Study identifies 10 buildings as strong candidates for conversion with potential to add nearly 4,000 residential units in downtown Saint Paul

SAINT PAUL, Minn. – Nov. 13, 2024 – The Saint Paul Downtown Alliance today shared several progress updates on its Downtown Investment Strategy, including the results of a recently completed study that analyzed the feasibility of converting several downtown office buildings into residential units. The study is one of the largest milestones in advancing the Downtown Investment Strategy, which was introduced in March and outlines three key priority areas for the public and private sectors to work on together to dramatically increase density, vitality and desirability downtown: office-to-residential conversions; public realm enhancements; and predevelopment efforts for downtown Saint Paul’s most strategic redevelopment opportunities.

 

Office-to-residential study finds half of properties studied meet threshold for conversion

Conducted by architecture and design firm Gensler, the study evaluated the compatibility of 20 commercial properties as office-to-residential conversions. Properties included in the study were identified by the Saint Paul Downtown Alliance and total nearly 3.8 million square feet.

Gensler has studied more than 1,400 office buildings across North America since 2000 to assess their feasibility for residential conversions based on five key criteria for success. These same criteria were used to evaluate buildings in downtown Saint Paul: overall floor plate; size and form; services such as loading, parking and mechanical, electrical and plumbing systems; facade and window design; and contextual elements like walkability, transit and natural light.

The five factors provide a preliminary compatibility score to guide next steps, however, each property would require more detailed study to fully determine its feasibility.

The 20 downtown Saint Paul buildings were placed into three categories based on their preliminary compatibility scores:

  • 10 buildings received a compatibility score of 80% or higher, making them strong candidates for a successful conversion (category one).
  • Six properties received a compatibility score of 70-80% (category two). These properties are potential candidates for a conversion but would require some compromises, such as larger unit sizes, a limited range of unit sizes or less than ideal parking.
  • The remaining four properties scored below 70% (category three). Converting these buildings may likely require substantial compromises with a reduced likelihood of success.

Converting the 10 buildings in category one could create an estimated 3,951 new residential units. The study also estimated these conversions would save 80,000-110,000 tons of carbon dioxide emissions annually.

“The results of this preliminary residential-to-office study are encouraging and demonstrate the unique potential we have in downtown Saint Paul,” said Joe Spencer, president of the Saint Paul Downtown Alliance. “Downtown is poised for one of the greatest transformations in the city’s history. This conversion study gives the market a data-based head start to begin conversations around the key role housing can play in reinvigorating downtown.”

Properties in downtown Saint Paul scored well above average compared to other commercial properties in North America. Benchmark data from 1,400 other properties shows about 30% of properties fall into category one, with another 30% in category two.

Advancements across Downtown Investment Strategy priority areas

The study is one of several advancements made in alignment with the Downtown Investment Strategy since it was announced in March. Based upon national precedents, local data analysis, stakeholder perspectives and community input, the first-of-its-kind strategy for downtown identified three priority areas. Each priority area has experienced progress over the first six months of implementation:

  • Office-to-residential conversions: Construction is currently underway on two office-to-residential conversions in downtown Saint Paul at the former Ecolab University and Landmark Tower buildings.Additionally, Saint Paul Mayor Melvin Carter proposed a $1 million investment in permit fee waivers to facilitate two office-to-residential conversion projects annually as part of the City’s 2025 budget and All-In Housing Framework. The framework also calls for amending the City’s rent stabilization ordinance to include only properties built on or before Dec. 31, 2004, to focus on the value of new construction and recognize the maintenance costs of older properties.
  • Public realm enhancement: This summer, property owners and the Saint Paul City Council approved an expansion of the Downtown Improvement District to cover all of downtown effective Jan. 1, 2025. The new district includes both commercial and residential properties and will enhance existing safety strategies such as safety ambassadors, bike patrol and added skyway coverage.

Significant investments in downtown infrastructure are actively being made in 2024. Construction began in July on Pedro Park at the corner of 10th St. E and Robert St. N, and nearly $250 million is being invested in street repairs and infrastructure improvements across downtown by the City of Saint Paul and Minnesota Department of Transportation.

  • Predevelopment efforts: The Saint Paul Downtown Alliance and its partners continue to take tactical, early-phase actions to continue to advance downtown’s most strategic redevelopment projects and opportunities. Metro Transit issued a request for proposals for the Central Station block this summer and Ramsey County is advancing schematic design for the Park at RiversEdge. The City of Saint Paul and several partners are also continuing planning conversations for heavy investments in an enhanced entertainment district tying the Xcel Energy Center to the core of downtown, identifying the project as a top state bonding priority for 2025 and critical initiative to bolster downtown vitality and economic development.