ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Sunday, March 2, 1997 TAG: 9702280009
SECTION: BUSINESS PAGE: 1 EDITION: METRO
SOURCE: MAG POFF
The latest three apartments carved from the upper stories of downtown Roanoke storefronts were rented before the plaster was dry.
The trio of one-bedroom units, built above American General Financial at First Street and Luck Avenue Southwest, all went to professionals who had moved from other cities to take jobs in downtown Roanoke.
Builders of these new dwellings are Mike Warner and Jess Newbern.
Downtown Roanoke Inc. counts 25 apartments on second or third levels of central city buildings, although that may omit some owner-occupied quarters. In addition, Mill Mountain Theatre owns 12 studio apartments on Market Street for actors who come to Roanoke for limited performances, and a rooming house on West Campbell with 10 rooms.
Although it is virtually invisible to pedestrians and traffic, there's something of a housing boom under way downtown.
More upper-level apartments are under construction now at the former Hill Studio and above the One-Hour Cleaner, both facing Campbell Avenue on the Roanoke City Market. And developer Will Trinkle is planning to convert the State and City Building at Campbell Avenue and First Street into large luxury apartments.
Rentals of existing units range from $225 a month for an apartment on Salem Avenue to $650 a month for a dwelling in the first block of Church Avenue Southwest. Apartments are snatched up as fast as they are created, developers and landlords say.
The city is chipping away at the task of persuading owners of downtown buildings to convert their upper stories into living space. When the city began this drive, only the rooming house and theater dormitory existed.
Phil Sparks, the city's director of economic development, said such housing is essential for the future of downtown. "It's another component in the mix of the new downtown."
City officials have visited units that have been developed in Chattanooga, Tenn.; Cleveland; Richmond; Norfolk; and Charlotte, Greensboro and Winston-Salem, N.C.
They found, Sparks said, that an infusion of dwellers "creates more energy for the downtown."
Edwin Hall of Hall Associates Inc., a commercial realty firm, said downtown "is the core of the apple. If it rots, the whole valley will rot."
A downtown redevelopment plan prepared by Urban Design Associates of Pittsburgh said the demand for office space in the central city is dwindling, in Roanoke as well as nationally. Large amounts of sublease office space are available, creating a gap in filling up downtown buildings.
The consultants said office-users are unlikely to provide enough support to maintain downtown structures. "New uses, such as residential, must be explored to broaden the redevelopment options," they said.
The problem, however, is that "the private market has so far not been inclined or able to produce significant amounts of this housing," according to the report.
Nine local banks contribute to a pool that was created to help finance such upper-level housing. They recently doubled this pool from $500,000 to $1 million.
Matt Kennell, executive director of Downtown Roanoke Inc., said the money is available at interest as low as 2 points below the prime rate.
The banks recently granted loans of $100,000 each for the three new apartments on Luck Avenue and for two apartments (now combined into one large unit) above the new Hill Studio on Campbell Avenue between First and Second streets. The maximum amount for any single loan is $250,000.
Repayment terms vary up to a maximum of 15 years. The apartments created with money from the pool must remain in residential use throughout the term of the loan.
Participating banks are Southwest Virginia Savings Bank, NationsBank, Signet Bank, First Union National Bank, Crestar Bank, First Virginia Bank-Southwest, Central Fidelity National Bank, First American Federal Savings Bank and Valley Bank. They all participate in each loan.
Owners, developers or tenants who own or lease buildings downtown are eligible for the program. Applications are encouraged for rentals to people with a broad range of incomes.
The loans may be used only to create (or place back into service) residential units in structures built before 1991. Only upper-story residential improvements are eligible, except for a common facade and common systems.
Applications for loans from the pool are available from Downtown Roanoke Inc. in the Crestar Bank Building at 310 First St. S.W.
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