Redefining luxury by Meghan Thompson Attempting to grab a quick drink on her way out of town, Madison resident Melissa Gauger stops at the Open Pantry on University Avenue to buy a soda. The OP is a common stop for Madison residents with its convenient location and friendly greetings from the counter worker, who seems to be the Pantry’s only employee. But when Gauger stops at the front door on this trip to the OP, she is not greeted by the friendly counter worker or sticky floors. Rather she is met by a towering, copper-topped building and an engraved stone reading,“The Aberdeen”. The convenient OP has been torn down to make way for the massive new apartment complex that towers over the adjacent and once trend-setting, La Ville. The building brings a new type of luxury living to the downtown area that is a far-cry from run-down student housing, and it’s just a glimpse of the type of urban redevelopment that has become the latest trend in Wisconsin residential real estate. Madison Redevelopment Todd McGrath, president of McGrath Associates, appears to be Madison’s go-to-guy when it comes to downtown real estate, seemingly single-handedly redeveloping many of the residential areas located on and around Capitol Square. With his most recent projects including Capitol Point, a $30 million, 64-unit condominium unit, and 4th Ward Lofts, a 75-unit condo complex, McGrath has been credited for sparking the trend of high-end condo units in the downtown area. Pricing for 4th Ward Lofts starts at $150,000 and goes up to $395,000, while Capitol Point ranges from $200,000 to $700,000. But McGrath’s latest endeavor manages to surpass even these real-estate luxuries. Located on the 300 block of West Wilson Street right on Lake Monona, Nolen Shore is in a league of its own when it comes to luxury living in Madison. The development features a row of townhouses along Wilson Street with an 11th level condominium building at the end of South Hamilton Street separated by a landscaped terrace. Although the building is not scheduled to be completed until 2006, the sketches for Nolen Shore are enough to make one stop and look in awe. The wall of oversized panoramic windows that make up one side of the building, in combination with the iron supports of the terraces, is a departure from the brick-and-mortar structure of older buildings around the Square. Nolen Shore’s condominium amenities, which include a heated parking garage, an exercise room, private terraces and guest suites, signal a new trend toward luxury. Unfinished units start at $250,000. City Demand McGrath believes his redevelopment projects will contribute to the city’s long-term economic situation. Luxury condominiums — sprawling upward rather than outward – increase property values by making more efficient use of limited urban space. In addition, constructing compact community housing units creates more demand for existing businesses as well as a desire for new things to see and do. Yet while such buildings are able to create an increase in commerce throughout the city, the condominiums themselves would not thrive without initial demand from residents. McGrath believes that real estate moves in cycles. Decades ago, many people lived in the city, then migrated to the suburbs while continuing to work downtown. Now more people are interested in working and living in urban areas, he says. According to the National Association of Realtors (NAR), more condos were sold in 2003 than in any other year, the eighth consecutive volume record. The rising price of condominiums in Madison reflects changes in the national market. The NARreports that the median price for condos ended at $174,700 in the final quarter of 2003, compared to the midpoint price of a single-family home of $171,600. Trend Demands The trend toward high-end condominium living is not driven by a specific demographic but rather demand from a variety of residents looking for low-maintenance living in convenient, urban locations within walking distance of their offices and after-hours entertainment. Empty-nesters and retirees are drawn to condo living because they are lured by the attraction of living in a cultural center. Young people seek condo living for the same reasons. With no yard to mow or monthly rent to pay, condo-dwellers are able to move around freely. Young professionals living in condos can leave for business easily. “Young people like condo living, it is very carefree,” says Nancy Benszchewal, broker associate for Restaino Bunbery and Associates. “That is what makes downtown condos attractive.” Stone House Although developers and real estate whizzes believe that the luxury condominium boom will cure the city’s economic woes, there are others who worry about the direction the city is headed. There are those people who would like to experience the excitement and convenience of living in the downtown area without the hefty price tag of a luxury condominium. Madison seems to be divided between high-end condominium and apartment buildings and decaying student houses and flats. Yet people looking for something in between often struggle to find a place to call home. Rich Arnesen, vicepresident and co-owner of Stone House Development, Inc., believes this saturation of high-end condo complexes could harm to the city if it denies many people housing. He hopes to capture underserved market with more affordable redevelopment projects. “For the downtown area to continue to thrive, there needs to be a variety of housing options. Up to now, the only owner-occupied housing downtown has been for the wealthy,” Arnesen says. To counterbalance the abundance of high priced living space, Stone House Development has proposed a 60- to 70-unit of owner-occupied condos with first-floor commercial space for the corner of South Butler and East Wilson Streets. Fifteen to twenty percent of the condos will be affordable to people who earn 80 percent or less of the county’s median income. Arnesen adds, “We will target the remaining units at a lower price point than most of the luxury condos who have been built downtown.” The Madison Mark, the Stone House’s development on the corner of King and Wilson Streets, takes the same approach, featuring a mix of residential and retail space with an affordable rent program. West Bend While Madison’s developers continue to bring luxury living downtown area, some developers are building elsewhere. With a population of only 28,152, West Bend, located 30 minutes outside of Milwaukee, is embarking on a downtown revitalization that would rival that of bigger cities. To revamp West Bend and expand its downtown area, the city plans to redevelop real estate located around the outside of the existing city center. The project consists of three separate construction sites. Along the Milwaukee River, 900,000 square feet of industrial space and a train switching station will be converted into residential condominiums and apartments, office and retail space, a home for the YMCA and a performing arts center. To the west of the river, an outlet mall will be demolished to make way for a convention center, upscale hotel,= and restaurants. When the project is complete planners the area will house 466 condominiums ranging in price from $160,000 to $360,000, as well as 50 apartments and more retail and office space. Merging residential and commercial space is a strong attempt to draw more people from city suburbs and get business travelers to stay in the downtown area. “You’re going to see a very strong downtown community. You’re going to see West Bend as a destination spot,” Mayor Michael Miller says. Trend continues Today, one in six Americans lives in a community living space, which include co-ops, condominiums and other forms of housing. The NAR estimates that number will increase to represent one in three Americans. But while the NAR believes the condominium trend will continue to thrive for years to come, the outlook for the market in individual cities is unclear. In Madison, much of the city’s unique charm comes from its quaint buildings and businesses. Yet with the skyline rapidly evolving to include less-modest style housing and more high-rises, city planners worry about the changing face of the city and the market outlook for such developments. “There is a lot of good housing, but residents may need something else,” says Senior Planner of the City of Madison, Department Planning and Development Mike Waidelich. Although urban living promotes an entertaining and cultural lifestyle with a different restaurant on every corner, it does not always allow large corporations or other businesses that could create jobs to settle in the city, creating jobs for everyone. And for a city that has become known for its many parks and bike trails, the resurgence of inner city living and downtown renewal has some planners worried about the abundance of urban development and the space it takes away from building more of the outdoor recreation areas that may be important to some residents. The city does not possess the hurried, hustle and bustle mood like that of Chicago or New York and for the most part, it shouldn’t. Much of the attractiveness of Madison is derived from the city’s laid-back cultural atmosphere and variety of things to see and do. Many residents do not wish to witness the death of the old Orpheum Theater or the restaurants that regularly serve avocado and peanut butter sandwiches to make way for these new high-end complexes. To thrive, these building should embrace the atmosphere of Madison rather than make it something it’s not.close this window to return to CURB |
