07/09/2006

Record-Eagle/Tyler Sipe
Margo Abbott laughs with a friend while on the phone at her more than 2,000-square-foot apartment at Building 50 in Traverse City. Abbott moved there last Thanksgiving.

When old becomes new again

New urbanism: Selling a lifestyle

By BECKY KALAJIAN
Special to the Record-Eagle

Record-Eagle/Tyler Sipe
Travis Baird walks back to his Midtown home after an evening jog in Traverse City. Baird is just a five-minute walk from about 47 restaurants.

TRAVERSE CITY — In another, simpler time, people walked to the store and the library, kids played in the street, and neighbors knew one another.

Hoping to recapture the ambience that developers here say was slayed by "carchitecture," or an infrastructure built around the automobile, developers are sinking millions into several new downtown projects.

Called New Urbanism, the idea centers on the revitalization of downtown living and the creation of walkable, mixed-use communities.

Three major examples of New Urbanism stand out within walking distance to downtown: Tim Burden's colorful Midtown development on Eighth Street, Jerry Snowden's Brownstones project on Boardman Avenue, and Ray Minervini's Building 50 residences at the old state hospital grounds.

All three hope to attract residents who embrace the lifestyle of a (nearly) car-free existence. So far, the typical buyer has been over 50, possibly retired and looking for city-centric amenities like restaurants, bookstores and parks within walking distance.

But is there demand in northern Michigan for this kind of lifestyle? Space has been New Urbanism's biggest enemy; northern Lower Michigan has an abundance of it that can be had relatively cheaply, said Stan Tornga, president of the Traverse Area Association of Realtors.

Nonetheless, downtown space moves much quicker than suburban space, he said, augmenting the argument that residents want to be where the action is, not necessarily in the wide-open space of the country.

"It's a better market downtown — the houses move faster because of the laws of supply and demand," said Tornga, who cited days on the market as the best comparison between urban and suburban sales.

From 2003 through March 2006, the average days on the market for homes downtown versus outlying areas was always less. Sometimes comparative homes downtown sold 67 percent faster than their country counterparts, said Tornga.

That is no revelation to Tim Burden and his group at Red Management, who are almost finished erecting their 100-unit Necco-colored neighborhood, Midtown. Burden spent a year conceptualizing Midtown, whose acreage abuts the Boardman River and is a few blocks from downtown. Its core elements — accessibility to shops and parks, entryways that encourage neighborly interaction, and interesting architectural detail — all reflect classic new urbanistic design.

Burden, who is developing five other new urbanist neighborhoods in the region, said that his creations are an antidote to northern Michigan's sprawl problem.

"People move here, buy their 2.5-acre place, drive their SUVs on their way to the big box stores and complain about traffic," said Burden, whose Midtown units have one-stall garages. "We need to get people living in town and cars off the street."

So they are building it, but will they come? Early numbers are good for all three developments, their owners say. Midtown's two phases are over three-quarters sold, Snowden's Brownstones development is about half reserved, and the Minervinis' Village at Grand Traverse Commons residential units for the first phase (17 units) are sold out and 60 percent reserved for the second phase (25 units).

For now, the demand seems to be coming from one group in particular — the empty-nester.

"There is definitely a growing appetite for this kind of housing," said Ken Schmidt of Coldwell Banker-Schmidt Realtors in Traverse City. "People are more active and want luxury without responsibility."

Schmidt said that when condominiums were first built years ago, they were generally in the range of 850-1,000 square feet. Now that number has ballooned to 1,800 square feet and larger, with more expensive amenities like granite countertops and stainless steel appliances, he said.

"People want it and they are willing to pay for it," said Schmidt.

Raymond Minervini, Jr., whose group is rehabilitating the monstrous, 400,000-square-foot building that used to house the old state hospital, said that before they even started renovations in 2002, they had over 50 people make reservations for various spaces there.

"The people who want to live here have appreciation for a place that's different — it's a park-like setting with 300 acres of parkland and has close proximity to town," he said. "It turns out that the original philosophy of 'beauty as therapy' is just as valuable to people today."

Like Midtown, the Village's residential units are rife with architectural details, like exposed tawny brick walls, 11- to 13-foot-high ceilings and mellow wood floors. The Minervinis have also folded a large amount of commercial space into the Village, creating a miniature town-within-a-town feel.

The development is not stopping with the Village, however. As various phases finish, the Minervinis have the capacity to develop up to one million square feet, he said. In its finished state, Minervini envisions a buzzing community that could include hotels, shops, businesses and multi-generational residents.

Buying into Burden's, Minervini's and Snowden's developments does not come cheaply, though the three do say they are advocates of affordable housing and are actively developing for that market as well. Midtown condos begin at $339,000; Snowden's Brownstones begin at $345,000; and building at the Village ranges from $175-225 per square foot.

Like his contemporaries, Snowden believes there is value to what his buyers are getting, citing the quality of building materials and the location of his property.

"People are looking for quality, plus they want to simplify their lifestyle," said Snowden.

And like his counterparts, Snowden's design harks back to an earlier time — an older, "historical" way of living, he said. In particular, the State Street and Boardman Avenue project is modeled after a design he saw in downtown Birmingham, near Detroit.

Though demand has so far been strong for the new developments, pricing and cost of living will be factors as sales continue, said Realtor Jack Lane.

"Downtown, we pay for things that the entire area enjoys — 36 mills vs. 27 mills in outlying areas," said Lane, host of the radio show "Ask the Real Estate Guy."

And even though downtown buyers pay more per square foot than in Acme, for example, Lane estimates the rate of appreciation is still double that of suburban homes — eight percent a year versus three percent, he said.

But in the end, Lane says that urban living appeals to a sense higher than anything money could buy.

"Ask people who live downtown — the lifestyle makes all the difference in the world," he said. "It's the big picture — and if they get it, they are sold."

See related story:

• Location is everything for buyers - July 9, 2006