REJ Articles

Minneapolis Short-Term Rental Condos: Here is your one and only option

isaac@drgmpls.com (Isaac Kuehn) — Fri, 20 Oct 2023 10:25:00 -0500

We often meet people eager to buy a condo specifically for short-term rentals. So, here's the deal: The not-so-great news is almost all condos in Minneapolis don't allow it. But don't lose heart—there's one option out there that does. So, it's not all doom and gloom Why Invest in Short-Term Rentals We chat with people all the time who are interested in owning a Minneapolis condo as a second home or what some like to call an "urban cabin." Not everyone's excited about juggling two mortgages—especially now that we've hit the highest mortgage rates since the early 2000s. That's where short-term rentals come in. You get to have your condo and make money from it too. You use it when you want, and the rest of the time, it's making cash for you. Navigating the Condo Association Maze: What You Need to Know Finding a condo that allows short-term rentals in Minneapolis isn't a walk in the park. It's not the city rules that are the show-stoppers here; it's usually the condo associations putting the brakes on your dreams. Remember the 2018 Super Bowl in Minneapolis? The associations bent their rules back then, but that was a golden, once-in-a-lifetime chance. So why are these associations so against short-term rentals? Well, two big reasons. First, they're worried about the "in-and-out" nature of short-term guests causing noise or general wear and tear on the building. Second, financing for the building can get tricky if it opens up to short-term rentals. The Rule Book: Minneapolis Laws on Short-Term Rentals On the brighter side, Minneapolis is short-term rental-friendly on the city level. The basic lowdown is this: As of March 2022, you'll need a specific short-term rental license, including a management plan, liability insurance, and a floor plan posted on your property. The one-time registration fee is just 50 bucks. And remember, only one short-term rental property is allowed per owner, excluding their main home. Read more about Minneapolis Short Term Rental Rules: Click here The Golden Opportunity: Sable North Loop Say hello to Sable North Loop—the lone star in Minneapolis regarding condos that allow short-term rentals. Nestled in the trendy North Loop area, built in 2019, the building boasts 57 units, most cozy one-bedrooms. Sable teams up with Minnesota, a management company that takes care of all the nitty-gritty for you. They manage the marketing, find the tenants, and even clean up after them. You run the show as CEO, while Minnestay handles the rest. They take a 24 cut of the gross rents for their services. So, what can you get at Sable? Think studios or alcoves with at least 450 square feet on the lower end. If you're eyeing a one-bedroom, expect around 650 square feet and prices starting in the high $275,000s. And for those who want to go all out, the top-tier units are where it's at. There are two-level one-bedroom penthouses and expansive two-bed, two-and-a-half-bath penthouses. These include roomy living spaces, high-end kitchens, private outdoor balconies, and jaw-dropping skyline views. For those looking for a condo that they can rent out on a short-term basis in Minneapolis, Sable is your only option. If you are interested in learning more about Sable and their availability, you can learn more here: Sable North Loop So if you're all-in on the short-term rental game, hit us up. We'd love to walk you through the ins and outs of Sable or any other potential opportunities in Minneapolis.

