Housing Developer Motivated by Streetcar

(March 14, 2024)

Omaha, NE - Central Park Plaza, the twin-tower office complex in downtown Omaha has been sold and will be converted to one of the largest residential developments in the urban core.

NuStyle Development will redevelop the towers on South 15^th Street between Farnam and Douglas into an apartment building to be renamed, "The Duo". Sullivan's Steakhouse will remain at the current location on the first floor. A new coffee shop will replace Starbucks which recently closed.

Plans also call for demolishing the vacant Park Fair Mall on the corner of 16^th and Farnam, replacing it with a new city-owned parking garage with additional apartments above and commercial space along 16th Street. The renovation will be completed in three phases, beginning with the south tower, followed by the garage and apartments, and finally the north tower to be finished in 2027, coinciding with the expected completion of the streetcar, which will run west on Farnam Street, past "The Duo".

The project is valued at $163 million, which does not yet include the cost of the garage.

"The streetcar is the reason we're doing this," said NuStyle Development President Todd Heistand. "The streetcar brings greater value to downtown development"

Since the streetcar announcement in 2022, numerous urban core developments have been announced or construction has started, including "The Duo". It is expected that approximately $1.2 billion in new development will be underway along the streetcar corridor by the end of 2024. This rate of investment exceeds the projections identified by Municap, the independent review of the streetcar financing plan. Municap projected $2 billion in new development in 15 years. In just three years, Omaha will realize more than half of that estimate.

"High value development along around the streetcar route is exactly what we expected," said Mayor Jean Stothert. "NuStyle has a reputation for quality and innovation. We are thrilled with their investment and expect more exciting development announcements on the streetcar route over the next few months."

NuStyle will apply for $26.5 million in Tax Increment Financing. "The Duo" is located in the Streetcar District of the Urban Core Housing and Mobility Redevelopment Plan area, therefore 25% of the TIF revenue during the first 15 years will be contributed to the streetcar system. All TIF revenue generated during the last five years will be allocated to the streetcar.

The plans also call for $12 million in PACE (Property Assessed Clean Energy) financing. PACE is a financing tool that enables owners of commercial properties to lower operating costs by improving energy efficiency and reducing water consumption.

"The Duo" is part of a larger, ambitious vision to reactivate the area between 14^th and 17^th Streets, Farnam to Capitol Avenue, creating what may be called "The Tower District".

"We're creating downtown neighborhoods that have a full range of business, commercial and residential properties to engage people downtown after work hours and on weekends, all accessible and connected to the streetcar," said Mayor Stothert.

The 2022 Greater Omaha Chamber Urban Core Strategic Plan calls for 30,000 new residents in the urban core over the next 30 years. "The Duo" and other projects in the pipeline will enable the City to stay on pace to achieve that goal.

NuStyle plans one, two, and three bedroom market-rate apartments, ranging in monthly rents from $900 to $2,350. Heistand says some of the most affordable units in downtown will be available at "The Duo".

NuStyle has a successful record of redeveloping properties originally designed and built for other uses, particularly office buildings. Heistand says the occupancy rate in their buildings is 99%, an indication of strong demand for downtown housing. Tenants are primarily young professionals and students. Like other NuStyle buildings, The Duo will have amenities such as an elevated court yard, pools, and rooftop views.

Other NuStyle developments in Omaha's urban core:

The Atlas -2929 California Plaza Former Creighton University Medical Center
The Bank -1920 Farnam Office
The Highline -2223 Dodge Office
The Wire -100 S. 19^th Street Office
The Breakers-415 Leavenworth Former OPPD Power Plant
The Slate -1119 N. 19^th Street Office
Nico-3024 Harney Office
Rochester Lofts-1015 N. 14^th Street Warehouse
TipTop Lofts-1524 Cuming Office/factory

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