The comeback in Karlín continues with the opening of Kollarova 14, a unique residential development that fronts classical Karlín Square. Featuring the reconstruction of a mid-19th-century building, the development fuses historical and modern architectural elements, preserving old industrial spaces and building details in a handsome, updated setting.

The project was done by Real Estate Karlín-Palác, an arm of the Real Estate Karlín Group (REKG), which from 1996 through 2004 worked solely in the commercial market. After developing approximately 100,000 square meters (1.1 million square feet) of office space in Prague, according to Marketing Manager Milorad Miškovič, the company specifically chose Kollarova 14 as its foray into the residential market for a combination of reasons.

The initial attraction was the relatively modest size of the building and the interior spaces. "It was an ideal pilot project because we were entering into a complete different market segment," Miškovič says. "It was a great opportunity to learn with a completely different set of rules and regulations on a smaller scale."

Karlín also offers attractive opportunities to work with historic structures. "It's interesting in this respect because it's a refurbishment of an existing building facing the main square and still a modern living space," says Miškovič.

There are 20 residential units in the building with floor areas ranging from 34 to approximately 160 square meters — two duplexes, one three-bedroom flat, two two-bedroom flats, seven one-bedroom flats and six studios. In keeping with the original style of the building, the hallways feature half-open stone staircases and cast-iron molded handrails in the galleries. The supporting arches have been preserved throughout the infrastructure.

The modern architectural approach to home living includes a shared interior space in the courtyard. A parking lot with 16 spaces occupies part of the ground floor, which is adjacent to the courtyard space. The roof covering these parking spaces also serves as a grassy terrace for the first-floor flats. A bright glass lift conjoins the original building with the newly constructed section, and the flats have a private terrace or balcony facing south. The design of the extended terraces also provides maximum privacy.

The location of the project was another incentive for the company, and it's easy to see why. The majestic Sts. Cyril and Methodius Church gives the neighborhood a serene feel, along with a park flanked by the most extensive tree-lined avenue in the city. Located three kilometers east of city center, Kollarova 14 offers an easy commute — the Křižíkova metro station is a brisk 200-meter (656-foot) walk away.

The majority of the units were sold well before the project's completion, with the remaining two flats snapped up the night of the public showing, Feb. 2. The average purchase price is approximately 51,000 Kč ($2,142) per square meter (plus VAT) of residential space, and 42,000 Kč (plus VAT) per square meter of nonresidential floor area. Šafer Hajek Architekti designed both the reconstruction of the original tenement building and the newer section.

The opening of Kollarova 14 marks another important step in the redevelopment of Karlín, which before the 2002 floods was starting to blossom as a business area, but generated little residential interest. However, with the surge in office development, Miškovič says it's only natural that people would start looking to Karlín for living space.

"There is only one rather technical problem," he says, referring to the freeway that separates the neighborhood from the city center. "But imagine there is no highway. If there weren't this concrete barrier, you would not notice any separation between Prague 1 and Prague 8. There is no other direction to expand from the center of Prague."

In some respects, REKG is following the lead of other pioneers who recognized the area's potential early on. "There are two groups of buyers that helped give these neighborhoods a boost from a residential point of view," Miškovič says. "Foreigners living in Prague and foreign investors who live abroad do not have this perception of the area as not being in central Prague. To them this is Soho in New York or Soho in London. And now Czechs are following the trends, which is perfectly normal in the real estate world."

And REKG's timing appears to be very good, so much so that it has several other residential projects in the works. "After just a few months of marketing and sales, the response was so overwhelming that we started construction on a new project called River Diamond," Miškovič says. "It will be the first luxury apartment waterfront project of its kind in Prague since World War II. We plan to continue development in Karlín, Invalidova and Libeň — we should have up to 5,000 luxury units when we finish our job in 15 years' time. We want to establish a completely new luxury living standard for the city."