THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Saturday, September 24, 1994 TAG: 9409220329
SECTION: REAL ESTATE WEEKLY PAGE: 03 EDITION: FINAL
SOURCE: By MYLENE MANGALINDAN, STAFF WRITER
LENGTH: Medium: 68 lines
Rehabilitation doesn't sound too glamorous. But Norfolk-based S.L. Nusbaum Realty Co. actually relishes the idea.
The Norfolk-based commercial real estate company has bought seven apartment complexes since 1991 to rehabilitate, or restore to its former condition. Currently, the firm, which manages strip malls, multifamily complexes, industrial and office space, is rehabbing several properties under Virginia Housing Development Authority financing, at a time when demand is growing for apartments and other rentals.
One of the firm's recent local acquisitions, Indian Creek Apartments, a 352-unit complex covering 23 acres at 1101 Craftsman Drive in Virginia Beach, is undergoing renovation. The apartments should be finished by fall next year. In the meantime, improvements are being made for tenants who already reside at the complex.
Once the multifamily units are rehabbed - everything mechanical will be fixed or upgraded, plus other cosmetic improvements - they will be rented to moderate-income families, said property manager Greg Papadopoulos. About 40 percent of the apartments will be reserved for moderate-income families, households that make less than $45,000 yearly.
The Virginia Housing and Development Authority is making apartment rehabilitations attractive to companies like S.L. Nusbaum by offering tax-free interest rate to finance the renovations and money to complete the restoration. In the long term, Nusbaum will gain tenants for its improved buildings, another notch in its property-management portfolio.
At the same time, the improvements will prevent existing property from deteriorating into a slum, said Wendell Franklin, senior vice president at Nusbaum.
``We're trying to refurnish the property and keep it in the marketplace, up to today's standard,'' he said. ``We're trying to improve the quality of living.''
Some landlords or property owners allow the real estate that they rent to deteriorate because they fail to make improvements and put money back into the property. As the condition of the property worsens, the value of the real estate slides. Families that can't afford to live in higher-priced areas are forced to live in unmaintained apartments that are hazardous to tenants' safety.
Like other real estate firms that rehabilitate property, Nusbaum's work prevents that situation. It's replacing the air conditioning and gas furnace with updated, efficient units that will save tenants money on utilities. Countertops, stoves, smoke detectors and other household fixtures are being changed.
On a recent property tour, Franklin ordered uneven concrete sidewalks that may cause residents to trip and exposed pipes to be improved or replaced. The entire environment and atmosphere of the complex will be changed to reflect its' new name, Brookfield Apartments. White fences will surround the property and a bridge will be placed over the creek that runs through the property.
Because these rental units become people's homes, property managers must maintain them vigilantly. ``People stay in apartments longer,'' he said. ``No one thinks of apartment dwellers as clients but they are.'' ILLUSTRATION: Staff photo by Charlie Meads
Greg Papadopoulos, left, property manager, and Wendell Franklin,
managing general partner, look over the model unit in Indian Creek
Apartments in Virginia Beach. S.L. Nusbaum Realty Co., owner of the
facility, is sprucing up the flats with help from the state.
by CNB