Out-of-state investors zero in on Twin Cities real estate

  • Article by: JIM BUCHTA and JANET MOORE , Star Tribune
  • Updated: January 12, 2014 - 10:17 AM

Cash is flowing into the metro area as outsiders scoop up apartment complexes and office towers that are cheap, at least compared with other cities.

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infoninjaJan. 11, 14 8:47 PM

Not exactly a good thing, especially if these developers only build luxury apartments and condos. They will over build, grossly inflate property values, and shut out the working and middle class. This will lead to another housing bust or crushing cost of living, forcing most people out of the cities. Soon Minneapolis-St.Paul will be labeled as the "most livable cities" in North America, which really means their the next global smash and grab scheme for real estate developers. Livability rankings are nothing more than 21st booster-ism, and the hype usually never matches reality. If Minneapolis-St.Paul were smart, they would limit foreign ownership and development, or pay the consequences of having grossly over-valued and over-strained housing markets like Vancouver and Toronto.

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glgJan. 11, 1410:34 PM

"Few apartment vacancies With rents on the rise and rental vacancy rates at a near-record low of 2.8 percent, the Twin Cities was among the tightest rental markets in the nation last month, according to a quarterly survey of rental markets from Reis Inc., a New York-based real estate research firm. That was the seventh highest vacancy rate in the nation, just behind New York City, San Francisco and New Haven, Conn., which had the lowest vacancy rate (2.2 percent) in the nation." Anyone else confused about what this says?

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corngo4rJan. 12, 14 9:10 AM

Welcome to the big leagues TC's.

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dkallenJan. 12, 1410:24 AM

@glg, they are saying that it is hard to find an apartment in the Twin Cities. This shortage of apartments allows landlords to raise prices. There are only 6 other major US areas with more severe shortages of rental properties.

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supervon2Jan. 12, 1412:03 PM

Many of the housing ordinances restrict the size of the apartments so it leaves only the big units that bring high buck. If we would allow more efficiencies and one-bedrooms to be built you wouldn't see these people and people could afford smaller, cheaper living spaces and save money for the future. But we don't really think about the future, do we?

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pragmatictafJan. 12, 14 1:18 PM

Completely predictable. The same people that lobbied to change the rules, exploited the system, looted the real estate markets and made (stole) billions, resulting in values plummeting, are now back to buy things up at cents on the dollar as the market recovers. Mission accomplished!

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luzhishenJan. 12, 14 8:54 PM

The money flows to the 1-percenters who then have to invest all their spare cash somewhere other than those banks, so they create the bubbles that cause hell for everyone else. When they wreck the economy, the groundlings go bankrupt, giving them more bargains to buy and start the next bubble. When someone in Kuala Lumpur who is actually a front for someone in Beijing loses big at the casino and has to sell at a loss, the next bubble pops. See 1987 for more on this.

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cresecretsJan. 13, 1412:54 PM

This really isn't news. Artis REIT from Winnipeg started investing here a few years back. We've seen Australian money as well as Canadian, as well. Like all second-tier markets, institutional interest ebbs and flows based on the strength of the overall CRE economy, although capital flows continue to globalize.

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twinsajsfJan. 22, 14 9:48 AM

This seems like a great thing for the Twin Cities, attracting new residents and business development, which should increase tax revenues and other amenities. I also read recently only 30% of the new downtown condos/apts. are 2+ bedrooms, and that most are 1 bedroom and efficiencies catering to young, single, millennial professionals, so it sounds like there is a decent balance being struck. If this is not the case, can someone post a link with evidence to the contrary? As a Minneapolis resident, this just seems like a win for everyone, even those of us not in the market for a new downtown condo or such.

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