6. HRSR 10-01-2012 <: l REQUEST FOR ACTION
River
TO ITEM NUMBER
Housing Redevelopment Authority 6.
AGENDA SECTION MEETING DATE PREPARED BY
October 1,2012 Annie Deckert,Director of Economic
Development
ITEM DESCRIPTION REVIEWED By
Granite Shores Presentation by Jim Soderberg&Associates Cal Portner, City Administrator
REVIEWED BY
ACTION REQUESTED
None.
BACKGROUND/DISCUSSION
In April of 2012, Granite Shores, formally known as The Bluffs,in downtown Elk River was purchased
by Jim Soderberg,president of Soderberg Apartment Specialists in Brooklyn Center. The mixed-use
building was purchased from Minnwest Bank and has 67 residential units and roughly 10,000 square feet
of commercial space. When purchased, only 25 of the 67 units were complete. Since then,Mr.
Soderberg has finished all of the units with granite counter tops, stainless steel appliances and upgraded
cabinets and lighting.
Apartments rent from approximately$900-$1,600 and per the recently completed Comprehensive
Housing Market Analysis, are considered luxury apartments. The analysis also indicated the fast
absorption of the units indicate a high demand for luxury apartments in Elk River.
Staff has invited Mr. Soderberg to the HRA meeting to provide an update on the building,and discuss
the status of the apartment units and commercial space. HRA Commissioners are encouraged to bring
any questions or comments they have for Mr. Soderberg to the meeting.
FINANCIAL IMPACT
None.
ATTACHMENTS
• Granite Shores information
Action Motion by Second by Vote
Follow Up
POWERED B Y
N:\Departments\Community Development\Economic Development\HRA to move\Agenda\Year 2012\10-1-12
Agenda\10-1-12 Granite Shores.docx NATURE
9/21/12 Granite Shores Apartment Rentals
GRANITE SHORES 9
633 Main Street
Elk River,MN 55330
Granite Shores
T 1-1369
633 Main Street,Elk River,MN 55330 Map
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Request Come home to luxury living on the beautiful Mississippi
Information
�,_ � w __m m....-. _.. _. SEE MORE PHOTOS
OFFICE HOURS
APPLY NOW!
PRINT A BROCHURE
Mon-Fri:9:00 am-5:30 pm
t_. PET POLICY
Sat: By Appointment
SEE MORE PHOTOS Closed: Sunday
Overview Floor Plans Amenities Photos Map Ratings&Review Apply Specials
Community menit es
Fitness Center Balconies
On The River Near Shopping and Entertainment
Community Room with WiFi Sun Deck on the River
Car Wash Station Heated Underground Parking
2 Elevators Dry Cleaning Drop Off/Pick Up
Other Amenities
Balcony New Washer and Dryer in Unit
Stainless Steel Appliances River Views
Designer Lighting New Flooring
Oversized Granite Countertops Central Air
Stylish Bathrooms New Kitchen Cabinets
Apply Now Map And Directions Ratings&Review s
Facobock Phatos Request In!!oral-Alan
Floor Bans Rini Brochure Specials
Contact Information Office Hours
Phone:763-441-1869 Monday-Friday:9:00 am-5:30 pm
633 Main Street Saturday:By Appointment
Elk River,MN 55330 Sunday:Closed
Management Accounting Software Systems Owner Portal Mobile Site Terms of use
www.graniteshores.com/Apartments/module/amenities/property[id]/42593/ 1/1
9/21/12 Granite Shores Apartment Rentals
GRANITE SHORES A
,yp ECJf[I"Jt # ;1,i.: S,l 633 Main Street
Elk River,MN 55330
C 11t Shores 1;869
633 Main Street,Elk River,MN 55330 tHap
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nformation
SEE MORE PHOTOS
APPLY NOW!