Deciphering Condo Jargon: A Beginner's Glossary

isaac@drgmpls.com (Isaac Kuehn) — Tue, 08 Aug 2023 23:31:00 -0500

Navigating the world of real estate, particularly when hunting for the perfect condo, can often feel like stepping into a new universe filled with unfamiliar terms and phrases. This glossary is designed to break down some of the most common (and confusing) condo jargon, so you can shop with confidence and clarity. Basic Condo Terminologies 1. Condominium: At its core, a condominium, or 'condo', refers to a type of real estate ownership where you own a specific unit within a larger building or complex, along with shared ownership of common areas. 2. Common Areas or Amenities: These are spaces within a condo complex that all residents can use. This can include hallways, lobbies, pools, gyms, gardens and more. 3. Homeowners Association (HOA): This is an organization in a condo complex that makes and enforces rules for the properties and their residents. They collect monthly or annual dues to maintain common areas. 4. Condo Fees or HOA dues: Also known as maintenance or association fees, these are monthly fees paid by owners to the HOA to cover the maintenance of the common areas. 5. Bylaws: These are rules and regulations set by the HOA. They can dictate everything from pet policies to color choices for your front door. Why Understanding These Terms is Crucial For anyone diving into the condo market, a grasp of the foundational terms is essential. Knowing these basic terms ensures are prepared to do the following: Informed Decision Making: Understand what you're agreeing to and how condo living will impact your daily life. Financial Clarity: Get a clear picture of all costs involved, so there are no surprises. Harmonious Living: By understanding and adhering to the bylaws, you can ensure a peaceful coexistence with your neighbors. Advanced Terms for Seasoned Buyers For those who've already dipped their toes into the condo market and are looking for more advanced knowledge, these terms will come in handy: 1. Reserve Fund: A pool of money collected by the HOA, set aside for major repairs and renovations in the future. 2. Special Assessment: An additional fee charged by the HOA, separate from the regular condo fees, to cover unexpected expenses or budget shortfalls. 3. Lien: If an owner doesn't pay their condo fees or special assessments, the HOA can place a lien on their property, meaning the owner will owe money which must be paid off before they can sell. 4. Condo Certification: A document provided by the HOA, which confirms the financial and legal status of the condo association, useful for potential buyers to assess the health of the association. 5. Owner Occupancy Rate: The percentage of units in a condo building that are owner-occupied versus rented out. This can impact mortgage approvals and the overall environment of the building. In Conclusion While the journey of buying a condo can seem daunting at first, equipped with the right knowledge and understanding of the terminology, the path becomes clearer and more manageable. Whether you're a first-time condo buyer or someone looking to make another investment, this glossary will be a handy tool in your real estate toolbox. As you proceed, remember to always seek expert advice when unsure and enjoy the process of finding your new home or investment property.

The North Loop Real Estate Market update (June 2022 - June 2023) and what you need to know as a Buyer or Seller

isaac@drgmpls.com (Isaac Kuehn) — Thu, 27 Jul 2023 09:42:00 -0500

As we reflect on the past year, the real estate market in the North Loop neighborhood of Minneapolis has seen some changes over the last year. Let's take a closer look at the key metrics from June 2022 to June 2023 and what you need to know if you are a seller or a buyer. Important Data Points New Listings: Over the past year, new listings in the North Loop have decreased by 19.4, from 227 to 183. This reduction in new listings suggests a tightening of the market, with fewer properties available for potential buyers. Closed Sales: Closed sales have seen a decrease, dropping by 29.7 from 182 to 128. This decline could be a result of the reduced inventory, with fewer properties available to close on. Median Sales Price: Despite the decrease in new listings and closed sales, the median sales price has seen a slight increase of 2.9, moving from $392,500 to $403,700. This could be a result of the limited supply driving up prices. Average Sales Price: The average sales price has increased, albeit slightly, by 1.0 from $475,975 to $480,507. This further supports the trend of rising prices in the North Loop neighborhood. Price Per Square Foot: The price per square foot has seen a small decrease of 2.3, from $354 to $346. This could suggest that while prices are generally increasing, buyers are getting slightly more space for their money. This figured varies depending on the building/property. Percent of Original List Price Received: Sellers in the North Loop are receiving slightly less of their original list price compared to the previous year, with a decrease of 1.6 from 97.8 to 96.2. This could indicate that buyers are negotiating more aggressively on price. Days on Market Until Sale: The average days on market until sale has increased by 41.4, from 58 to 82 days. This means properties are taking much longer to sell. Data provided by the Minneapolis Association of Realtors What Sellers Need to Know In today's competitive real estate market, sellers must be proactive and strategic to ensure their property stands out. Despite the decrease in inventory, buyers still have the upper hand unless your property distinguishes itself from the rest. The North Loop neighborhood has seen a 41.4 increase in the average days on the market until sale, making it more important than ever to prepare your home for the market properly before you go live. The first three weeks to a month of any listing is the most important time. Once your listing has been on the market for more than a month, the chances of receiving the full price dramatically decrease. Here are five tips for sellers considering putting their property on the market today: Proper Staging: A well-staged home can make a significant difference in how quickly it sells and the price it fetches. Consider hiring a professional stager or, at the very least, decluttering, depersonalizing, and arranging furniture to showcase your home's best features. Deep Clean: First impressions matter. A deep clean before listing can make your home shine and show potential buyers that the property has been well-maintained. Pricing Strategy: With median and average sales prices holding relatively strong in the North Loop, it's crucial to price your home correctly from the start. Work with a knowledgeable real estate agent who understands the local market to set a competitive price. High-Quality Photos and Virtual Tours: In today's digital age, most buyers will see your home online before they see it in person. Make sure your agent uses professional photos, and consider adding a virtual tour to make your listing stand out, which can be done with a short video on Zillow and social media. Be Prepared for Negotiations: Despite the strong prices, the North Loop market has seen a slight decrease in the percent of the original list price received. Be prepared for negotiations and have a strategy in place for handling offers. Remember, even in a market with decreased inventory, preparation is key. By taking these steps, you can help ensure your property stands out, sells quickly, and commands a strong price. What Buyers Need to Know Navigating the real estate market as a buyer can be a complex process, particularly in a neighborhood like North Loop. Despite decreased inventory, which typically indicates a seller's market, the North Loop has seen an increase in the average days on the market. This shift is providing buyers with a unique advantage in negotiations, even in a market that has seen a decrease in supply. Here are five tips for those considering buying a home in the North Loop: Patience is Key: With the average days on the market increasing, buyers may have more time to make decisions. Don't feel pressured to make an offer on the first property you see. Take your time to explore the market and find a home that truly meets your needs. Leverage the Longer Sales Cycle: The longer a property is on the market, the more likely a seller will negotiate. Use this to your advantage when making an offer. Secure Financing Early: In today's competitive market, having your financing in order can make your offer more attractive to sellers. Try to get pre-approved for a mortgage before you start your home search that way you are prepared when the right property comes up. Work with a Local Real Estate Agent: A local agent will have a deep understanding of the North Loop market and can provide valuable insights and advice. They can also help you navigate the negotiation process. In a neighborhood like the North Loop, many sellers are waiting to list publicly, so the right agents will have off-market opportunities to show you. Inspect Thoroughly: With homes staying on the market longer, it's crucial to conduct a thorough home inspection to avoid any potential issues down the line. Don't skip this step in the buying process. The North Loop neighborhood has seen a decrease in new listings and closed sales over the past year, but prices have generally increased. The market has tightened, and properties are taking longer to sell. This could present opportunities for both buyers and sellers, depending on their individual circumstances and goals. As always, understanding the local market trends is key to making informed real estate decisions.

