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Leslie Clement (413) 567-7887
Caring for clients along their real estate journey in Western Massachusetts |
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1986—1990 Restoration Days: Saving Springfield's Inner City Historic Homes
In the mid 1980’s, Leslie began buying and renovating abandoned homes in Springfield’s Maple Hill historic district. By 1985, with a crew of 12 tradespeople, she had renovated fourteen buildings into handsome multi-family properties which she then rented out and managed.
With sales agreements in hand to purchase eighteen additional apartments, Leslie structured a limited partnership whereby she raised $250,000 in private capital from investors who in exchange received significant investment tax credits and future tax deductions. Additional financing for the venture came from commercial loans and grant money from the City of Springfield.
The total cost of purchasing and renovating these buildings was $1,600,000. Because of the timing involved, the rehab work had to be done fast track --- within three months --- in order to insure that the limited partners would receive their tax credits before the tax laws changed in 1985. As general contractor, Leslie oversaw a crew of 25 tradespeople and met the required deadline.
The forty apartments within sixteen buildings, were rented up. The beauty of these restored apartments attracted market rate tenants who were willing to overlook the marginal character and reputation of the neighborhoods in which the units were located. At the time, the area was blighted, but there was the sense that things were under control. Other buildings were reasonably managed, and while there was drug activity on the streets, there was the sense of hope as properties throughout the area were being quickly bought up and done over. It seemed only a matter of time before all the blighted elements of the neighborhood would give way to brick sidewalks, fresh paint jobs and restored historic homes.
Once rented, the management was done by Leslie’s staff. The limited partnership had been structured whereby the partners continued to invest money over the first three years to offset operating expenses. These funds made a significant difference in keeping the units well maintained and expenses paid.
With the renovations of the buildings complete and units fully rented up, Leslie looked for new projects. There was the sense of urgency to finding new projects to keep her team working. At the time, real estate values were continuing to appreciate rapidly and banks were eager to lend money.
Lessons Learned Advice I Now Share With Clients First Lesson: What are the three most important rules in real estate? LOCATION! LOCATION! LOCATION! You can change a lot of things about a property —– the roof, the lay-out and the mechanicals, but you’ll never change its location. Second Lesson: Being a landlord is tough! And being a landlord in Massachusetts is even tougher! I prefer to take an easier route through life. Third Lesson: Up the happier side, these restoration years taught me a lot about architectural history as well as how buildings are put together. And I’m thrilled that I had the opportunity to save so many of Springfield’s historic homes.
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Before and After |
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Before and After |
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AWARDS: SPRINGFIELD HISTORICAL COMMISSION |