The ongoing project of converting the downtown Lawrence apartment building, 800 Lofts, into condominiums is making significant waves in the local real estate market. Managed by Lawrence real estate agent John Esau on behalf of local businessmen Doug Compton and Mike Treanor, the project has seen remarkable success, with 52 of its 55 apartments already sold and converted into condos and the remaining three units expected to sell soon. This five-story building, located at Eighth and New Hampshire streets, signifies a broader shift in real estate trends, reflecting changing consumer preferences and urban housing needs.
High Demand for Mixed-Use Living
Esau was initially tasked with determining if there was sufficient interest in converting the 55 units from traditional apartments to condominiums, despite the fact that potential buyers would need to pay over $200,000 for a one-bedroom unit. This challenge was compounded by the absence of any garage or dedicated parking spaces, leading residents to rely on public parking instead. However, the high demand confirmed Esau’s predictions and illustrated a broader consumer trend towards mixed-use living, where residents can work, live, and play in the same vicinity.
The success of 800 Lofts is particularly noteworthy in a local context where apartments have traditionally been more prevalent than condominiums. In the early 2000s, the Hobbs Taylor Lofts were developed as condominiums, but subsequent large residential projects like 901 New Hampshire, 888 Lofts, and 800 Lofts were initially designed as apartment complexes. The current shift towards condos is not only creating new residents but also attracting new financial investors to the district. Many of these investors are purchasing units through limited liability companies (LLCs), likely viewing them as a strategic investment.
Investment and Short-Term Rentals
A significant portion of the condos are being utilized as short-term rentals, leveraging platforms such as VRBO and Airbnb. This trend is taking advantage of downtown Lawrence’s appeal to tourists, further contributing to the vibrancy and economic activity in the area. Esau’s observations indicate that a large number of buyers have connections to the University of Kansas (KU), with many condo owners spending significant time in Lawrence due to their children’s education at KU or simply out of a desire to maintain ties to the university as alumni. This has proven to be a substantial draw, particularly for those seeking properties they can visit frequently without the hassle of hotel bookings, which tend to be scarce on weekends.
The trend towards investment and short-term rentals not only enhances the economic vitality of downtown Lawrence but also supports the city’s broader hospitality sector. Investors leveraging short-term rental platforms provide additional accommodation options for visitors, further boosting local businesses and tourism. This dynamic underscores the strategic value of downtown living spaces in enhancing the overall economic and cultural landscape of Lawrence.
Changing Demographics in Downtown Lawrence
An emerging trend in downtown Lawrence is the changing demographic, with many buyers coming from west Lawrence and opting to downsize from suburban homes while still preferring ownership over renting. This shift is likely to lead to an older demographic in downtown areas, especially with new significant housing projects focusing on residents aged 55 and older who meet certain affordable housing income guidelines. Developer Tony Krsnich, known for his work in the Warehouse Arts District, is behind a 50-unit complex near 11th and New Hampshire targeting residents aged 55 and older. He is also considering a similar project across the street, though this plan has yet to be finalized.
These projects targeting an older demographic are expected to further transform the landscape of downtown Lawrence, making it more inclusive and diverse. The presence of significant housing projects catering to the 55-plus age group signals a broader trend of urban renewal and demographic diversification. As more people from different age groups and backgrounds move into the downtown area, it will foster a more vibrant, interconnected community that benefits from varied perspectives and experiences.
Pricing and Affordability
The 800 Lofts offer a variety of units, including studio apartments priced at around $175,000, one-bedroom units at approximately $230,000, and two-bedroom units approaching $325,000. These prices include all taxes and maintenance costs for the unit, as well as a monthly homeowners association (HOA) fee ranging from $300 to $400, depending on the size of the condo, covering shared space maintenance. Despite higher prices per square foot than average homes, condos appeal to a growing segment of minimalist buyers who prefer spending on experiences over physical belongings and find smaller living spaces fitting their lifestyle.
The lack of an on-site parking garage did not significantly deter buyers. The building’s proximity to a city-owned long-term surface parking lot next door, with permits available for about $240 annually, helps mitigate parking issues and keeps housing costs lower compared to units in Hobbs Taylor Lofts. These include a parking garage and are frequently priced above $350,000, with some luxury units exceeding $500,000. The more affordable price range for 800 Lofts without a parking garage suggests a potential model for future downtown developments.
Future Development Prospects
The ongoing project to transform the downtown Lawrence apartment building, 800 Lofts, into condominiums is creating a significant buzz in the local real estate market. This initiative, managed by Lawrence real estate agent John Esau for local businessmen Doug Compton and Mike Treanor, has achieved notable success. Out of the 55 apartments, 52 have already been sold and converted into condos, with the remaining three units anticipated to sell shortly. This prominent five-story building, situated at the intersection of Eighth and New Hampshire streets, represents more than just a commercial endeavor. It signifies a larger shift in real estate trends, mirroring evolving consumer preferences and emerging urban housing needs. The success of this project is indicative of a robust demand for condo living spaces in downtown Lawrence. It also underscores a growing trend where urban dwellings provide not just a place to live but a promise of a dynamic lifestyle, shaping a new narrative for city living.