About Minneapolis' Northeast Minneapolis

Cache at the Casket Arts Building in NE Minneapolis

You won't want to miss the "Cache at the Casket" art crawl, going on this weekend at the Casket Arts Building, 681 17th Avenue NE, in Minneapolis.

Yesterday evening, I had the good fortune to run into friends and clients at the event. New Madeline Island summer resident Matt Sturgis was there, exhibiting his bronze sculptures in studio 207. And I ran into friends Todd Shipman and Brad Bernstein on the second floor, where Brad was displaying his custom jewelry (Todd is a fellow Twin Cities Realtor with Sotheby's Real Estate).

[Bronze sculpture by Matt Sturgis, on display at "Cache at the Casket" Exhibition, November 4-6, 2011]

You'll also find delights on display such as Cecelia Schiller's custom wood carving and "automata" kinetic artworks, Amy Baur and Brian Boldon's glass panel and ceramic tile masterpieces at InPlainSight Art, and the photography of Peter Caley.

The historic Casket Arts building is a remarkable space for artists. The building dates back to 1887, making it one of the oldest structures in the Minneapolis and Saint Paul area. The building was formerly home to the Northwestern Casket Company and was converted to its present use in 2006.

Real Estate Market Update: Duplex sales in NE Minneapolis

Sale Price down 24% and Sales Volume down 49%

Northeast Minneapolis, February 2008

Northeast became one of the hottest markets in Minneapolis during the "boom" appreciating and average 62% since 2000. Given the relatively modest home vales and it's proximity to the two downtowns, the University, major industry and business centers, Northeast is a natural rental area. Since it's development in the first half of the 19th century, it's been a solid residential neighborhood, with strong ethnic, and working class, roots. It's storied reputation as a "pub crawl" destination has drawn attention to the area in ore recent decades. A plethora of neighborhood pubs have kept the local history and traditions alive and kicking.

Duplexes are a common "gateway" property into the investment real estate game. With it's wealth of duplexes Northeast, or Nord'east as it's affectionately referred to, could be considered a real estate investors play ground.

Buying duplexes is always a little tricky, and many investors make the mistake of associating the duplex with the single family home market. Duplexes, and other investment property needs to be valued by 1) it's cash flow, 2) appreciation potential, and 3) tax advantages, in that order. However, as property values rose in that past 5-10 years duplex prices rose as well. Duplexes had been selling for a lot more than their cash flow would dictate, assuming that the potential for high appreciation warranted the high price tag.

In 2006 buyers noticed that appreciation potential was weakening, and the prices sellers were asking were too high, in light of that. Sales volume dropped from 104 units in 2005 to just 58 units in 2006.

By 2007 sellers had come to the table and started being more realistic about the value of their duplexes. The average sales price in 2006 was a strong $250,707 in 2007 just $185,774.

Since 2004 the average sales prices has come down 24% and the number of sales has dropped 49%. Given the fact that these prices are just about at a "break even" price (assuming 75-80% financing) sales will continue to focus on the highest quality of the lowest priced properties.

Cash flow is king in the duplex market, as in any investment property type. If you can find a property that cash flows, it's almost a sure bet that it's going to sell.

* For more information on buying investment real estate, call me, Ben Kolkman, GreatMinneapolis mobile (612) 599-4161

I think we all would agree that volunteering and helping those less fortunate than ourselves...or doing something for the greater good....is a good thing.

Often I've thought....and maybe you have too, "I'm just too busy to help". That's why I got involved with efforts in my own backyard...Historic Northeast Minneapolis.

The Northeast Lions Club, of which I'm a member, goes out 1 day per month to deliver for Meals on Wheels...our local chapter is called "Dinner Bell". We deliver hot meals....low sodium...when requested..meals to the elderly, handicapped, and shut-ins. Often short volunteers...our 1 day a month may turn into 3-6 days per month.

There are a few reasons I like this cause...1) it takes just an hour out of my day at lunch. 2) It's helping those in MY neighborhood stay in their homes. 3) It's working proof that volunteers can do it better, faster, & cheaper than another high cost government program. 4) The recipients really appreciate our effort....especially on snowy days like today! :)

We can all do a little something......in our own backyard.

Rick Claydon

Claydon Family Financial