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A New Lease on Life
Douglas McWhirter
02/02/2004
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Across the country, investors and property owners with similar visions of renovating grand old movie palaces, derelict factories and other forgotten commercial structures are taking advantage of tax incentives and favorable real estate dynamics to monetize their passion for architectural preservation.
"Many investors see it as a mix of realizing investment goals while revitalizing urban centers," says Ken Bernstein, director of preservation issues at the Los Angeles Conservancy, a local historic preservation organization. "They want to preserve the sense of place that historic buildings give to a city, a sense
of connectedness between the past and the future. And," he adds, "these projects can also provide a tangible return on investment."
 For the investor with an eye on local economic trends, this tangible ROI often goes hand in hand with the economic revitalization of neighborhoods. It also hinges
on the often nostalgic value of architecturally significant buildings. "Any time you improve a building," says John Leith-Tetrault, the director of community partnerships at the National Trust for Historic Preservation in Washington, D.C., "the post-rehabilitation value will be greater. Plus, there is a long-term appreciation for the building, and consequently, buyers will pay more for the character of a ‘cool’ space." (Click image to enlarge)
Cool Spaces, Cool Tax Incentives
As a purveyor of restored urban "cool" spaces, Tom Gilmore, a Los Angeles architect and developer, enjoys an almost messianic aura in urban revitalization circles these days. Over the past three years, Gilmore has successfully rehabilitated several once-beautiful, commercial buildings on a seedy stretch of Main Street in downtown Los Angeles, turning the Old Bank District into an urban-chic neighborhood of airy residential lofts and leisurely sidewalk cafes. More importantly, he did so at a profit, proving once and for all that architectural nostalgia and urban revitalization in Los Angeles can be money-making propositions. Thanks to Gilmore’s pioneering efforts, downtown Los Angeles is now the hottest residential real estate market in the city. Neighborhoods are being revived, property values are rising, and refugees from Los Angeles’ notoriously bland suburbs are paying top dollar for residential property in a true urban setting.
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