Saint Paul weekly Minnesotian. [volume] (Saint Paul, Minn.) 1858-1859, 1859-03-12
Letters from the West.--NO. 12....P II.
lOsOphy Of Real Estate In st. Paul.
Correspondence Of the Troy Daily Budget.

losOphy Of Real Estate In st. Paul.
Correspondence Of the Troy Daily Budget.
ST. PAUL, Feb. 10, 1859.
There is no spot in the world, perhaps,
where greater or more sudden changes In the
value of landed property have taken place,
than in the apostolic town from which we
write. '"|
q. But little more than ten years have passed
since all of this city was purchased of the gov
eminent for one dollar and quarter per acre.
The twenty five hundred acres consequently,
which are at present included in the Limits"
of the;:city, cost originally less than Mirty:fre
hundred dollars The actual value of this
property to-day, cannot be less than ten mil
lions!
A fifty foot lot was sold in the city last fall
for SO, 900 cash, or at the rate of 5000 per
front foot This may be considered as the
maximum value of the best business property
in st. Paul, and, comparatively speaking, It is
not unreasonably high. The same class of
property in Milwaukee would be valued at
more than double this rate-say $500 per
front foot In st. Louis, New Orleans and
Chicago sales of business lots are frequently
made at from 81 900 to 81 800 per front
foot. In New York city there are many lots
on Wall Street and Broadway which could
not be bought for less than five thousand dol
lars per front foot. These facts are given as
kind of criterion, by which one may form
some adequate idea of the relatiue value of
real estate in st. Paul.
The general impression of strangers is, that
property iu this city is altogether too high
This opinion arises in most cases from the
adoption of false standard of comparison
St. Paul is unjustly classed with towns of
similar size and population at the East, where
perchance the value of real estate is even less
than it is here. 1t seems to be forgotten by
these people, that St. Paul has attained its
present population in an exceedingly brief
period, and that its growth has but just COM
menced, while the Eastern cities in question,
are either standing still, or advancing but
slowly. One might as fairly compare adwari
with an infant giant.
venture the assertion, which can be sub
Stimulated by proof, that the business proper
ty in st. Paul is lower in proportion than in
any other city in the United States. What bet
ter evidence of this fact could be required than
that this very property, when improved, will
yield larger return in proportion to the cap
ital invested than could be realized in any CITY
of the East. For instance, suppose 5000 per
front foot to be paid for the best lot in this
city. The total cost of the lot will be SIC, 900,
an equal sum will be ample to build upon the
property two commodious three-story brick
stores. The buildings being of course situated
in the heart of the city, would readily rent for
$50, 500 each. This would be Sc, 900 per an
mum, upon an investment of $4,000, or 25
per cent. If this statement is correct, is not
the lot low at 5000 per front foot? Most GER
tainly it is; and just in proportion as interest
falls and business increases, will the real IN
trinsic value of such property advance. 1t is
now at its minimum point High rates of in
terest, which always prevail in new communi-
ties on account of the scarcity of capital, have
depressing effect upon real estate, and a
tendency to prevent such property from at
tanning fictitious valuation. If money could
be obtained here at Eastern rates, the spirit
of speculation, thus unrestrained and encour-
aged, would run rampant. There would be a
perfect lunacy in regard to corner lots, and
people would be apt to fancy that they could
not dispossess themselves of their superAuous
cash too rapidly. 1t would be evident that in
State where the development ofinexhaustible
natural resources is going forward as rapidly
as it is in Minnesota, that the actual rise in the
value of property must necessarily be much
greater than in the ratio Of z per cent per an
mum. Hence every one would inevitably be
taken with q mania for converting their money
into real estate. The effect of such alchemy
would Of course be most disastrous.