{"id":229397,"date":"2021-04-17T18:03:00","date_gmt":"2021-04-17T15:03:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/no-vacancy-heres-one-fix-for-the-affordable-housing-shortage\/"},"modified":"2021-04-17T18:03:00","modified_gmt":"2021-04-17T15:03:00","slug":"no-vacancy-heres-one-fix-for-the-affordable-housing-shortage","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/no-vacancy-heres-one-fix-for-the-affordable-housing-shortage\/","title":{"rendered":"#\n  No vacancy? Here\u2019s one fix for the affordable-housing shortage"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a373af102323\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a373af102323\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/no-vacancy-heres-one-fix-for-the-affordable-housing-shortage\/#Converting_empty_hotels_and_office_buildings_into_residential_developments_could_help_solve_the_affordable-housing_shortage_%E2%80%94_but_do_the_numbers_work\" >Converting empty hotels and office buildings into residential developments could help solve the affordable-housing shortage \u2014 but do the numbers work?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/no-vacancy-heres-one-fix-for-the-affordable-housing-shortage\/#Manhattans_historic_70_Pine_is_a_protected_office-to-residential_conversion_that_helps_create_a_diverse_skyline_Photo_Stephen_B_Jacobs_Group\" >Manhattan&#8217;s historic 70 Pine is a protected, office-to-residential conversion that helps create a diverse skyline. Photo: Stephen B. Jacobs Group<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/no-vacancy-heres-one-fix-for-the-affordable-housing-shortage\/#Hotels_are_one_%E2%80%98affordable_solution\" >Hotels are one \u2018affordable\u2019 solution<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/no-vacancy-heres-one-fix-for-the-affordable-housing-shortage\/#In_this_Branson_Mo_Days_Inn_apartment_conversion_renamed_Platos_Cave_rents_range_from_495_for_a_studio_to_625_for_a_one-bedroom_unit_Photo_Platos_Cave\" >In this Branson, Mo., Days Inn apartment conversion, renamed Plato\u2019s Cave, rents range from $495 for a studio to $625 for a one-bedroom unit. Photo: Plato\u2019s Cave<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/no-vacancy-heres-one-fix-for-the-affordable-housing-shortage\/#The_lobby_at_Everett_Mills_in_Lawrence_Mass_The_mixed-use_development_25_miles_from_Boston_has_parking_on_site_and_at_an_adjacent_860-space_deck_It_is_walking_distance_from_the_commuter_railway_Photo_Robert_Lussier\" >The lobby at Everett Mills, in Lawrence, Mass. The mixed-use development 25 miles from Boston has parking on site and at an adjacent 860-space deck. It is walking distance from the commuter railway. Photo: Robert Lussier<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/no-vacancy-heres-one-fix-for-the-affordable-housing-shortage\/#Tougher_conversion\" >Tougher conversion<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/buradabiliyorum.com\/en\/no-vacancy-heres-one-fix-for-the-affordable-housing-shortage\/#Converting_offices_at_70_Pine_into_apartments_while_respecting_preservation_requirements_was_difficult_and_turned_some_developers_away_says_architect_Stephen_Jacobs_Photo_Stephen_B_Jacobs_Group\" >Converting offices at 70 Pine into apartments while respecting preservation requirements was difficult and turned some developers away, says architect Stephen Jacobs. Photo: Stephen B. Jacobs Group<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/buradabiliyorum.com\/en\/no-vacancy-heres-one-fix-for-the-affordable-housing-shortage\/#The_adaptive-reuse_of_the_former_offices_at_70_Pine_in_Manhattan_features_studios_up_to_four-bedroom_apartments_Photo_Stephen_B_Jacobs_Group\" >The adaptive-reuse of the former offices at 70 Pine in Manhattan features studios up to four-bedroom apartments. Photo: Stephen B. Jacobs Group<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/buradabiliyorum.com\/en\/no-vacancy-heres-one-fix-for-the-affordable-housing-shortage\/#Jacob_Passy\" >Jacob Passy<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  No vacancy? Here\u2019s one fix for the affordable-housing shortage<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Converting_empty_hotels_and_office_buildings_into_residential_developments_could_help_solve_the_affordable-housing_shortage_%E2%80%94_but_do_the_numbers_work\"><\/span>\n  Converting empty hotels and office buildings into residential developments could help solve the affordable-housing shortage \u2014 but do the numbers work?<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div class=\"cx--next\">\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000227533\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       The real estate market has two growing problems: a serious short-age of affordable housing, especially for renters, and hospitality and office buildings in distressed states because of COVID-19.