From Sam Black @ Twin Cities Biz Journal:

River View Holdings LLC, a Minneapolis-based entity run by Steve Frenz, filed for bankruptcy in U.S. District Court Nov. 13.

Frenz, who is also CEO of Minneapolis-based firm JAS Apartments, announced in 2008 that he planned to develop a 348-unit luxury apartment complex on the site.

According to bankruptcy documents, River View counts its only assets as three parcels that total 2.06 acres. It estimates that the parcels — 110 12th Ave. S., 124 12th Ave. S. and 1102 Second St. S. — are worth a combined $2.95 million. River View lists liabilities of $6.82 million.

(h/t Steve Ladin)

For Minneapolis condo investors, just like the old housing tax credit the unit must be owner occupied.

In case you haven’t heard, the $8000 housing tax credit has been extended until April 30th 2010 (must be under contract by that date) and has also been expanded to include move-up buyers for $6500 giving Minneapolis condo buyers a little more time.

I wrote about the $8000 housing tax credit extension here more extensively over at my primary blog.

Here is a basic break down comparing the old tax credit vs the new tax credit.

If you have any questions, just ask away.

Mill City Apartments is a go in the historic Mill District.

From the Twin Cities Biz Journal – Sam Black

Farmington Hills, Mich.-based Village Green is developing the 175-unit apartment building called the Mill District City Apartments. The complex is located near the Guthrie Theater along Second Avenue South, between Portland and Park avenues.

Hopefully the developer makes the right design to match the historic past and match the future. The City of Minneapolis is obviously heavily invested in the area.

Here are the numbers for condos and lofts that went pending in Minneapolis this past week:

• 20 condos/lofts went pending
• Average pending sales price $146,849 (lowest yet)
• Median pending sales price $153,798
• Days on market 81
• Average price per square foot $143

Takeaways

The lower segment of the market is definitely moving it, meaning what’s going to happen when no more tax credit?

Here are the numbers for pending condos in Minneapolis from October 12th:

• 20 condos/lofts went pending (the biggest yet since I began keeping track)
• Average pending sales price $182,338
• Median pending sales price $182,900
• Days on market 73
• Average price per square foot $183.01

The week was better than most as far as pending sales, still the lower end that is moving.

The Minneapolis Grand Rounds is on the list of ten great American Public Places by the American Planning Association. It is the only national urban scenic byway with over 6400 acres of trails, lakes, parks and recreation.

See the article here.

I missed the one two weeks prior for reasons I have no idea and this past week with flu-like setback but nonetheless here is a little mini market report of condos in Minneapolis that went pending:

• 17 condos/lofts went pending
• Average pending sales price $182,064
• Median pending sales price  $155,000
• Days on market 94
• Average price per square foot $181.14

Takeaways

1. 16 out of the 17 condos that went pending were under $200,000. The one over that went pending at $1,199,000 and was located in the luxury highrise The Carlyle.
2. Days on market squeaked up a little bit from the previous couple of weeks and more condos are selling under the $100k.
3. Price per square foot is also done closer to where it needs to be to keep the market moving.
4. Still haven’t seen the slowdown with consistent amount of pending sales week over week, but if you have a condo over $250k, keep your fingers crossed.

Remember that these are pending sales, not closed sales. Information was used from the MLS.

For now…

Don’t expect this for to much longer as the artificially influenced mortgage rates are only going to rise after the FEDS announced the phasing out of purchasing MBS or mortgage backed securities.

From the StarTrib:

Rates on 30-year home loans dropped below 5 percent for the first time in four months, but still remained above this year’s record low, Freddie Mac said Thursday.

The average rate on a 30-year fixed mortgage was 4.94 percent, down from 5.04 percent last week, Freddie Mac said. The last time the 30-year home loan averaged less than 5 percent was the week ending May 28, when it was 4.91 percent.

Rates hit a record low of 4.78 percent in the spring and remain appealing for people interested in buying a home or refinancing.

On Thursday, the National Association of Realtors said the number of signed sales contracts rose for the seventh straight month in August, as homebuyers rushed to take advantage of a tax credit for first-time buyers that expires in November.

But borrowers may want to consider the Federal Reserve’s announcement last week that it is slowing down a program intended to lower mortgage rates and boost the housing market. Analysts say homeowners who want to refinance mortgages shouldn’t delay.

Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.

The average rate on a 15-year fixed mortgage fell to 4.36 percent from 4.46 percent last week, according to Freddie Mac. This week’s rate on 15-year mortgages was the lowest since Freddie Mac started tracking it in 1991.

The rates do not include add-on fees known as points. The nationwide fee for loans in Freddie Mac’s survey averaged 0.7 point for 30-year mortgages, and 0.6 point for 15-year and five-year loans. The fee averaged 0.5 point for one-year mortgages.

Looking for an affordable condo? Look no further than Reflections which features two identical towers 15 floors high.

The other day I had the opportunity to revisit Reflections Condos located in Bloomington close to the Mall Of America and the one thing I noticed was how affordable it has become. Current pricing is down about 20% from about 18 months ago.

There are currently several units priced under $200k right now featuring 1 bed 1 bath open floor plans with incredible panoramic views of the metro area.

A perfect modern development with floor to ceiling glass windows with views for miles. Reflections offers many state-of-the-art amenities including upgraded appliances, community room, underground heated parking, contemporary lobby, high technology and LEED certified.

What makes Reflections so desirable is the convenience to the light rail with stops right outside the building. Although plans have stalled for the Bloomington Central Station development, the city is highly invested in the area and in a few years it should be developed.

The building is also FHA financing approved.

If you are interested in buying or selling in Reflections, let’s talk it out.