DOWNTOWN, USA -- In downtown San Jose, CA, which is in the midst of a massive multi-billion dollar redevelopment effort, you can rent a home in a community with a penthouse-level lounge and concierge-style services.

The grounds of the community are dotted with water fountains and paved with walkways. You get underground parking, a therapy spa, a fitness center, a private conference room and a business center equipped with computers, software, fax machines and copier equipment.

And it will cost you only $1,660 a month -- for a 561 square foot studio.

The 101 San Fernando Apartments community will rent you a larger studio for $1,895, but if that's still too cramped you can move up to a one-bedroom apartment for $2,000 to $2,575 a month.

You don't want to know how much the two-bedroom townhomes will put you back each month, but you get the idea.

The "hip" in the return to urban living refers not only to cool housing, but also to that wad of dough you'll be missing from your hip pocket wallet.

The return to downtown America, often by young, childless professionals and empty nesters is triggering the development of housing catering to those who demand convenient, maintenance- and commute-free living, according to the Urban Land Institute.

The rich have to live somewhere and many of them are choosing housing in new urban cores.

Urban infill rental-housing that's out of reach for middle and lower-income workers was the topic at a ULI gathering in Minneapolis this spring, where experts said the costly shelter is filling a void in inner cities.

"We're targeting young singles, single women, gays, and active older adults. They want cool, they want lofts, they want to be near schools and cultural centers," said Robert L. Silverman, chairman of Atlanta, GA-based The Winter Group of Companies .

The company is transforming old warehouses and industrial buildings in downtown Atlanta to upscale housing projects.

"People used to be afraid of going downtown, much less living there. That's changing. People want to eliminate car trips, they want flex space," said Michael Loia, president of Loia Budde in Atlanta.

But to attract these "new" downtown residents who crave individuality developers can't build boxes.

"It must be funky, pleasing, exciting, charming, cool, and cutting edge," said Loia.

Loia described one of his loft-like projects, with brick inside and out, exposed ducts, maximum ceiling heights, large amounts of glass, and loosely defined living areas.

"We were targeting young people, but were surprised at the interest by empty nesters. These people don't have a problem with density. They like being close to other people. That's urban living," Loia said.

In San Jose, CA a suburban-infill project takes on some of the elements of the new urban projects.

Designed to break the mold on conventional shopping centers with their sprawling parking aprons, Santana Row plans to create an instant neighborhood that feels like, well, like it's always been there.

Think of a cross between San Francisco's Haight Street and Barcelona's Las Ramblas -- bustling, urban, neighborhoods replete with housing, pedestrian-friendly streetscapes, alfresco dining spots, cafes, retail shopping and a nightlife that swings into the wee hours of the morning.

The 40-acre Santana Row development will include 680,000 square feet of lower-level retail space for dozens of Rodeo Drive-like boutiques, high-end chain retailers, restaurants, grocers and salons in a community much the size of Palo Alto's University Avenue neighborhood.

The 1,200 luxury residential rental units from lofts to townhomes perched atop the retail expanse will rent for thousands. If you think it sounds like a nice place to visit but you wouldn't want to or can't afford to live there, you can hole up in a 200 room boutique hotel that will serve as the new neighborhood's residential centerpiece.

"It will have a 24-hour lifestyle. The feel for residents will be like a club. For visitors, this will be the kind of place you come because you want to spend time here experiencing the lifestyle," said Anthony Flanagan, director of development for Santana's developer, Federal Realty Investment Trust of Rockville, MD.

Also for the young new wealthy who want hotel-like amenities and services, Charles E. Smith Companies of Arlington, Va., is building units for those who say they are "renters by choice."

"We go where there is a concentration of 25- to 45-year-olds and those 55 or older with enough income to do what they want. They have lots of choices in where to live, and they go for a convenient location. They want restaurants, groceries, entertainment, shopping and recreation in walking distance," said Alfred G. Neely, president of the Charles E. Smith's development division.

To create the feel of a high-end hotel, the developments include top-quality health clubs, business centers, 24-hour front desks and concierge centers, even cyber cafes, he said.

Neely noted, however, that while demand remains for luxurious downtown living spaces, the company has started pulling back in response to an overall increase in the supply of high-end rentals.

Much to the chagrin of affordable housing proponents, Charles E. Smith Companies and others haven't focused on less expensive rentals in inner cities because the redevelopment costs associated with most infill projects keep the profit margins too slim to justify the effort, Neely noted.

"Without public sector subsidies, the numbers just don't work. Just wanting more affordable housing does not get it there," he said.

For more articles by Broderick Perkins, please press here .

Published: June 8, 2001

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Broderick Perkins parlayed a career in old-school journalism into a contemporary digital news service that really hits home. The award-winning consumer journalist, originally from Wilmington, DE, is founder, publisher and executive editor of the bootstrap DeadlineNews Group, a Silicon Valley-based editorial content and consulting service specializing in residential real estate, consumer news and related editorial consulting services. The DeadlineNews Group includes the website, DeadlineNews.com, offering real estate editorial content and consulting services, and its back shop, the Deadline Newsroom, an open house on news that really hits home. Perkins obtained his formal journalism education from University of Delaware and a journalism boot camp, the Institute of Journalism Education at the University of California-Berkeley. He went on to 20 years of service as a daily newspaper journalist at the Wilmington, DE News Journal and San Jose, CA Mercury News. Perkins covered housing on the San Jose Mercury News reporting team which earned a General News Reporting Pulitzer Prize in 1989 for coverage of the Loma Prieta earthquake. He has also produced real estate, consumer and small business content for the Wall Street Journal, Los Angeles Times, RealtyTimes.com, Nolo.com, Better Homes and Gardens, the National Association of Realtors, Homestore/Move and Intuit/Quicken among more than three dozen publications. In addition to managing the DeadlineNews Group, Perkins most recently served as chief editorial consultant for Nolo's Essential Guide To Buying Your First Home, Nolo, and writes real estate television scripts for RealtyTimes.com.