New Frontier on the Ohio River

A study by Development Strategies of St. Louis, examining past trends in Louisville and several nearby cities, offers a promising prediction that Louisville’s downtown sector will successfully fill nearly 250 new apartments and condominiums a year over the next decade. The study confirmed that Louisville is similar to other midwestern cities experiencing new demands from young professionals, college and post-graduate students, and empty nesters all eager for suitable urban living spaces. Mike Lewis, development associate for Milhaus, says, “even though there is some multi-family development happening in Louisville, it just isn’t enough to meet the growing demand. We feel that we can definitely help fill that gap.”

Values drive what renters want and expect in their living spaces, and Louisville, like Indianapolis, is based on strong family fundamentals. Their downtown sector hosts an educated workforce, and several Fortune 500 companies are headquartered in Louisville. Companies like Humana, YUM!, Kindred Healthcare, and Papa Johns provide a good employment base, which demonstrates an ongoing need for inner-city housing. Other economic concerns like the types of rent people are willing to pay, the quality of construction needed and potential construction costs are easier to predict in cities similar to Indianapolis. Having completed several local projects gives Milhaus the confidence to expand into this new market.

Furthermore, the levels of private and public investment in Louisville are good indicators that the city is a viable market for ongoing development. The city has been actively working for several years to make their downtown more attractive to tourists and potential urban dwellers. Lewis comments, “In today’s economic environment, people living not just working downtown are essential to maintain any urban center and its businesses. It isn’t possible to make it work without the street energy; the people living there make that happen.” Louisville clearly has that part of the equation figured out.

Post 2000, many urban areas have discovered the key to revitalization is reinvention. Some of Louisville’s initiatives to rebrand their downtown include Waterfront Park, an 85-acre greenspace on the Ohio River where residents can enjoy concerts, festivals, picnics, playgrounds, walking, jogging, a lively game of frisbee or touch football. 4th Street Live provides residents with easy access to downtown shopping, dining and live entertainment. The successful stabilization of several historic buildings along Whiskey Row solidifies the city’s plans to attract potential micro breweries, restaurants, and bourbon distillers into the area. Lewis says, “They hope that restoring part of Louisville’s whiskey and bourbon making traditions will bring new economic boons as well as tourist interest to the downtown sector. They are very committed to providing the kind of atmosphere that will attract new residents.”

The city’s efforts are already beginning to pay off. Angel's Envy bourbon makers have begun renovating a 19th century building, located at the corner of Jackson and Main Streets to house their brewing and bottling operations. And, after 94 dry years, Peerless Distillery, still family-owned and operated, plans to re-open its doors for business in downtown Louisville in the spring of 2014. Although Louisville is a few years behind Indianapolis in terms of meeting the demand for multi-family housing, they are building a strong base to meet predictions. Lewis adds, “The lack of supply makes the market there appealing. Some new development is already underway and the fact that investors have shown interest makes considering projects there that much more attractive.”