Dealing With Hairy Adaptive Reuse Developments

MIAMI—Resource Real Estate has worked on several strategic multifamily adaptive reuse developments in recent years—and is in the midst of one right now. We caught up with Alan Feldman, CEO of Resource, to learn more about his firm's approach to adaptive reuse development and how he deals with the challenges that spring up along the way. Read part one of this exclusive interview, Can Adaptive Reuse Work With Large Projects?, if you missed it.

GlobeSt.com: Are you working on any adaptive reuse projects?

Feldman: We recently bought the Iroquois apartment building in Philadelphia, PA. When we bought it, the entrance to the high-rise building was guarded by commercial tenants. The ground floor design was dark and imposing, and the commercial tenants were frankly an ugly entrance way to an otherwise nice residential building.

Improvements and related work to the building included moving the commercial tenants to a different part of the building's lobby and placing a beautiful glass-walled gym and lounge in the front entranceway. The commercial tenants liked the drastically improved building and lobby, which in turn improved the positioning of their businesses, Finally, the building was renamed to the “Vista” giving it a new image to go along with its improved physical appearance, and a name that reflected the building's awesome views of the Philadelphia skyline.

GlobeSt.com: What are the biggest challenges with adaptive reuse projects?

Feldman: The biggest, most underestimated challenge, is time. When time increases, literally all the costs associated with renovating a building increase. You always want to work with somebody who has a lot of experience, to ensure as much as you can that time does not become an issue, certainly a difficult thing to manage because there is always the chance for something to go wrong.

GlobeSt.com: Can you give me an example of a creative way you've overcome challenges with an adaptive use project?

Feldman: One example would be what we did with the Vista apartments in Philadelphia, and another would be with a building we bought in Dayton, OH. Both had retailers and residents and our intent is to keep all residents as happy as possible.

For instance, we were happy to help the retailers market directly to the residents living above them. Specifically, if you live in the Dayton property, you receive a coupon for a free haircut or manicure from the salon downstairs. This serves as both a perk for a resident and a marketing benefit to the business on the property.