The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-03-28
DIRT | IS CHEAP HERE
Prices on Minneapolis Real Estate
Are Low as Compared With d
Prices Elsewhere.
An Advance Looked For in Business
Districts-Conditions Fair in
Residence Sections.

Minneapolis real estate is the cheapest
dirt in the country. taking of course into
consideration the size of the city, the pro-
ductiveness of real estate improvements
and the cfty's prospects. Compared with
the prices prevailing in Sacred Heart or
Young America square foot of Minneap-.
oils sod might be considered high, but when
Minneapolis prices are lined up along
side Of those prevailing in Los Angeles,
Kansas City and other wide-awake places
they look quite fiat. These general re-
marks do not apply to Nicollet avenue.
which In real estate as well as in bus1-
nesss Is a law unto itself and is not gov
erned by the ruiz of either the assessors
or the real estate dealers.
Leaving Nicollet avenue out of consld-
Grafton for: the time. it seems reasonably
certain that the prices are low-low in
every respect. low when comparing class
for class on the basis Of earning capacity;
and low as compared with similarly To-
Gated real property in other cities. They
are much better than they were two and
three years ago--ln fact, the value Of real
estate has Just about doubled in that time
and In certain localities has done even
better. The tendency this spring Is for bet
ter prices and there will be an advance
until the market has reached a reasonable
figure.
No Boom Looked For.
The general prediction is for an ad-
vance in every class of real estate, but
there will be no boom unless outside In
nuences get to work and create an artt-
ficial imitation. ~
= The dealers desire boom; that Is,
the majority Of them will discourage any
movement toward unreasonable specuia-
= ton for they realize that it Will hurt the
city and it's people, including themselves.
Real estate values should be based on
the capacity to produce revenue says
Lester B. Elwood, president Of the Min
neapolis Real Estate board, land that IS
the basis on which they are fixed except
of course in boom times or under other
extraordinary conditions. And yet while
all values are governed by the capacity
to earn money the same rules should not
apply to residence property as to business
property Ordinarily conditions in BUSH
ness localities are more or less fixed,
while residence conditions are not We
can all remember when Seventh street
was the fashionable residence street OF
Minneapolis and Tenth street Hawthorne
avenue and other streets and localities
q have had their day. The residence CEN
ter, meaning Of course the most fashion
able portion Of the city IS constantly
changing. With business property It is
quite different. Nicollet avenue is the great
business street Of Minneapolis. 1t prob
ably always will be. Business may move
up or down from various causes, but Mic
ollet avenue will remain as the street
On such thoroughfare a building has a
certain stable value. When tenant re-
moves there is always one or more ready
TO move in at the same or even better
rental.
I'm the matter Of building residences
the problem is entirely different. A mar
might put up a residence to suit his owT
taste, but it would not begin to bring him
p the returns from others that it had beer
worth to him. pa 81
For these reasons one should not use
Z the same factor, of net income In arriving
at the value Of residence property that
: he would apply to business property.
IAN investor, in real estate should re-
ceive far greater income, in proportion
of course, from a residence property thar
from q business improvement on account
of this very uncertainty as to the future
1t is the difference between stable anc
unstable values and the latter would b.
expected ito produce a greater net income.
T. Nearly Proper Basis.
Relatively speaking I should say tina
residence values in this city were nearl.
at a proper basis, certainly much more
5 nearly 50 than they were years ago.
Z Whereas the assessments on Nicollet
avenue property have greatly increased
in late years the assessed valuation OF
outsd residential property is only one
: half, yes. even one-quarter Of what it was
!, ten or fifteen years ago when fictitious
prices prevailed. 1t may go too far in the
latter direction and think that it has
especially on outside real estate.
4 Trackage Property.
",Trackage property for manufacturing
concerns and jobbing houses is too low
not only as compared with the prices fol
other classes Of real estate, but for the
same class in other cities. Contrary tt
the common belief, there are not grea
trackage facilities in this city. One cal
go away out or even into the suburbs will
manufa curing plants. but 1obbing house!
must be reasonably close to the heart o
the heart Of the city. or trackage of Thu
class there is not much to be had, ant
vet when it Is considered how little Their,
is available, the present prices are dis
tinctly low. .a" -..-.- ..-. 49, >.
TN the jobbing district, meaning par
ticularly First avenue N and adjacen
sections, the values are very fair as com
pared with other business property d.
not refer to the most desirable Of N1col
let avenue frontage, but business prop
f. serty generally a.
TOO Low" Says c. L. Sawyer.
"Residence property in this city is un
auestionably too low says c. L.; Sawye
of Moore Brothers & Sawyer. cuisines
frontage has appreciated very decided
4 in the past few years, and, while othe
real estate has advanced at gratifyin
rate in certain localities. the increase
have not kept an even pace. One reaso
for this, I think. lies in the fact tha
Z there is lot Of cheap property to be ha
In this city. I mean by that houses owne
Z by eastern spectators and investors whic
have been allowed to run down. Their
are so many of these holdings on tn
market that can be secured at a low f1gur
x that it holds back all other property. TIL
q raising of rentals will, Of course. max
this property more valuable. Better still
il some syndicate could control the bul
of these eastern holdings and spend a litt
money on improvements, the houses woul
rent much better, be more sought for 8
investments. and residence property ger
orally would Immediately show distint
stimulus. -, r. ...s. .r. a."F. r..N
naEa EI@ Figure on Large Returns. -'=S--
Z Investors figure on a much larger re
turn on homes than on stores. Thus the
will take property on Nicollet that pay
5 per cent gross where they won't touc
outside real estate at less than 10 or
per cent. For a house and lot renting 10
say, s1S per month, they will offer $3.50
And when they have $500 to spend the
want a modern house with open plumb
ing, hardwood floors, ETC.. which are nj
n to be had, for such modern houses al
held at a very fair figure.
Good Field for Investment.
''My idea is that the best field for il
vestment just at present is in properti