Home Blockchain News Explore the interior of a vacant school transformed into an apartment complex

Explore the interior of a vacant school transformed into an apartment complex

by Michael Stark

### Trio converts abandoned school into thriving apartment building

In a remarkable story of persistence and vision, Jesse Wig, Adam Colucci, and Dan Spanovich took a chance on an abandoned high school and turned it into an apartment building that is now reinvigorating a community.

#### Two Ventures of Triplets

Back in 2019, Wig, Colucci, and Spanovich made the bold move of purchasing the abandoned Bowtie High in Homestead, Pennsylvania for the sum of $100,000. After considerably converting the building into a 31-unit apartment complex, they unexpectedly found themselves faced with another opportunity when the school across the street, the Schwab School, went up for sale. So, the trio invested in the abandoned building, purchasing it for $90,000 in October 2020.

#### Renovation Challenges

The trio shared a common love of transforming neglected spaces into something valuable. Describing the renovation of the Schwab School as a significant challenge, Spanovich revealed the terrible condition of the building, which included trees growing on the first floor and major structural work that needed to be done. The total renovation took an extensive 18 months to complete.

#### Funding and Return on Investment

The team began the project with a budget of $3.2 million, but ultimately spent approximately $4.5 million on the renovation. This amount included a mortgage of $3.25 million, and the team’s own contribution of $1.25 million. They even made a small return on investment by selling an old pickup truck found in the building’s basement for $5,000.

#### Tax Credits and Occupancy

To take advantage of state and federal tax credits, the trio is awaiting around $800,000 in federal tax credits, and is also hoping to benefit from Pennsylvania state tax credits, which are available on a lottery basis. After a year of work, the converted Schwab School now boasts 33 apartments, with rent ranging from $950 to $1,450 for one-bedroom units and $1,550 to $1,950 for two-bedroom units. Since leasing began, the building has reached 85% occupancy and is turning a profit.

#### Additional Projects and Future Plans

While there are no immediate plans for another joint venture, each partner has been independently exploring other opportunities, including the purchase of additional buildings in different areas of Pennsylvania. Yet, in the eyes of Spanovich, the joy of bringing neglected structures back to life and witnessing the rejuvenation of the buildings is an unparalleled feeling.

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