Downtown D.M. condos shift gears to meet rental demands

Posted by Iowa RealEstateRama

July 26, 2007

Sales were cool, but developers found there were plenty of would-be apartment dwellers.

Want to experience downtown living without a mortgage? There are now more options.

Two downtown Des Moines condo projects planned by Precor Realty Advisors Inc. of Oklahoma City will shift direction, with Gateway Lofts becoming apartments and another project becoming high-quality office space.

Two other developers have also switched their downtown projects from condos to apartments within the last year.

Developers decided the downtown Des Moines condo market wasn’t the right fit for their projects, but real estate agents and downtown advocates say the switches aren’t signs of a condo glut.

Lawyer said more people are interested in living in downtown apartments or condos because more people work downtown and more attractions are available - from new restaurants to the new science center and library.

Gateway Lofts was originally planned as an apartment project but was repositioned to condos when condo developments began popping up across downtown, said Jim Parrack, a Precor senior vice president. Purchase prices were to start at $162,500.

The numbers for the first half of 2007, compared with the last half of 2006, reflect “a nice increase in the velocity of sales,” Buckley said.

About 300 downtown condos are listed for sale at about 15 developments, with prices ranging from $85,000 to $2 million, Buckley said. Most are priced between $175,000 and $300,000.

Reporter William Ryberg can be reached at (515) 284-8104

DesMoinesRegister.com

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