St. Paul: Downtown Alliance report ranks 10 of 20 office buildings as ready for office-to-residential conversions
Not long ago, the St. Paul Downtown Alliance hired real estate consultants to take a hard look at 20 commercial properties downtown and determine which, if any, would be candidates for conversion from offices to residences, given the drop in office leases.
Gensler, an architecture and design firm, has delivered its findings, and the short answer is at least half the buildings studied are candidates for the residential market. If converted to residential, they could together add some 4,000 new residents downtown.
The new 38-page study delivered by the consultants finds 10 of 20 buildings scored high enough on a 100-point scale to be considered likely targets for office-to-residential conversions, including the U.S. Bank Center on Fifth Street, the First National Bank Building on Minnesota Street and the Park Square Court building by Mears Park.
Six additional buildings scored between 70% and 80% on the Gensler score chart would need some major “compromises,” such as façade replacements, large unit sizes or “less than ideal parking,” to get there, including the St. Paul Athletic Club on Cedar Street, the City Hall Annex building on Fourth Street and 375 Jackson St.’s second building, which sits at 135 Fifth St.
Properties scoring below 70% on the Gensler score chart were deemed unlikely candidates for conversion, including the St. Paul Building on West Fifth Street, the Ramsey County East building at 160 E. Kellogg Boulevard and the Lumen Building’s second tower at 60 E. Kellogg Boulevard.
Gensler studied each building’s interior configuration, including daylight access and the condition, placement and design of the windows, the size and shape of the office floor plates, electrical and plumbing and load-bearing walls. They also looked at the exterior context, such as how pedestrian-accessible each building might be, its proximity to other buildings, access to parking and public transit, and the condition of each façade.
The study estimated that the 10 priority conversions would save 80,000 to 110,000 tons of carbon dioxide emissions annually.
Three-pronged strategy for downtown
Members of the Downtown Alliance have raised the possibility in recent weeks that some structures are so outdated and unappealing to both the residential and office markets that they may need to be demolished. The report does not identify likely targets.
Joe Spencer, president of the Downtown Alliance, called the results of the study encouraging and said in a written statement that they “demonstrate the unique potential we have in downtown St. Paul. Downtown is poised for one of the greatest transformations in the city’s history.”
He added, “This conversion study gives the market a data-based head start to begin conversations around the key role housing can play in reinvigorating downtown.”
The Downtown Alliance — a partnership between City Hall and major downtown employers such as Ecolab and Securian — released a “downtown investment strategy” in March that outlines three priority areas for future public and private focus. In addition to office-to-residential conversions, they include improvements to key streets and pedestrian corridors, and efforts to position some particular development opportunities.
The Downtown Alliance noted construction is already underway on two office-to-residential conversions in downtown St. Paul — one at the former Ecolab University building on Wabasha Street and the other at the Landmark Towers building on St. Peter Street.
Other efforts downtown
Other efforts downtown also are underway.
St. Paul Mayor Melvin Carter has proposed a $1 million investment in permit fee waivers to speed or facilitate two office-to-residential conversion projects annually as part of his 2025 budget proposal. The mayor’s “All-In Housing” framework also calls for amending the city’s rent control ordinance to include only properties built on or before Dec. 31, 2004.
The St. Paul City Council recently approved an expansion of the Downtown Improvement District to cover all of downtown, beginning in January, with the new district spanning both commercial and residential properties. Fees assessed to property owners will cover bike patrols, safety ambassadors and added skyway coverage.
The city and Minnesota Department of Transportation are investing $250 million in street repairs and infrastructure improvements across downtown.
Metro Transit issued a request for proposals for the Central Station block this summer and interviews with a potential developer are underway, and Ramsey County hopes to complete a schematic design for its proposed Park at RiversEdge, which would be situated along Kellogg Boulevard.
Among the city’s bonding priorities before the state Legislature, the mayor’s office, the Minnesota Wild and other partners have proposed an improved entertainment district better connecting the Xcel Energy Center to the core of downtown.
The report
The Gensler report ranked 20 downtown St. Paul office buildings on a 100-point scale to determine which would be the likeliest candidates for conversion to residential housing.
• High scorers: 375 Jackson Street’s first building, Alliance Bank Building, Empire Building, First National Bank building, Gallery Professional building, Great Northern building, InterContinental building, Park Square Court, Town Square UBS Tower, US Bank Center.
• Medium scorers: 375 Jackson’s second building, City Hall Annex, DoubleTree Hotel, First National Bank floors 28-31, Grace Building, Lumen Building’s first tower, St. Paul Athletic Club, the Allen Building.
• Low scorers: Lumen Building’s second tower, O’Connor building, Ramsey County East, St. Paul Building.
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