The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-05-27

~ RICES ludicrously low prevail in
Minneapolis residence real estate,
according to the belief Of G..
n. Farwell of New Hampshire, a client
of the David G. Bell Investment COM
pany. He predicts that Hennepin ave-
nue. is to be the future retail street,
arguing from premises as he sees them.
AS to Minneapolis business property
he does not pretend to DO so well IN
formed as he has become in the last
few years with residence property
phases but he does not believe the
situation warrants valuation Of $4,000
p front foot he has found placed on
mortgages in the neighbochood Of Sixth
street on Nicollet avenue. Too much
practically virgin country lies immedl-
ately southwest. He finds that eastern
cages to Minneapolis city property So
curities, owing to low values obtain
Mr.. Farwell made reference to the re-
markably low valuations at which home
lots are held here thru the fact that In
investigating the security for a loan
he discovered that a 45-foot lot inside
iof Twenty fifth street and within four
blocks east Of Park avenue, was valued
lin the application at only $500. On the
lot was a new, absolutely modern house,
that cost $500, and street improve
%,ments, such as sidewalk, water, gas and
jsewer connections, and curb and gutter
were in. In his own New Hampshire
city, of less than 1000 population, a
lot without improvements In the out,
skirts mile from the city center could
mot be bought for less than $500. -" 1t
seems to me- said Mr.. Farwell, "that
in city of this size and prospects that
a lot in that location and with It's i'm
provements should be worth at least
&hree times that amount. -
A talk such as Mr.. Farwell gives T b g
Journal in regard to Minneapolis
prospects as affecting real estate is cal,
backbone into the invest or who pre-:
serves an Indifferent attitude toward
freal estate investment in his own city
lie has rarely submitted to newspaper
interview, but was persuaded that OBJ
servations made on this trip would be
fof value to real estate men and invest
Yors. A banker born and bred, althc
has been able to form good opinion
tof values.
Referring back to the silver panic he
said that real estate is always last tc
feel the effects Of better business con
ditions. 1t does not begin to feel the
effects until business men have Grecuper
ated and have accumulated reserve
Dank accounts. AlJ6r q lew years OF
good business they begin to look about
FOR investments in improved real estatt
and in sites for homes. We have NOV
had four or five years of good times il
the business world and real estate
values in the last twelve months havs
begun to expand. This has been causet
largely in the west by a legitimate de
smand for improvement in Investment
In some of the older eastern cities thu
movement has assumed quite a trend
Especially in New York and Brooklyl
and some parts of New England. Here
tofore such movements have started il
the east and gradually worked thru tn
west, and it nothing happens in bust
ness conditions it can be counted OF
almost to certainty that there will b.
a speculative appreciation in real estat
thruout the west in reasonable time
81 Values Lowest Here Now.
q IT don It know of any city in tn
= country said Mr.. Farwell, '"twher
values are so low as they are in Mime
apolis. Judging from the ruling price
for property in much smaller cities i
the east, lots in good residence section
are selling in Minneapolis at SO pc
gent less than their intrinsic value, no
taking into consideration any specula
tive value. With steady growth of tn
city in population and the larger growt
thruout the territory which Mime
apolis serves, the trend can only b
from the present basis of values ut
ward.' -l..,7t :
Mr.. Farwell spoke of the railwa
growth. Only a few years ago tn