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Updated
July 8, 2006
Printed in the BusinessReview, June 2006
Link to originalFirst-time 'developer' takes on rehab, rental of South End apartments
by Michael DeMasi
The Business ReviewYears from now, Eric Moses could be regarded as a visionary if his prediction of a renaissance in Albany's hardscrabble South End neighborhood comes true.
If he's wrong, he could end up learning a costly lesson in real estate investment.
Moses, a 33-year-old anesthesia resident at Albany Medical Center Hospital, bought a vacant, fire-damaged apartment house at 142 Morton Ave. for $213,000 last September. He has spent at least that much money renovating the interior into what he calls 13 "luxury petite" apartments that are now hitting the market.
Monthly rents for the tiny studios and one-bedrooms are $700 to $850, which includes utilities, high-speed Internet access and a closed-circuit security system. John Peat, the contractor who did the carpentry, painting and other work for Moses, said the largest unit is a one-bedroom on the third floor that measures just 600 square feet.
"When we went in, the emphasis was to increase the safety," Peat said. "As much security as we could get."
There are nice features, including exposed brick walls, wainscoting, 9- to 10-foot-high ceilings, fireplaces and a laundry in the basement. But the furnishings, such as laminate wood floors and Formica kitchen countertops, don't scream high-end.
Built in 1895, the red-brick building faces Lincoln Park and a city landscape that includes the State Museum, Erastus Corning Tower and spires of the Church of the Immaculate Conception.
It's also a short walk from Lincoln Square, a set of three apartment high-rises owned by the Albany Municipal Housing Authority. Morton Avenue has many two-family houses, some of which are well-maintained and others that look shabby. Some buildings are boarded up. Street crime and drug-trafficking remain a problem.
"Some people would say I was totally delusional at the time," said Moses, who bought the property with his brother, a silent partner who lives in Colorado.
The brothers got a $380,000 loan from the Community Preservation Corp. to help pay for the purchase and renovations, said Chris Betts, assistant vice president of the CPC. The nonprofit assists people who are buying and fixing up properties in areas where market-rate borrowing may be tough to get.
"We would like to see more of this type of investment go on," Betts said of the South End.
Moses is convinced the apartments will be desirable to state lawmakers, legislative staff and college students who don't need a lot of space. He said others are investing in properties in the neighborhood, and he's encouraged by the talk of possibly demolishing the public housing high-rises.
"I think the energy is changing on the street," he said.
mdemasi@bizjournals.com | 518-640-6814
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