<\/p>\n<p> Could the second challenge offer a solution for the first?<\/p>\n<p>\u201cWe should convert vacant commercial space to supportive and affordable housing, and we should do it now,\u201d New York Gov. Andrew Cuomo has said.<\/p>\n<div class=\"paywall\">\n       Retrofitting real estate for a new purpose is not a new concept, but the strains of the pandemic bring new light to the concept.<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaIllustration\n            inline\n  article__inset\n          article__inset--type-InsetMediaIllustration\n            article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:66.640625%;\" data-mobile-ratio=\"66.640625%\" data-layout-ratio=\"66.640625%\" data-subtype=\"\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-323286?width=140&amp;size=1.5005861664712778 140w,\nhttps:\/\/images.mktw.net\/im-323286?width=540&amp;size=1.5005861664712778 540w,\nhttps:\/\/images.mktw.net\/im-323286?width=620&amp;size=1.5005861664712778 620w,\nhttps:\/\/images.mktw.net\/im-323286?width=700&amp;size=1.5005861664712778 700w,\nhttps:\/\/images.mktw.net\/im-323286?width=860&amp;size=1.5005861664712778 860w,\nhttps:\/\/images.mktw.net\/im-323286?width=1260&amp;size=1.5005861664712778 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-323286?width=620&amp;size=1.5005861664712778\" data-enlarge=\"https:\/\/images.mktw.net\/im-323286?width=1260&amp;size=1.5005861664712778\" alt=\"\" title=\"Manhattan's historic 70 Pine is a protected, office-to-residential conversion&lt;br&gt;that helps create a diverse skyline.&lt;br&gt;Photo: Stephen...\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\">\n<h4 class=\"wsj-article-caption-content\"><span class=\"ez-toc-section\" id=\"Manhattans_historic_70_Pine_is_a_protected_office-to-residential_conversion_that_helps_create_a_diverse_skyline_Photo_Stephen_B_Jacobs_Group\"><\/span>Manhattan&#8217;s historic 70 Pine is a protected, office-to-residential conversion<br \/>that helps create a diverse skyline.<br \/>Photo: Stephen B. Jacobs Group<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/figcaption><\/figure>\n<\/div>\n<p>       \u201cAdaptive reuse is as old as real estate,\u201d said Richard Rubin, CEO of Repvblik, a Los Angeles\u2013based developer that converts commercial real estate into housing.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Hotels_are_one_%E2%80%98affordable_solution\"><\/span>Hotels are one \u2018affordable\u2019 solution<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Repvblik bought a 400-room former Days Inn complex in Branson, Mo., for conversion into studio and one-bedroom apartments. Since the property was purchased in April 2018, the company has completed two of the six residential buildings as well as a clubhouse with a gym and a pool. The property, called Plato\u2019s Cave, is <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roaching 50% occupancy in its completed portions. Rents range from $495 for a studio apartment to $625 for a one-bedroom unit.<\/p>\n<p>Rubin\u2019s company has recently acquired a shuttered Ramada Inn in northern Alabama that it plans to convert into 120 one-bedroom housing units as a joint venture with Drever Atelier Partners. Repvblik is targeting late summer 2021 for the first phase to open, with rents below $600 a month. Repvblik plans to begin under-writing deals on office conversions as well. Rubin expects there will<br \/>be significant distress in the office market starting later this year into 2022 and beyond, bringing buying opportunities.<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaIllustration\n            inline\n  article__inset\n          article__inset--type-InsetMediaIllustration\n            article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:66.875%;\" data-mobile-ratio=\"66.875%\" data-layout-ratio=\"66.875%\" data-subtype=\"\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-323297?width=140&amp;size=1.4953271028037383 140w,\nhttps:\/\/images.mktw.net\/im-323297?width=540&amp;size=1.4953271028037383 540w,\nhttps:\/\/images.mktw.net\/im-323297?width=620&amp;size=1.4953271028037383 620w,\nhttps:\/\/images.mktw.net\/im-323297?width=700&amp;size=1.4953271028037383 700w,\nhttps:\/\/images.mktw.net\/im-323297?width=860&amp;size=1.4953271028037383 860w,\nhttps:\/\/images.mktw.net\/im-323297?width=1260&amp;size=1.4953271028037383 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-323297?width=620&amp;size=1.4953271028037383\" data-enlarge=\"https:\/\/images.mktw.net\/im-323297?width=1260&amp;size=1.4953271028037383\" alt=\"\" title=\"In this Branson, Mo., Days Inn apartment conversion, renamed Plato&amp;rsquo;s Cave, rents range from $495...