�°'€ OFFICE HOURS
f PRINT A BROCHURE
Won-Fri:9:00 am-5:30 pm
PET POLICY
Sat By Appointment
SEE MORE PHOTOS Closed: Sunday
Ocw;rOew Floor Plans Amenities Photos Map Ratings&Review Apply Specials
One Bedroom Two Bedrooms
Move-h Date 09/26/2012
NAME RENT* DEPOSIT* BED/BATH SQ.FEET** LAYOUT SPECIALS
Plan F $939 - $979 $300 1 bed/1 bath 804 Sq.Ft. , Request Info
Plan K $941 - $981 $300 1 bed/1 bath 737 Sq.Ft. Re uest t€ifo
Plan C $1021 $300 1 bed 11.75 baths 817 Sq.Ft. Re u_est Enfo
Plan I $1149 - $1169 $300 1 bed/1.75 baths 980 Sq.Ft. w, Request Info
Plan J2 $1149 - $1169 $300 1 bed/1 bath 1081 Sq.Ft. . _ Request Info
Plan A4 $1173 $300 1 bed/1 bath 890 Sq.Ft. ee Request Info
Plan B $1199 $300 1 bed/1.75 baths 953 Sq.Ft. Request Info
Plan D2 $1219 - $1239 $300 1 bed/1.75 baths 959 Sq.Ft aQg.uest Info
Plan D4 $1226 - $1246 $300 1 bed/1.75 baths 965 Sq.Ft. Request Info
Plan A2 $1259 $300 1 bed/1.5 baths 890 Sq.Ft. Request Info
Plan D3 $1299 - $1319 $300 1 bed/1.5 baths 1077 Sq.Ft
4 Request Info
$1349 - $1369 $300 1 bed/1.75 baths 1187 Sq.Ft. Request Info
Plan A $1399 $300 1 bed/1.75 baths 1118 Sq.Ft. ..: Request Info
*Pricing and availability are subject to change.
**SOFT listed is an approximate value for each unit.
Apply Now Map And Reactions Ratings&Reviews
Facebook Photos Request Infornotion
Roor Plans Riot Brochure Specials
Contact Information i Office Hours
Phone:763-441-1869 i Monday-Friday:9:00 am-5:30 pm
633 Main Street Saturday:By Appointment
www.graniteshores.com/Apartments/module/property_info/property[id]/42593//is_full_version/1 1/2
9/21/12 Granite Shores Apartment Rentals
GRANITE SHORES -ffi 4 1:869
............. ...... .... ....
633 Main Street
.......— . . , .
Elk River,MN 55330
Granite Shores
T 1/869
633 Main Street,Elk River,MN 55330 Man
Like 45 people like this.Be the first of your friends.
''.-.4."! Live Chat
if .. I
i i , , Come home to luxury living on the beautiful Mississippi.
Request nforination„ ,‘
SEE MORE RICTUS
APPLY NOW!
-' --,• -..'-' ' ‘---- :',----,- -,--' OFRCE HOURS
PRINT A BROCHURE
): ,;ft 41111. ''.J Mon-Fri:9:00 am-5:30 pm
PET POLICY
Sat: By A,opointment
SCE MORE PHOTOS
Closed: Sunday
Overview Floor Plans Amenities Photos Map Ratings&Review Apply Specials
..,..„„_
1 One Bedroom II Two Bedrooms j
Move-h Date 0.9126/2012
NAME RENT* DEPOSIT* BED/BATH SQ.FEET** LAYOUT SPECIALS
Plan L $1206 $300 2 beds/1.75 baths 965 Sq.Ft. ; ' ; Request Info
Plan G $1349 $300 2 beds/1.5 baths 1301 Sq.Ft. , Request Info
Plan J $1384 - $1424 $300 2 beds/1 bath 1091 Sq.Ft. i ' ("10 Request Info
Plan E $1386 - $1426 $300 2 beds/1.75 baths 1097 Sq.Ft. ... ' f) Reguat Info
*Pricing and availability are subject to change.
**SOFT listed is an approximate value for each unit.
Apply Now tvlap And Directions Ratings&Reviews
Facebook Photos Request inforrmtion
Pinnr plans Print Brochure Specials
Contact Information 1 Office Hours
Phone:763-441-1869 '' Monday-Friday:9:00 am-5:30 pm
633 Main Street :: Saturday:By Appointment
Elk River,MN 55330 '. Sunday:Closed
Property Management Accounting Software Systems Owner Portal Mobile Site Terms of use
www.graniteshores.com/Apartments/module/propertyinfo/property[ic11/42593//is_full_version/1 1/1
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Housing Redevelopment Authority:
As you know, we purchased the Bluffs of Elk River condominium project on April 30, 2012.
Immediately after we closed on the property we have implemented and significantly completed
a large scale renovation and repositioning the property now known as Granite Shores-On the
Beautiful Mississippi River.
To date we have completed all construction, remodeling and upgrades in all residential units in
our community. Additionally, we have added luxury amenities such as an entertainment room
complete with an 80 inch flat screen TV, a pampered paws dog wash, and community room
updates and improvements. We are also exploring the potential to add a larger deck to allow
street side residents greater access and enjoyment of the Mississippi River.
Further, we have successfully purchased the previously owned condominium units and have
complete ownership and control of the property as a luxury apartment community
We are currently 100% occupied. Our market rates range from $950-$1499. It is apparent that
the demand exists for such housing, and our reception in the market has been phenomenal.
