Revamping Abandoned Schools into Apartments
In 2019, Jesse Wig, Adam Colucci, and Dan Spanovich made a bold decision to invest in a new real estate project. They bought an abandoned high school, Bowtie High, in Homestead, Pennsylvania, for $100,000 and converted the property into a 31-unit apartment building.
A Second Venture
The partners took on a second venture when they bought the Schwab School for $90,000 in October 2020. Spanovich expressed his enjoyment in revitalizing old buildings. According to him, the challenge of transforming these abandoned properties into thriving apartment buildings is what drives him and his partners.
History of the Schwab School
The Schwab School was originally a manual training school named after Charles M. Schwab, a prominent American steel magnate from Pennsylvania. After closing its doors in 1980, the building was left abandoned, with on-and-off occupancy over the years.
A Revitalization Journey
Renovation of the Schwab building began in April 2022, and it took the trio 18 months to complete the project. Spanovich described the school’s deplorable condition upon their initial visit, reporting that trees were growing inside the building and water had leaked from the top floor.
Investment and Renovation Costs
Wig, Colucci, and Spanovich had a budget of $3.2 million for the renovation but ended up spending about $4.5 million. To their surprise, they found an old pickup truck in the basement and sold it for $5,000. They also endeavored to take advantage of state and federal tax credits to help finance their project.
Transformation into Apartments
The renovation included the transformation of the school’s gym and auditorium into eight two-story apartments. The completed project offers a total of 33 apartments, with rent ranging from $950 to $1,950.
Success and Growth
After a successful leasing season, the building is now 85% occupied and is turning a profit. Additionally, the space offers several amenities, including a rooftop deck, a double-decker garage, a basketball court, and a gym. Future plans for new projects are still uncertain, but the partners are considering repurposing other historic buildings for residential use.
A Final Note
The partners are looking forward to reviving more old buildings in the future. Spanovich expressed satisfaction in bringing these previously abandoned properties back to life. According to him, the feeling of walking into a transformed building and seeing life in a structure that was once declared impossible to revitalize is an amazing experience that he wouldn’t trade for the world.