\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\">\n<h4 class=\"wsj-article-caption-content\"><span class=\"ez-toc-section\" id=\"In_this_Branson_Mo_Days_Inn_apartment_conversion_renamed_Platos_Cave_rents_range_from_495_for_a_studio_to_625_for_a_one-bedroom_unit_Photo_Platos_Cave\"><\/span>In this Branson, Mo., Days Inn apartment conversion, renamed Plato\u2019s Cave, rents range from $495 for a studio to $625 for a one-bedroom unit.<br \/>Photo: Plato\u2019s Cave<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/figcaption><\/figure>\n<\/div>\n<p>       Prior to COVID-19, real estate investment crowdfunding marketplace RealtyMogul Co. had tracked a lone transaction featuring a hotel-to-multifamily conversion, according to its CEO, Jilliene Helman. By February of this year, RealtyMogul had seen five additional transactions of this type submitted to its platform, though the company opted not to pursue deals in those cases. Earlier this year, the company had a deal go live featuring the historic mill Everett Mills, in Lawrence, Mass., which is being converted into a development featuring what it bills as affordable multifamily units and renovated office space and other mixed-use.<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaIllustration\n            inline\n  article__inset\n          article__inset--type-InsetMediaIllustration\n            article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:66.484375%;\" data-mobile-ratio=\"66.484375%\" data-layout-ratio=\"66.484375%\" data-subtype=\"\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-323295?width=140&amp;size=1.5041128084606346 140w,\nhttps:\/\/images.mktw.net\/im-323295?width=540&amp;size=1.5041128084606346 540w,\nhttps:\/\/images.mktw.net\/im-323295?width=620&amp;size=1.5041128084606346 620w,\nhttps:\/\/images.mktw.net\/im-323295?width=700&amp;size=1.5041128084606346 700w,\nhttps:\/\/images.mktw.net\/im-323295?width=860&amp;size=1.5041128084606346 860w,\nhttps:\/\/images.mktw.net\/im-323295?width=1260&amp;size=1.5041128084606346 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-323295?width=620&amp;size=1.5041128084606346\" data-enlarge=\"https:\/\/images.mktw.net\/im-323295?width=1260&amp;size=1.5041128084606346\" alt=\"\" title=\"The lobby at Everett Mills, in Lawrence, Mass. The mixed-use development 25 miles from Boston...\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\">\n<h4 class=\"wsj-article-caption-content\"><span class=\"ez-toc-section\" id=\"The_lobby_at_Everett_Mills_in_Lawrence_Mass_The_mixed-use_development_25_miles_from_Boston_has_parking_on_site_and_at_an_adjacent_860-space_deck_It_is_walking_distance_from_the_commuter_railway_Photo_Robert_Lussier\"><\/span>The lobby at Everett Mills, in Lawrence, Mass. The mixed-use development 25 miles from Boston has parking on site and at an adjacent 860-space deck. It is walking distance from the commuter railway.<br \/>Photo: Robert Lussier<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/figcaption><\/figure>\n<\/div>\n<p>       \u201cWe\u2019re actively looking for hospitality-to-multifamily conversion,\u201d Helman said. \u201cThey are going to be, in <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>, more affordable than other multifamily in the submarket, because the floor plates are smaller.\u201d<\/p>\n<p>According to Helman, it\u2019s conceivable that a hotel could be purchased for around $40,000 a unit and the same amount put into refurbishments, and then be sold for $120,000 a unit. One factor making these conversions so affordable is the over-lap between hotel and apartment design: plumbing and unit layouts often remain untouched, so generally a kitchen update and overall refresh are all that\u2019s needed.<br \/>Hotel economics have shifted in favor of these projects in the wake of the pandemic.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>\u201cMost well-located hotels were not in distress pre-COVID \u2014 they were performing,\u201d Helman said. But with tourists largely staying home, whether by choice or by government mandate, many hotel operators are struggling, particularly smaller, independent operators that do not have access to the cash reserves that chain hotels do.<\/p>\n<p>Over 3,100 commercial mortgage-backed securities \u2014 representing some $87 billion in debt \u2014 are backed by hotel properties across the U.S., according to real estate data firm Trepp LLC. Lodging is the third- largest property type in the CMBS universe by outstanding balance. In June 2020, the lodging sector\u2019s delinquency rate hit a record high of 24.3% before falling back to 19.43% by autumn. In some metro areas, the delinquency rate was much higher. In Houston and Chicago, Trepp reported, over half of the outstanding balance for hotels was delinquent as of November.