North Loop Green: Minneapolis' Newest Urban Landmark

isaac@drgmpls.com (Isaac Kuehn) — Thu, 29 Jun 2023 10:39:00 -0500

North Loop Green. What you need to know Minneapolis' North Loop neighborhood is about to undergo a dramatic transformation with the construction of North Loop Green, a groundbreaking mixed-use development that is set to become one of the city's largest and most exciting projects. Situated in a prime urban location adjacent to Target Field, home of the Minnesota Twins, and at the heart of Minneapolis' public transit system, North Loop Green promises to redefine the concept of urban living. With its innovative design, stunning views, and a multitude of amenities, this development is set to become a vibrant hub for residents, workers, and visitors alike. A Dynamic Mixed-Use Destination North Loop Green is more than just a building; it's a destination that connects people, fosters social interaction, and provides a conducive environment for work and play. Spanning across a city block, this inspired mixed-use property boasts an impressive range of offerings. At its core is a 35-story luxury apartment tower, set to offer breathtaking views of the Minnesota Twins' ballpark to the south and the iconic Minneapolis skyline to the east. With 450 luxury apartments, this tower will become the never seen before experience for the Minneapolis market. Luxurious Amenities and Unparalleled Views The upper floors of the residential tower will be available for pre-leasing this summer, allowing individuals to secure their spot in this coveted development. Imagine waking up to panoramic views of the ballpark or gazing at the city lights from the comfort of your own home. Residents of North Loop Green will have access to a host of amenities. Including a pool on the 14th floor, fitness rooms, sky lounge and more. A Fusion of Work and Recreation Adjacent to the residential tower, a 14-story glass office building will cater to the needs of businesses seeking a prime location in the growing North Loop neighborhood. Piper Sandler, a leading financial services firm, has been announced as the anchor tenant, further solidifying the development's reputation as a premier destination for professionals. The 14th floor of the office building will feature an array of amenities including an outdoor pool, patio, fitness center, sauna, and more, providing a perfect balance between work and well-being. The skyway connecting the two towers on the 14th level will facilitate seamless transitions between the residential and office spaces. Unprecedented Convenience and Connectivity One of the standout features of North Loop Green is its exceptional connectivity. Situated next to Target Field, residents and employees will enjoy easy access to the Metro Transit Light Rail and the extensive network of bike trails, encouraging sustainable and active modes of transportation. This prime location ensures that everything the vibrant city of Minneapolis has to offer is just a stone's throw away, from entertainment venues and cultural landmarks to renowned restaurants and shopping districts. The Visionary Developer: Hines Behind the innovative design and realization of North Loop Green is the renowned real estate development firm, Hines. With a track record of delivering exceptional projects around the world, Hines brings its expertise and vision to create a transformative development that will shape the future of the North Loop neighborhood. North Loop Green is set to become a game-changer in Minneapolis' North Loop neighborhood. With its striking design, luxurious amenities, and unparalleled connectivity, this mixed-use development will offer an extraordinary living and working experience. Whether you seek the excitement of urban living, the convenience of proximity to public transit, or the joy of panoramic views. If you are interest in learning North Loop Green contact us today and we will keep you updated on the most up to date information on pricing and availability for the project. Visit website northloopgreen.com and the North Loop neighborhood website northloop.org for more information. Get ready to be part of the future of urban living with North Loop Green Photos from Hines.com

