Flood of units with seven-figure price tags are inundating downtown Minneapolis.
Minneapolis–based Alatus LLC had been working for years to build Alia, a 40-story condo tower just over the Third Avenue Bridge from downtown. But in September, the developer unceremoniously pulled the plug on plans for the 214-unit project.
Principal Bob Lux says going ahead with the project would have put too many condos priced over $1 million on the market. Yes, you read that right: over $1 million. The competing Eleven condo project, developed by Minneapolis–based Ryan Cos. US Inc. and Edina–based Arcadia LLC, is under construction; the cheapest homes in the 118-unit complex are $900,000. The RBC Gateway project at Washington and Nicollet, which combines office space with a Four Seasons Hotel, is slated to include 31 high-end condo units. Lux says all of those will be priced north of $1 million as well.
“Virtually all of their units are priced over $1 million,” Lux says. “We had 50 units that were over $1 million … if we could have started [construction] right away, it would have made all the difference in the world.”
Alatus secured city approvals back in 2016, but a group of neighbors sued the developer and the city over the scale of the project. While Alatus ultimately prevailed, the litigation delayed the project for nearly two years.
“It was a frivolous case. It delayed us to the point that others got into the market,” Lux says. “It’s never smart to be in a condo market where there’s too many units.”
Not long ago, there was no such thing as a $1 million condo in Minneapolis.
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