<\/p>\n<p>Over a third of the outstanding balance of lodging-related debt is scheduled to mature by the end of 2021, which could compound the sector\u2019s issues at a time when revenue has dropped by upwards of 60% per available room on an annual basis.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Tougher_conversion\"><\/span>Tougher conversion<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>While politicians may devote attention to converting office space into housing, the sector has remained relatively resilient for now. The delinquency rate for office CMBS was only 2.5% as of October. Companies continue to sign leases \u2014 but that is expected to change over time, on a localized level, analysts say. The pandemic accelerated a shift to the suburbs and an embrace of work-from-home technologies that could stress office-building occupancy in major cities.<\/p>\n<p>\u201cCompanies are realizing that all work does not have to be done at the office,\u201d said Nick Bailey, chief customer officer at RE\/MAX.<\/p>\n<p>Converting an office building into apartments is, in most cases, more complex than a hospitality-to-apartments conversion.<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaIllustration\n            inline\n  article__inset\n          article__inset--type-InsetMediaIllustration\n            article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:80%;\" data-mobile-ratio=\"80%\" data-layout-ratio=\"80%\" data-subtype=\"\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-323301?width=140&amp;size=1.25 140w,\nhttps:\/\/images.mktw.net\/im-323301?width=540&amp;size=1.25 540w,\nhttps:\/\/images.mktw.net\/im-323301?width=620&amp;size=1.25 620w,\nhttps:\/\/images.mktw.net\/im-323301?width=700&amp;size=1.25 700w,\nhttps:\/\/images.mktw.net\/im-323301?width=860&amp;size=1.25 860w,\nhttps:\/\/images.mktw.net\/im-323301?width=1260&amp;size=1.25 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-323301?width=620&amp;size=1.25\" data-enlarge=\"https:\/\/images.mktw.net\/im-323301?width=1260&amp;size=1.25\" alt=\"\" title=\"Converting offices at 70 Pine into apartments while respecting preservation requirements was difficult and turned...\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\">\n<h4 class=\"wsj-article-caption-content\"><span class=\"ez-toc-section\" id=\"Converting_offices_at_70_Pine_into_apartments_while_respecting_preservation_requirements_was_difficult_and_turned_some_developers_away_says_architect_Stephen_Jacobs_Photo_Stephen_B_Jacobs_Group\"><\/span>Converting offices at 70 Pine into apartments while respecting preservation requirements was difficult and turned some developers away, says architect Stephen Jacobs.<br \/>Photo: Stephen B. Jacobs Group<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/figcaption><\/figure>\n<\/div>\n<p>       \u201cSometimes the stairs and elevators happen to be in a workable location,\u201d said Stephen Jacobs, founder and president of the Stephen B. Jacobs Group, an architecture and planning firm that specializes in adaptive-reuse projects. \u201cBut sometimes to make the building efficient they have to be relocated. It\u2019s very, very much building-specific.\u201d<\/p>\n<p>In one project Jacobs completed \u2014 70 Pine St. in Manhattan \u2014 part of the challenge was the building\u2019s podium, or base. It\u2019s a New York landmark, meaning it could not be significantly altered.<\/p>\n<p>\u201cHow to convert that podium into apartments without demolishing a piece in the building was extremely difficult,\u201d he said. \u201cA lot of people passed on that building because they didn\u2019t know how to do it.\u201d<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetPullQuote\n            inline\n    scope-web|mobileapps\n  article__inset\n          article__inset--type-InsetPullQuote\n            article__inset--inline\n  \"><\/p>\n<div class=\"wsj-article-pullquote article__inset__pullquote \">\n<p class=\"pullquote-content article__inset__pullquote__quote\">\n        <span class=\"l-qt article__inset__pullquote__mark--left\">\u201c<\/span><br \/>\n        \u2018Today, the office buildings that we\u2019re talkingabout converting \u2026 they\u2019re 90 cents on thedollar. The existing real estate has not gottencheap enough yet.\u2019<br \/>\n        <span class=\"r-qt article__inset__pullquote__mark--right\">\u201d<\/span><\/p><\/div>\n<\/p><\/div>\n<p>       Indeed, a lack of expertise in adaptive reuse could prevent it from becoming a mainstream approach in the near future. It isn\u2019t difficult to find architects and builders who know how to tear down and rebuild from scratch. It\u2019s an entirely different proposition to gut an office building from the inside while maintaining the exterior.<\/p>\n<p> \u201cOne of the reasons why it\u2019s easy to build suburban houses is because everybody knows how to do it right,\u201d said Adam Ducker, CEO of real estate advisory firm RCLCO. \u201cThe construction companies can price it very aggressively because they know exactly what they\u2019re doing. Converting these buildings is full of unknowns and risk.