A New Dawn for LaSalle Plaza: Minnesota's Iconic Tower Acquired at a Massive Discount

isaac@drgmpls.com (Isaac Kuehn) — Wed, 28 Jun 2023 18:14:00 -0500

Today was a significant time for downtown Minneapolis' real estate as the distinguished LaSalle Plaza, an office tower previously under distress, has found a new owner. The office tower was recently acquired by Eden Prairie-based Hempel Cos. at an astonishing markdown from its previous selling price, adding a compelling chapter to the city's real estate narrative. As reported by the Minneapolis/St. Paul Business Journal Hempel Cos. purchased the property for a cool $46 million, a sharp discount compared to the $155 million paid by the Teachers' Retirement System of the State of Illinois in 2011. The figure may not have been disclosed officially. The sale markets a new dawn Minneapolis commercial real estate investors face as the decline in office property values owing primarily to the rise in remote work and reduced demand for office space. This development could potentially serve as a new beginning for the city's real estate landscape. With many office buildings facing similar predicaments, the sale price of LaSalle Plaza may be indicative of future trends. The building's vacancy rate skyrocketed to over 30 last fall, prompting the landlord to hand the property over to its lender instead of continuing with loan payments. Major tenants, including Rock Bottom Brewery and CBRE left the building, raising the question of whether its longtime anchor tenant, law firm Robins Kaplan, will stick around. Despite the challenges, optimism is high among local real estate aficionados, largely due to Hempel's successful track record in reviving struggling properties. The firm is recognized for redeveloping the former St. Paul Macy's store into retail offices and a Minnesota Wild practice facility, and transforming the old Midland Bank building into the Hotel Minneapolis (now Hotel Emery), among other notable projects. The LaSalle Plaza's future under Hempel's wing may not just mark a new era for the building, but a revitalization of downtown Minneapolis' real estate scene as well.

One-of-kind Historic Minneapolis Loft - Whitney Residence

isaac@drgmpls.com (Isaac Kuehn) — Mon, 05 Dec 2022 12:39:00 -0600

Tour this one-of-a kind 2-story, industrial Minneapolis loft transformation at the Whitney Residence in Downtown Minneapolis. "Featuring a spectacular solarium design to bring the outside into this historic building. Materiality and fine details abound: stained glass and metalwork inspired by the Paris World Fair, exposed brick walls, dramatic lighting, and custom craftsmanship." >>Watch Full Video HERE<< Builder: StreeterHomes.com Architect: PKA Architecture Interiors: MartinPatrick3

