From Pittsburgh to Los Angeles, the demand for downtown housing has increased substantially over the last five years, and developers are cashing in.
KB Home last year formed KB Urban to build homes in downtown areas. Among its projects is the Residences at the Ritz Carlton in the heart of L.A. Live, a $2.5 billion Los Angeles entertainment district being developed by AEG.
In Los Angeles, the average price of a condo has increased from $250 a square foot in 2003 to $556 this year, said Dale Kemp, executive vice president of KB Urban.
While not a mature housing market, downtown Pittsburgh has experienced exploding demand for its residential properties, said Eve Picker, president of No Wall Productions Inc.
Her buyers increasingly are single females and empty nesters from outside of Pittsburgh.
When Denver developer Dana Crawford started converting old downtown buildings into lofts in 1989, they sold for about $100 a square foot. Today, downtown Denver condos fetch up to $600 a square foot, and it’s difficult to find an old building to renovate.
Crawford, who is known for creating markets where none existed, said people who want to live downtown are looking for a good investment and secure access to their residences. They also want homes that are secure while they’re away and that are within walking distance of dining and entertainment.
Other sessions touched on:
Urban renewal of ski resorts. Michael Berry, president of Lakewood-based National Ski Areas Association, said he expects the industry to surpass 60 million annual skier visits this winter.
“The demographics are favorable,” he said. “The industry is probably in a better position today than it ever has been before.” A record 58.9 million skiers and snowboarders hit the slopes across the U.S. last season.
Panelists focused on the need to keep “warm” beds in base villages, or a viable mix of hotel rooms and nonrental properties.
“We don’t have enough land in the mountains to sell it all off and let it sit empty the majority of the year,” said Paul Mathews, president of Ecosign Mountain Resort Planners in Whistler, British Columbia. “That’s not good for business.”
Replacing Robinsons-May. When Federated Department Stores Inc.’s acquired May Department Stores Co., it closed duplicate stores and left a number of shopping centers with vacant spaces. Those centers have responded by carving the vacant stores into space for smaller tenants, converting it to outdoor retail space, and converting it to office or housing, panelists said.
Tenants that have emerged to fill space have included Kohl’s, Steve & Barry’s University Sportswear, Target and Wal-Mart.
“It’s the most amazing thing to see a Target next to a Nordstrom,” said William Stone, a principal with Excel Realty Holdings in San Diego.
The panelists said Target has generally been better at transitioning into mall settings than rival Wal-Mart.
Staff writer Kristi Arellano contributed to this report.
Staff writer Margaret Jackson can be reached at mjackson@denverpost.com or 303-954-1473.
