Condos multiply in urban markets

REGION

Developers are responding to more expensive real estate tastes in Central Pennsylvania cities.

They are building lofts and condominiums comparable to those found in larger metropolitan areas such as New York City, Philadelphia and Baltimore. Developers and real estate agents marketing the dwellings said they are focusing on a specific demographic.

"We are marketing it to single professionals; young, professional married couples without children; and empty nesters," said Jack Kay, chief executive officer and president of York-based Susquehanna Real Estate. "If you follow consumer trends that are consistent in larger cities, there is a lag before they reach second- and third-tier cities."

On May 9, Harrisburg Mayor Stephen R. Reed joined Kay to unveil Susquehanna's plan to construct a $22 million condominium, office, restaurant and parking complex at the site of the historic Tracy Mansion at 1829 N. Front St. in Harrisburg.

Tracy Manor will include seven stories of condominiums. Each of the 37 units will boast views of the riverfront, and most will include outdoor terraces and balconies. Prices will range from $300,000 to $500,000, depending on size. Twobedroom units that have approximately 1,600 square feet will cost somewhere in the mid-$400,000 range, Kay said.

Harrisburg's newest residential plan must now pass the city's review and permit process. Ground should be broken on the complex as early as this fall, Reed said. And construction should take about 16 months. The project calls for 92,000 square feet of new construction and the restoration of 15,000 square feet of existing building space, Reed said.

This is not Kay's first crack at developing condominiums. His group also built The Lofts on George Street, in York. Those condos cost between $250,000 and $350,000. Susquehanna broke ground on The Lofts three years ago and all 19 units have sold. The Lofts feature first-floor retail space, too.

"We felt that for the overall success in York, there had to be more people living and working in the city. It is key to urban revitalization," Kay said. "And we felt the market was ready for high-end design. People are paying these prices for condos and homes outside the city."

Susquehanna chose to build The Lofts after it conducted market studies and met with various focus groups that showed interest in upscale urban living. The prices are consistent with what young professionals and empty nesters are looking for, Kay said. And studies showed the same is true in Harrisburg.

"The demographics in Yorkwere not as good as they are in Harrisburg, and we had people coming from Baltimore and Washington, D.C., to live there," Kay said.

In Harrisburg, Kay will have company. Although Tracy Manor will have the most condominiums, there are two similar projects in the city.

Harrisburg-based Moyer & Williams Development Group is transforming an old warehouse into eight luxury-style loft condos at 1000 Market St. The Market Street Lofts cost between $200,000 and $330,000. The lofts are under construction, and four are pre-sold so far, said Steven R. Moyer, co-developer of the project. Moyer is targeting a younger business crowd, he said.

Patrick Lafferty, vice president of CB Richard Ellis in Harrisburg, transformed four apartments into upscale units along Pine Street. This allowed Lafferty to rent each for 30 percent more than market price. They are all occupied.

"I think the downtown demand is there. I would say it's there for empty nesters and people who want to be close to amenities," Lafferty said. "Anywhere else, you have to jump in your car to get a quart of milk. And you can walk in your neighborhood, but it's not like being able to walk in the city."

The Tracy Manor condos are different from other upscale urban dwellings going up in Harrisburg, Kay said. The views of the Susquehanna River set them apart, and the extra space Susquehanna has to work with on its 1.6-acre tract will permit extra landscaping and a courtyard to connect Tracy Mansion and the condo building. The mansion will be restored to include a fine-dining restaurant on the first floor and office space on the second and new mezzanine floors, Kay said.

The condo trend is not limited to York and Harrisburg. It has spread to downtown Lancaster, too. Messner Enterprises of Lancaster broke ground on its version of upper-end downtown living three weeks ago. The project is called Northgate, and it sits along North Queen, East Lemon and North Christian streets.

Like Tracy Manor, Northgate is a multifaceted project. Six loft-style condos will go in a historic warehouse, and the units will sell for $425,000, said Andy Esbenshade, a real estate agent with the Andy Esbenshade Team at Coldwell Banker in Lancaster. Esbenshade is marketing the residences.

Northgate includes six row homes that will be transformed into three larger high-end townhouses. These dwellings will sell for about $350,000 Esbenshade said. Messner Enterprises is putting up a five-story building at the corner of East Lemon and North Queen streets that will feature retail space on the first floor and condos on the second, third, fourth and fifth floors. Pricing is not confirmed yet for these units because a few may be customized. Some of the custom units could go for Sl million, Esbenshade said. No Northgate residences have been sold. Coldwell Banker plans to have firm pricing available around May 24.