\u201d<\/p>\n<p>With fewer construction firms to choose from, developers often are forced to spend more. That makes the economics of adaptive reuse particularly challenging, especially given the prices that commercial real estate is still fetching.<\/p>\n<p>In New York, for instance, the total market value for commercial properties \u2014 including everything from warehouses to hotels \u2014 fell 15.7% between 2020 and early 2021, to $274.6 billion, or roughly $233 per square foot, according to the city\u2019s Department of Finance. Office-building values dropped in line with the overall average for all commercial real estate, falling 15.6% from 2020, whereas the value of retail buildings and hotels declined roughly 20%.<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaIllustration\n            inline\n  article__inset\n          article__inset--type-InsetMediaIllustration\n            article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:66.640625%;\" data-mobile-ratio=\"66.640625%\" data-layout-ratio=\"66.640625%\" data-subtype=\"\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-323300?width=140&amp;size=1.5005861664712778 140w,\nhttps:\/\/images.mktw.net\/im-323300?width=540&amp;size=1.5005861664712778 540w,\nhttps:\/\/images.mktw.net\/im-323300?width=620&amp;size=1.5005861664712778 620w,\nhttps:\/\/images.mktw.net\/im-323300?width=700&amp;size=1.5005861664712778 700w,\nhttps:\/\/images.mktw.net\/im-323300?width=860&amp;size=1.5005861664712778 860w,\nhttps:\/\/images.mktw.net\/im-323300?width=1260&amp;size=1.5005861664712778 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-323300?width=620&amp;size=1.5005861664712778\" data-enlarge=\"https:\/\/images.mktw.net\/im-323300?width=1260&amp;size=1.5005861664712778\" alt=\"\" title=\"The adaptive-reuse of the former offices at 70 Pine in Manhattan features studios up to...\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\">\n<h4 class=\"wsj-article-caption-content\"><span class=\"ez-toc-section\" id=\"The_adaptive-reuse_of_the_former_offices_at_70_Pine_in_Manhattan_features_studios_up_to_four-bedroom_apartments_Photo_Stephen_B_Jacobs_Group\"><\/span>The adaptive-reuse of the former offices at 70 Pine in Manhattan features studios up to four-bedroom apartments.<br \/>Photo: Stephen B. Jacobs Group<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/figcaption><\/figure>\n<\/div>\n<p>       A Department of Finance spokesperson noted that the property values the agency uses are collected for the purpose of property taxation, making them different from the market value. Still, the figures show that the pandemic has not rendered these real-estate assets virtually worthless.\u00a0<\/p>\n<p>\u201cToday, the office buildings that we\u2019re talking about converting \u2014 even after COVID, with all the uncertainty \u2014 they\u2019re not worth pennies on the dollar; they\u2019re 90 cents on the dollar,\u201d said Ducker, who is also vice chair of the Urban Land Institute\u2019s Redevelopment and Reuse Council. \u201cThe existing real estate has not gotten cheap enough yet.\u201d<\/p>\n<p>Proponents of adaptive reuse contend there are other savings to consider. \u201cWe\u2019re all talking about conserving energy and are concerned about our carbon footprint,\u201d Jacobs said. \u201cThrowing away buildings is a waste of energy. Every brick that already exists, it doesn\u2019t take energy to produce it.\u201d<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Jacob Passy\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Jacob_Passy\"><\/span>Jacob Passy<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D378CDCE2AB9%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# No vacancy? Here\u2019s one fix for the affordable-housing shortage &#8221; Converting empty hotels and office buildings into residential developments could help solve the affordable-housing shortage \u2014 but do the numbers work? The real estate market has two growing problems: a serious short-age of affordable housing, especially for renters, and hospitality and office buildings in&#8230;<\/p>\n","protected":false},"author":1,"featured_media":229398,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-229397","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/229397","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=229397"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/229397\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/229398"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=229397"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=229397"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=229397"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}