Top 5 Luxury Upgrades for Your Minneapolis Home

isaac@drgmpls.com (Isaac Kuehn) — Wed, 26 Oct 2022 14:38:00 -0500

5 Luxury Upgrades for Your Minneapolis Home Try these projects to make your home more convenient and comfortable, as well as improve its resale value Whether spring’s in full bloom or the autumn leaves are beginning to fall, it’s always the perfect time to assess Minneapolis properties and decide which luxury upgrades would make sense. There’s always something you can do to your home to make it more comfortable and to improve its value. Among the many upgrades that make sense are old favorites like bathroom or kitchen remodels. Some upgrades that have become popular in more recent years are improving your outdoor spaces, adding or enhancing a home office, and putting in a wellness room or home gym. While the list of possible upgrades is long, it’s important to zero in on the ones that will give you the most return on investment (ROI) whenever you list houses in Minneapolis for sale. While some upgrades return 100 percent or close to it, not all projects do. If ROI is a big concern, be sure to check the 2022 Remodeling Impact Report from the National Association of Realtors, which breaks down some of the most popular projects and their ROI. Of course, what matters most is your house and what you’d like to have done. You can always check around with friends and neighbors who also own Minneapolis properties and see what they’ve done. Or, if you plan to sell your home soon, you can research current listings and see what upgrades seem to be popular. Housing market The market for Minneapolis properties remains heavily tilted in favor of sellers due to the low inventory of homes. That in turn has kept prices high, and the current median home price is slowly continuing to increase. This is good news if you plan to sell your home shortly, as it’s a reasonable expectation that prices will remain high in the coming months. If you are angling to sell your home soon, it’s a good idea to start researching the best real estate agents to represent you during the process. Having one of the top real estate agents in Minneapolis represent you is wise because they will work hard to sell your home for the highest price possible and in the shortest amount of time. They also should have a good idea of the location and what types of upgrades are expected given the area. Your agent will be a great sounding board for what luxury upgrades you should make. Wellness room One of the most sought-after luxury upgrades that buyers of Minneapolis properties want is a wellness room or home gym. The terms can be interchangeable; the bottom line is that buyers want a room where they can work out or do exercises such as yoga. In the last couple of years, homeowners are looking for ways to keep up with their physical as well as mental well-being, all from the comfort of their homes. A good home gym should be well-lit and have some top-of-the-line workout equipment including a weight machine or free weights, and a machine such as an exercise bike, rowing machine, or elliptical. Be sure to leave enough space for yoga or other activities. Outdoor spaces Another smart luxury upgrade that can help increase the value of houses in Minneapolis is to perk up your outdoor space. This is a popular upgrade as homeowners tend to want to get the most enjoyment out of their space possible. A nice outdoor space is also high on the list of luxury amenities homebuyers are looking for. Although using a backyard in Minneapolis is usually limited to the late spring, summer, and early fall, it’s an excellent feature to have. Some examples of perking up an outdoor space include adding or expanding a deck or patio and installing an outdoor kitchen. And you’ll be glad you did once you start enjoying barbecues and family dinners during the summer months. Plus, a pleasant outdoor space is a great place to entertain friends. Round out the look and ambiance with a gas-powered fire pit, and if you don’t have the room or budget for a permanent fire pit, you can always buy a portable one at a big-box store. A dedicated home office Home offices are on the rise. In today’s landscape, working from home and pivoting to a hybrid work model is becoming the norm. That’s why it’s important for owners of Minneapolis properties to have a productive, functional environment where they can put their best foot forward in the comfort of their own home. Instead of setting up your laptop at the kitchen table or even on the coffee table, it makes more sense to have a dedicated home office in a separate room. That will allow you to have some privacy and peace to focus on your job. A spare bedroom or a room in the basement can easily be transformed into a home office. A dedicated home office should have room for a desk, shelves, file cabinet, a wall hanging or two, and adequate lighting. If there’s room, a sitting area is a nice touch. Curb appeal Although you might not use your front yard as much as your backyard, it’s still important to keep it looking nice, especially if you plan to list your home anytime soon. Curb appeal is a huge factor to account for when listing your home. You’ll want the front yard neat and tidy to give buyers a positive first impression and want to come inside to see the interior. Keep the lawn green and mowed, the trees and shrubs trimmed, and flower beds blooming. Paint the front door a fresh, warm color, and replace the porch light with a new, stylish fixture. Replace the siding Minneapolis properties take a beating from the weather, so consider replacing your current siding with new, fresh-looking vinyl siding. Vinyl siding is relatively inexpensive and can be painted your favorite color. It also has a great ROI, as many homebuyers love the clean, fresh look and easy maintenance. These are just some of the luxury upgrades that make sense for your Minneapolis home. If you are ready to sell houses in the area, let Minneapolis native Isaac Kuehn put his unique knowledge and talents to work for you.