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That emphasis on downtown development has come a long way from the yesteryear pushes to build malls and commercial centers on the outskirts of cities. One of North Dakota Gov. Doug Burgum’s hobbyhorses has been central urban development, part of a “Main Street Initiative’’ program that underscores the importance of downtown investment. “Vibrant community centers are a fundamental element of workforce development,” a state government website declares.

“Midwest cities, when they were originally built, most of them were designed around walkability,” said Mike Allmendinger, president of Fargo’s Kilbourne Group. “...but then soon after, they were designed around the automobile. And that happened across the entire Midwest.”

In that sense, the newly investors shaping downtowns in the upper Midwest often see themselves not just as building something new, but returning downtown cores to the accessible centers of city life that they once were.

Those pushes for new development are now transforming the Red River Valley, with a spate of new apartments and development both in Grand Forks and in Fargo. Cindy Graffeo, the executive director of Fargo’s Downtown Community Partnership, said that’s no surprise.

“(Younger people) want urban living and walkability, smaller footprints, more green living, proximity to the nightlife and restaurants and things to do,” she said. But she added that an interest in downtown living is big for baby boomers, too, who often want to downsize without sacrificing lifestyle. “That’s really kind of what makes a downtown fun, is that it’s so attractive to so many different kinds of people.”

The Fargo-based Kilbourne Group has been one of the most notable companies regularly investing in the city, recently completing three buildings with a total 363 apartments in downtown Fargo this summer. But the headwinds in the post-pandemic world are still notable; with interest rates rising, financing for big projects is more expensive. With a recent surge in the cost of materials, construction costs more, too.

“I think it affects us every single day. We’re going back to the drawing board every day and sharpening pencils looking for new ways to do things, getting more efficient,” said Adrienne Olson, vice president of communication at Kilbourne. “We had to go back to subcontractors and get new bids and refigure all the financing costs. We did still start the project. But every single day we’re faced with interesting challenges.”

It’s unclear when those headwinds will subside. As of this writing, Federal Reserve officials are still wrestling with significant inflation. It’s no longer the decades-high weight on the economy it once was, but still came in at a trailing 12-month 6.5% in December – leaving policymakers likely to hike borrowing costs further in 2023.

Jon Miskavige is president and CEO of Northridge Hospitality Management and Northridge Construction. He said he still sees downtown areas as a top-shelf real estate investment.

“I mean, we feel it’s probably the best place to be developing multifamily assets,” he said. “I think that the demand to live within the urban core (in) Fargo Grand Forks is probably the greatest it’s ever been.”

And for McKenzy Braaten, vice president of communications at West Fargo-based EPIC Companies, it’s a matter of duty to the community.

“The downtown, that’s the center. That’s the center of a lot of communities,” she said. “it’s not going away anytime soon. Some may take some hardships and fall on hard times. But that’s what’s getting re-built up…I highly encourage people to look at their downtown areas and invest in them. That’s what we have to do as community members.”