape. They were a symbol to everyone that something was happening on that given lot in the city.
Enter the IVY Hotel & Condos which began marketing during what some would consider the crest of the wave in Minneapolis urban development during the last decade.
Once the project was originally put on the market units were snapped up at record pace. Rumor on the street was that in a matter of weeks 90% of the units were either reserved or under contract. Construction on the tower began in earnest. Then the correction started..
Suddenly all those buyers that signed a contract during the peak of the market weren't so excited about closing on what was then considered an over priced condo. The overly leveraged developer wound up giving the unsold condos back to the group that financed the project. A complicated legal battle ensued around the group responsible for the financing the project. The already functioning hotel, spa and restaurant went into receivership.
For years the unsold condos sat vacant while the rest of the building functioned. In 2011, with the objective of trying to generate some cashflow from the vacant units, an effort was under way to lease the condos until the legal proceedings were over. In short order the luxury units quickly leased out during the winter months. Renters had no problem paying anywhere from $2000-$6500/month to live at the IVY Condos in Minneapolis.
Fast forward to October of 2012 and the unsold condos are back on the market. I recently brought one of my Buyer clients through and was very impressed with the layouts, views and most importantly fit and finish of the units. Prices start in the mid 300s and go to well over $1.5MM. I anticipate based on the lack of inventory that the remaining units in the buliding will sell fairly quick over the next 10-12 months.