IBJNews

New owner to rehab two century-old apartment buildings

Back to TopCommentsE-mailPrintBookmark and Share
On The Beat Industry News In Brief

A local real estate veteran who had planned to retire has instead jumped back into the game with the purchase of two vacant downtown properties he plans to convert to market-rate apartments.

John Watson, who was a partner with Carl Van Rooy in Van Rooy Properties Group from 1986 to 2006, formed Core Redevelopment Inc. at the end of August and on Sept. 1 purchased two buildings at Senate and North streets that will house 71 one-bedroom apartments and six studio apartments.

The buildings on the southeast and southwest corners of Senate and North and about a block east of the Central Canal were built in 1900 and 1903 as the Avondale and Deauville apartments. They were rehabbed in 1976 as low-income housing and have been vacant since November.

A developer plans to rennovate the Avondale and Deauville apartments. (IBJ Photo/Robin Jerstad)

They had been owned since 2004 by a local partnership. Tenants in the buildings had been eligible for housing assistance payments through a program of the federal government. When the property fell out of compliance with that program a few years ago, occupancy took a nosedive and the entity that owned the building fell behind on its mortgage with Wells Fargo Bank.

Watson bought the buildings for a little more than $1 million—about half the mortgage balance—and plans to spend another $1 million rehabbing the units.

Watson said moderating prices caused him to jump back into real estate.

“I was going to retire and go off in the sunset,” he said. “When I was stepping away, people were paying crazy prices. But then the market changed.”

The Senate Avenue apartments, which average about 650 square feet each, will rent for $600 to $650 a month, Watson said. The first units should be ready for tenants by Dec. 1.

Amy Burmeister, a multifamily housing specialist with the local office of CB Richard Ellis who represented Watson in the transaction, said rent growth is driving interest in downtown apartment ownership.

Downtown rents have grown 6.7 percent in the last two years compared with 1 percent to 2 percent in other parts of the city.

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Can your dog sign a marriage license or personally state that he wishes to join you in a legal union? If not then no, you cannot marry him. When you teach him to read, write, and speak a discernible language, then maybe you'll have a reasonable argument. Thanks for playing!

  2. Look no further than Mike Rowe, the former host of dirty jobs, who was also a classically trained singer.

  3. Current law states income taxes are paid to the county of residence not county of income source. The most likely scenario would be some alteration of the income tax distribution formula so money earned in Marion co. would go to Marion Co by residents of other counties would partially be distributed to Marion co. as opposed to now where the entirety is held by the resident's county.

  4. This is more same-old, same-old from a new generation of non-progressive 'progressives and fear mongers. One only needs to look at the economic havoc being experienced in California to understand the effect of drought on economies and people's lives. The same mindset in California turned a blind eye to the growth of population and water needs in California, defeating proposal after proposal to build reservoirs, improve water storage and delivery infrastructure...and the price now being paid for putting the demands of a raucous minority ahead of the needs of many. Some people never, never learn..

  5. I wonder if I can marry him too? Considering we are both males, wouldn't that be a same sex marriage as well? If they don't honor it, I'll scream discrimination just like all these people have....

ADVERTISEMENT