CEDAR RAPIDS, Iowa (KCRG-TV9)- A developer is bringing high-end condos and apartments to the edge of downtown Cedar Rapids. But is there still a market for luxury housing downtown with the prices to match?
Hobart Historic Restoration is starting the newest upper-end downtown project in the Kingston Village area on the west side of the Cedar River. The Metropolitan, 450 First Street S.W., will be a $11.2-million dollar project with 13 large condos, 20 apartments and about 10,000 square feet of space on the ground floor for retail or commercial businesses.
Not too many years ago, economic developers in Cedar Rapids complained about a pent up demand for downtown housing and not enough choices.
The groundbreaking for The Metropolitan project Wednesday morning is yet one more sign of how things have changed.
Scott Olson, a Cedar Rapids city council member and commercial realtor, estimates there are probably 1,000 housing units in either the core downtown area now or the nearby surrounding areas. And he believes there may be another 500 housing units in the works.
“The good news is every project built so far is full and there’s people looking at these new projects under construction and I think there are five projects under construction now between the river and 6th Street west,” Olson said.
Olson said developers, at least so far, have done a good job at not overbuilding or saturating the market.
He notes many of the downtown housing projects range in size from a handful of units to no more than a few dozen. That’s helped keep demand and prices in line. Developers are also responding to the demand for luxury rental housing and a softening of condo sales by building more units for tenants.
Rental units at The Metropolitan will range in price from a low of $850 a month for studio units to $1,350 for the largest units. Condo prices will range from $400,000 to $600,000 or perhaps higher based on amenities.
The nearby Mott Building, done by the same developers, will open in about two months.
Josh Hobart, project manager there, said the rental prices for apartments will run about the same.
Hobart said he too doesn’t see a slowing in demand by either young urban professionals who work downtown or older couples who want a retirement residence with less maintenance.
But developers are aiming at different segments of the market now with new offerings downtown. Some units, especially in the NewBo entertainment district, probably appeal more to those who want constant nightlife. Others farther away are aimed at those who want to live downtown but also have a little more space.
“There are people who want to be more in the action and there’s more action now across the river (in NewBo). But there might be people who want to be close to it, but not in the dead center of it,” Hobart said.
Hobart said with four of 16 units at the Mott Building leased, he’s not worried about marketing the housing to new tenants. He’s had some inquiries about ground floor commercial space but says that always takes longer to fill.
Work on The Metropolitan project in Kingston Village was supposed to start several months ago but ran into some land title issues. Developers say they are rushing to meet an original January 2017 opening date.