5 Properties You Can Buy in Some of the ‘World’s Coolest Neighborhoods’

If how “cool” a niche neighborhood in another country is factors in to your application for a loan, you’ll be laughed out of the bank. The quantitative nature of real estate finance cares little about such subjective measures. But if what you’re seeking is a place of permanence in a transforming part of a city with increasing foot traffic, undeniable curb appeal and intangible allure, then “cool” matters.

Of course, statistics and data should guide all investment decisions. But for buyers probing for insights about places where people actually hang out, resources like global publisher Time Out’s annual list of the 40 coolest neighborhoods throughout the world can be invaluable.

Last week, LoopNet compiled five retail properties available for lease in a handful of these cities.

Now, for long-term investors wanting to place their bets on buzzy prospects from San Francisco to Scotland, here are examples of properties where $10 million might let you buy something that most people will tell you isn’t for sale: cool.

Retail shop at 520 Biltmore Way

“Planned communities” are usually the antithesis of cool, but one of the U.S.’s oldest such areas, home to the University of Miami, comes in at number 26 on Time Out’s list. That's partly because its idealistic, walkable vision was actually realized, making Coral Gables one of the most pedestrian-friendly neighborhoods in Miami, according to Juan Arias, a director of market analytics for LoopNet’s publisher, CoStar Group.

The Miami Beach spot is known for its Miracle Mile, an upscale retail district adorned with independent shops like the decades-strong Books & Books and some of the cities’ best restaurants, including a few that have been recognized by the Michelin Guide, according to Time Out. The Miracle Mile also recently underwent a “significant facelift” with updated infrastructure and widened sidewalks — an effect that Arias said will only increase already-strong foot traffic to street-side businesses like the subject property.

“The [neighborhood] offers extensive low-rise retail that is nestled in palm trees, providing a genuinely tropical allure,” Arias continued. And this self-standing, nearly 2,000-square-foot property on Biltmore Way is a great example of that. The asking price, at $3,063 per square foot, is reflective of the area’s prestige and the kind of tenants that want to be a part of it.

Although it’s leased long-term to a hair salon and spa, the property is also being marketed as a good fit for future luxury condos or mixed-use development projects, as well as businesses such as medical, banking or licensed professionals — which shouldn’t be hard to come by in such a sought-after area. “Tenants are drawn to Coral Gables because of its walkability, low traffic congestion relative to Miami’s urban core and attractive residential neighborhoods,” Arias said.

In-line medtail at 1508-1512 E 53rd St

Hyde Park has long been overshadowed by many other so-called cool neighborhoods spread throughout the literally cool Windy City. A mostly affluent nabe, the South Lakefront enclave’s main claim to fame is the prestigious University of Chicago campus.

The university and its world-class medical system are a consistent driver of employment and housing demand in Hyde Park, CoStar Senior Director of Market Analytics, Rhea Stephen, told LoopNet. It’s no wonder that a medical office condo could potentially thrive here — especially when it’s positioned as a “medtail” location on a walkable shopping street with a storefront entrance.

Time Out, which put Hyde Park at number 19 for its debut on the annual list, mentioned the “wondrous” cultural staples such as the Museum of Science and Industry and Hyde Park Art Center, as well as the famous Jackson Park, the greenspace that the area is named for. These existing cultural institutions will soon be joined by the Obama Presidential Center, which is slated for completion in 2025 just steps away from the subject property.

Museums, art centers, libraries and public gathering spaces such as these are arguably the bedrock of culture, but to many, they’re a snooze. Afterall, you’ll never catch the Washington, D.C.’s National Mall on a list of coolest neighborhoods. But the write-up goes on to mention Hyde Park’s Frank Lloyd Wright architecture, charming boutiques and “outstanding” restaurants.

At less than $1 million, this 5,000-square-foot storefront with a medical office setup could be a steal. The university isn’t going anywhere, and from the sound of it, neither is the steady pipeline of multifamily development in the trendy neighborhood. With the Time Out bump, the cool factor only adds to the area’s appeal.

Residential-storefront combo at 5430-5498 Geary Blvd

A “microcosm of what makes San Francisco so special: natural beauty, rich culture, and incredible cuisine from every corner of the world,” is how Time Out described its 27th coolest neighborhood, Richmond District.

Nestled between the beach and the Golden Gate Park, the “vibrant corridors” of Richmond District lined with bakeries, dim sum spots and historic landmarks like the Balboa Theatre make Richmond District “one of the most exiting places to eat and play in San Francisco right now,” according to Time Out.

The neighborhood is mostly residential, which makes this property — a 100%-leased corner development with seven commercial units on the ground floor and eight residential units — a potential mixed-use paradise to park a double net investment. Current shops in the building include a taqueria, Japanese curry house, dry cleaners and a bank. The $7.1 million offering represents a 7% cap rate, according to the listing.

The district includes some of the most popular neighborhoods in San Francisco, said Nigel Hughes, a senior director of market analytics for CoStar. “The area contains an abundance of historic properties and a vibrant mix of retail, restaurant and entertainment destinations and benefits from good access to important amenities, including major medical and educational institutions.”

Anti-development neighborhood associations and low-density zoning are pivotal to the vibe of Richmond District, and Hughes said that’s a boon to buyers of existing properties like this. “With limited potential for new construction and consumer preferences shifting away from malls and shopping centers in favor of main street and neighborhood retail formats, existing properties in established retail and commercial zones are well positioned to benefit,” he told LoopNet.

“Office mansion” at 37 Madison Ave

Coming in at number 38 on the list, The Annex is “Toronto’s coolest place to be right now,” according to Time Out.

As with many other neighborhoods on this list, the cultural ether permeating this area is a huge draw, with the University of Toronto, Royal Ontario Museum, the acclaimed Koerner Concert Hall and the new KESKUS International Estonian Centre anchoring a mix of “wealth, fine dining and luxury shopping,” according to this property’s listing broker, Howard Lende.

The 7,262-square-foot boutique office, formerly a residential mansion built in 1883, is a picturesque example of the neighborhood’s prominent “Romanesque Revival” character, Lende added.

Lende, the director of Luxury Elite Properties and Forest Hill Real Estate, said that the “‘marque’ building represents the definition of Toronto Annex design.” Designed by Toronto’s most famous architect E.J. Lennox, the $4.4 million, three-floor mansion typifies the uniquely Torontonian architecture characterized by large Romanesque arches and Queen Anne-style adornments. It’s a style that makes up many of the neighborhood’s more than 500 protected historical buildings.

Storefront condo at 191 Great Junction St

Leith is an industrial port neighborhood that's been turned into a hip, adaptive reuse haven, according to Time Out, which ranked the nook of Scotland’s capital city at number 16 on its list this year. The former Biscuit Factory warehouse, for example, is now a rustic arts venture hosting vintage night markets, weddings and an annual “beverage festival,” which are indicative of the type of cultural programming this area of Edinburgh is now known for.

Close to the Leith Walk, a famous pub-lined street, this 740-square-feet retail condo is “ideal for hot food takeaway,” according to listing agent Greg Dykes of Griffin Webster. At only $171,605, an owner-user could maybe even recoup their outlay in a few busy Leith Walk nights.

“Leith is a buzzing port district, home to hip creatives and longtime locals. Waterfront seafood bistros and traditional pubs dot the Shore area,” Dykes told LoopNet. “The Royal Yacht Britannia, a former ocean-going royal residence, showcases elaborate state apartments and an onboard Rolls-Royce engine which was assembled on the Clyde. The riverside Water of Leith Walkway and Leith Walk, a busy street with food and thrift shops, link the area with the city centre.”