Granite Shores also consists of approximately 10,000 sq. ft. of retail space. Immediately upon
purchase we engaged Lisa Christianson of Christianson and Co. to represent us in leasing out
that space.
Over the past five months we have had a few interested parties inquire about the retail space.
However, the retail component of Granite Shores is faced with many challenges. Consistently
our feedback from prospective tenants has been concerns over the availability and proximity of
parking that is required for a business to be successful in this location.
To mitigate that concern, we have begun construction on approximately 2000 sq. ft. as Granite
Shores Office Suites. We believe that this use attracts small business owners in need of a
designated office, but does not require substantial parking resources such as a coffee shop or a
similar consumer driven business.
We believe that 2000 sq. ft. is the maximum allowable space for this use, as the demand simply
does not exist for an additional 8000 so. ft. of office suites.
As we evaluate our options for the property we are convinced that for the long term success of
Granite Shores, and continued re-vitalization of the Downtown Business district, the highest
and best use for the remaining commercial space is to convert it into more luxury residential
apartment units.
By doing this we eliminate our demands for on-street parking along Main Street, and provide
less space to be absorbed for retail and office tenants in the Downtown Business District. This
provides other commercial owners the benefit of less supply and moves commercial traffic to
the district's center where parking is more plentiful.
We have demonstrated our commitment to the City of Elk River by trying to support local
business. We believe in and feel part of the community. Granite Shores is filling a need for our
residents, and we feel that Granite Shores can provide what the business community is in need
of; customers.
As detailed in the Comprehensive Housing Market Study conducted by Maxfield Research, "Low
vacancy rates in all general occupancy rental products indicate pent-up demand for additional
rental housing in Elk River." It is further detailed in the Housing Needs Analysis that market
rate rental is the highest demand. Granite Shores recent history is proof of this need.
By converting the additional 8000 sq. ft. into approximately 8 apartment units we fulfill some of
the need the city has for rental housing and establish a well qualified consumer within close
proximity to the Downtown Business District.
Attached is our Summary of Findings that details our resident profile. In general our residents
have disposable income, a high household income, and have previously lived, work or have
family within 15 miles of Elk River. Our residents are ideal consumers of local business
products and services.
With the current availability of retail space, and a constrained housing and parking supply, we
feel that we encourage the growth of the Downtown Business District, not by providing
additional retail space, but by providing the consumer that will support existing business and
foster the growth and demand for new commercial tenants.
Granite Shores Summary of Findings
• There is a slightly higher amount of female renters than males
• Ages range from 22—79 years-old with the average age of 43 years old
• Renters are typically moving for geographical purposes—either a job relocation within the area or to move
closer to family members
• The majority of renters are single
• Average household income per month amounts to$6585
• Over 73%of current residents who have signed a lease are from within a 15 mile radius
• As we can see the current residents and general inquiries find us from similar sources
o Internet listings are the main source of traffic—Mainly For Rent,Apartment Guide,and Rent.com
• I will be working today on utilizing our internet listings!
o The second source of traffic of current residents comes from the Star News at 21%and by drive-bys and
seeing the banner at 21%as well
Charts Below
Source of Leads for Current Renters
•Banner •Drive By • Paper-Not Specified
•Star News ■Re nt.cor • Property Website
•Apt Guide •Forrent Online -Not Specified
11%
5% 16
16%
5%
5%
, .
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•, 7 z' •: ••
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1115.%
•I7itt -
4
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Source of Leads from General Inquiries
TV Commercia
6% Granite Shores
p Website
-" - For • -r 4%
���,,
w k ice..The Star
Newspape ment Rent.com
1% Finder 11% MyNewPlace
The Shopper Did Not Recall 59' 8%
Rentals.com
Newspaper What Paper 1% Could Not Recall
3% 2% 4%
Resident Demographics
Renter's Previous Location
Woodbury - Ramsey
6% 3o%°
Princeton
6% `.
Out of
State Within a 15 Mile
6% Radius
7396
Duluth Zimmerman
390 11% Elk RlVer q?..,
/Mt" Monticello
Coon
Rapids El' 3%
3,f° 69°
Brooklyn Park
3%
Renter's Reason for Moving guildinga
t.-- .. •o- ";;_ House
-- Needs a 7%
Change
10%
Job Change
28% /_Moving Closer
to Family
17%
Getting
i h -a_ ^= Getting
Married
Divorced
" = 17% , 'oving out on 10%
Their Own
4%
Renter by Gender
Male
42%
Fema
58%
Renter by Marital% DivorIII
'j 1896