Repurpose + Revitalize

Congregate Housing Management

By Erica Rascón on Sep 21, 2015 in People

The concept of home comes in many shapes and forms. For the senior residents of South Hills in Pittsburg, home arrived in the shape of a high school. A school was probably one of the last places that seniors thought they would spend their golden years, yet Yardi client Congregate Management Services and its development arm a.m. Rodriguez Associates saw an unparalleled opportunity in the vacant property.

Account Manager Terri Zaegel recalls the conceptualization of the senior housing community. “The City actually came to Anthony Rodriguez and said, ‘We have this huge, beautiful building. We don’t want it torn down. We don’t want that space just vacant. Can you help us out?’ He developed it into housing for seniors.”

Rodriguez, founder and chairman at Congregate Management Services, has gained a reputation throughout the region for his ability to transform vacant commercial and industrial properties into beautiful multifamily housing. His gift is helping small cities and towns breathe new life into some of their most challenging neighborhoods. The repurposing projects prevent economy-crippling urban decay.

According to the Pittsburg Community Reinvestment Group (PCRG), a study in nearby Philadelphia reveals that houses within 150 feet of a vacant or abandoned property experienced an average net loss of $7,627 in value. Governments lose significant tax revenue on vacant properties as well, sometimes averaging as much as 83 percent of the owed balance.

There is a strong correlation between vacant properties, an uptick in the cost of municipal services, and an increased crime rate. The PCRG report states that “41 percent of abandoned buildings could be entered without use of force; of these open buildings, 83 percent showed evidence of illegal use by prostitutes, drug dealers, property criminals, and others.” Arson and vandalism are among other crimes that plague neighborhoods with a large inventory of vacant properties.

Lastly, the blight creates a cycle of more blight. Abandoned properties drive down community morale, which results in further disrepair, flight from the neighborhood, and missed opportunities for investment.

The Mount Washington neighborhood could have faced a similar financial and aesthetic burden. It began as a coal-mining neighborhood that soon became home to local steel workers. The city has yet to reinvented itself since the collapse of the steel industry more than 30 years ago; without the help of new businesses and residents, nearly 13 percent of the Pittsburgh’s housing remains vacant. Adding one more neighborhood to Pittsburg’s already delicate economic situation could delay the city’s recovery even further.

By repurposing and renovating the former South Hills High School in Mount Washington, a.m. Rodriguez Associates and Congregate Management Services were able to fill two vital needs for the community:

First, companies were able to provide quality housing for an expanding senior population. South Hills is an LIHTC property that allows seniors to abide on the premises with significantly lower rents than market rate properties. Second,  companies were able to keep a beautiful property from falling into ruins–and dragging part of the neighborhood down with it.

Rodriguez recently embarked upon a market rate project in the same neighborhood. This time, the local middle school is being transformed into the Lofts at Mount Washington (pictured at left). The property has grown popular with a different demographic and offers a new set of benefits.

The breathtaking location has attracted many young professionals to the area. In fact, many of the city’s most iconic images are taken from Mount Washington because of its uninterrupted view of the Pittsburg skyline.

“Young people and professionals are moving in and they can see their office buildings right from the terrace there. They just have to go down the Monongahela Incline, cross the river, and they have a 10-minute commute to downtown Pittsburg. It’s perfect,” says Zaegel.

Mount Washington is two miles from downtown Pittsburg and the hip Station Square. The revitalization of Mount Washington properties brings with it a level of economic success that can bubble across the river and spill into the core. The revitalized neighborhood attracts talent to the area that will boost local businesses with their skills and financial resources.

Congregate Management Services and a.m. Rodriguez Associates are prime examples of how America’s creative visionaries—of any size—can help to repurpose America’s vacant buildings and revitalize neighborhoods.