Museum Plaza condos generate interest from New York to Japan
Business First
10/26/2007

By: John R. Karman III, Business First Staff Writer

Although the planned $490 million Museum Plaza may have doubters here at home, there's no question that the national and international attention and acclaim given to the project has created a buzz.

For proof, look no further than the interest generated by the more than 160 luxury and studio loft condominiums that will be built as part of the mixed-use development at Seventh and Main streets in downtown Louisville.

With no advance marketing, more than 400 people from such places as California, Florida, New York and Japan have contacted the Museum Plaza development team to inquire about the condos, according to Molly Swyers, director of sales and marketing for the project.

As part of its planned Oct. 25 groundbreaking festivities, interested parties were able for the first time to begin visiting the Museum Plaza sales headquarters at 707 W. Main St. to learn more and to tour several model units constructed in the former office building.

At the site, potential condo buyers also could check out views they might have from units on the 62-story Museum Plaza's 30th and 50th floors.

Photographers shot panoramic photos from a helicopter to capture the view, Swyers said. The pictures have been placed on the walls in the sales center to provide what developers believe is an authentic look at the Ohio River and Louisville's waterfront from the lofty vantage point.

Prices range from $275,000 to $2.5 million

Swyers, a Louisville native who recently returned to her hometown after eight years working in international marketing and branding in New York City, is optimistic about the prospects for Museum Plaza.

Interested buyers now can make down payments on the residential condos, which will cost from about $275,000 to $2.5 million. Sizes will range from 700 to 3,600 square feet.

The largest and most expensive units will be four, two-story penthouses.

Selling the units will be a big challenge, Swyers said, but she believes it's doable because the skyscraper is "one of the most exciting projects" ever planned for Louisville.

Plaza to have multiple components

Residential condos are only one of the many components of Museum Plaza, a 1.6 million-square-foot structure scheduled to open in late 2010 or early 2011.

The mixed-use project also is designed to include 300,000 square feet of Class A office space, a 250-room Westin Hotel and restaurants, shops and cafes.

The University of Louisville's Master of Fine Arts program studios will be housed on three floors and will include a glass-making hot shop and gallery.

A new contemporary arts museum will take up 40,000 square feet, and a 140,000-square-foot plaza and park will be at the base of the development, on top of an 850-space parking garage.

The project is being developed by spouses Steve Wilson and Laura Lee Brown, real estate developer Steve Poe and attorney Craig Greenberg.

Construction manager also building arena

Thursday's ceremonial groundbreaking was after Business First's press deadline, but in an interview earlier in the week, Greenberg said plans call for work to proceed "full speed ahead."

"Construction will start right away," he said, adding that a "significant amount" of work has to be done in connection with the foundation and flood wall before flood season starts near the first of the year.

Minneapolis-based M.A. Mortenson Co. is the construction manager for Museum Plaza, which is expected to require a 39-month build-out. The company is also construction manager for Louisville's planned downtown sports arena.

Greenberg praised Mortenson, which has had officials in town for "well over a year" to plan for the skyscraper, he said.

The attorney said the first work that passersby likely will notice will be on the southern portion of the Museum Plaza site, which is bounded by West Main Street, River Road and Sixth and Seventh streets. The development's southern tower will house the hotel.

Hotel brings national brand

The Westin is a "nationally known, upscale brand," Greenberg said, and will be the first hotel in Louisville operated by White Plains, N.Y.-based Starwood Hotels & Resorts Worldwide Inc.

The hotel will include a fitness center, spa and pool on Museum Plaza's 25th floor. The fitness area will be encased by glass windows and will overlook downtown.

The Westin also will have ballrooms and meeting space on the 25th and 26th floors.

Office space going for $30 per square foot

With a significant block of Class A office space included in their project, Museum Plaza developers hope they will be able to draw a corporate or regional headquarters to Louisville.

They have enlisted the services of New York City-based Cushman & Wakefield Inc., and its local partner, Commercial Kentucky Inc., to handle office space leasing.

Greenberg said developers also are working with Greater Louisville Inc., the metro chamber of commerce, and the Kentucky Cabinet for Economic Development in an effort to attract tenants from national, regional and local markets.

No tenants have been signed, Greenberg said, but some will be "in the very near future."

He declined to identify any of the potential tenants.

The asking price for commercial office space at Museum Plaza is $30 per square foot, plus electricity, according to Craig Collins, a broker with Commercial Kentucky.

That price would be higher than that currently paid for most Class A space in downtown Louisville. The highest prices now paid for such space are in the low-to-mid $20 range, according to industry and Business First reports.

"We understand the market," Greenberg said. "We understand that we're in Louisville, Ky., with respect to office rates.

"But we're offering, we believe, the best office product (available), so we will be at the upper end of the market," he added. "We certainly will be competitive with the market."

'A unique office environment'

Greenberg said the project will give companies a chance to "elevate their brand" by housing their operations in a "signature location."

Collins said Commercial Kentucky has received "some curious interest" in Museum Plaza space since being named leasing agent for the property a month ago.

But with the building's grand opening more than three years away, it's "a little far out for most companies to make a firm commitment" to signing a lease, he added.

Still, the broker expects demand to be strong.

Museum Plaza will offer "a unique office environment, not only in the local market, but in the U.S.," Collins said.

U of L programs could bring 24/7 activity

One potential tenant for the development could be the U of L College of Business, which has been exploring options to move its graduate school programs downtown from its main Belknap Campus.

U of L issued a request for proposals in July, looking for 30,000 square feet in the central business district where it could operate its MBA programs.

The Museum Plaza developers were among seven respondents to the RFP.

U of L business school Dean Charles Moyer could not be reached before Business First's press deadline to address the status of his search for downtown space.

Greenberg said university officials have requested and received more information about the Museum Plaza proposal, but he would not elaborate.

He did say the presence of U of L's MBA programs would be "a wonderful addition to downtown and to Museum Plaza."

U of L's space, if it decided on the planned skyscraper, likely would be used for classes on evenings and weekends and would be available during the day for company meetings, conferences and corporate events.

"Part of our goal with Museum Plaza, and the reason we have such a mixed use, is that we really want to have 24/7 activity," Greenberg said. "The business school's use is very complimentary to that goal."