Nothing hurts a landlord’s pocketbook or pride like being the victim of theft or vandalism. Prior to PEX plumbing the main security issue facing landlords and homeowners in St. Louis and around the country is copper theft, but there are many other temping targets at any property. One particularly expensive and “easy to steal” component are AC condensers.

With thousands of dollars of materials and labor tied up in every condenser, the impact of their theft can be tremendous. Especially when they are stolen during the middle of the summer when high temperatures make living without AC more than just an inconvenience.  Thankfully, there are two very simple ways to protect yourself. One is to put your condensers on the roof of the property. What thieves can’t easily reach, they are unlikely to steal. Unfortunately this method is not very cost effective if you have an existing HVAC system and takes forethought and more expensive installation.

Another tactic, which is more adaptable, is to enclose your condensers in a cast-iron cage to deter theft. Not the most beautiful method of protection, but effective nonetheless. There is no 100% surefire way to stop a determine thief, but the more difficult it is to target you condensers, the less likely you are to be victimized. If you employ this added security, as well as traditional security methods such as property security lighting, you should be able to rest more easily.

If you are interested in installing one of these cages at your property, it will set you back about $250 for each condenser (installed). I’ve heard good things about Superior Security Iron (314-382-3081), but just about any iron shop or HVAC contractor should be able to point you in the right direction. As with anything, you will likely find bulk discounts if you shop around. Might be a worthy investment for a little peace of mind.

Whether you are talking about your own home or a rental property, nothing is quite so fun as replacing light bulbs. No matter how quickly and easily the change can be done, it’s amazing how long we all tend to put off such menial tasks. One of the best ways to cut down on this hassle is by using compact fluorescent (CFL) light bulbs instead of the traditional incandescent.

The average CFL bulb has a lifespan of around 10,000 hours. Compared to the average incandescent bulb, which has a lifespan of 1,500 hours,  you can expect over 6 times the amount of usable time. That is a lot of bulb switches and time saved. Yes, CFL bulbs are more expensive, but the costs keep coming down and are now very affordable. Consider the amount of time saved not having to change bulbs multiple times a year, and the costs are well worth it.

The benefits are especially useful in areas with tall ceilings, which require lugging  a ladder around the house. For landlords, CFL bulbs on all exterior, basement and other communal areas is also a good idea. Less lighting outages mean less time at the property and also less security risks from dark areas.  So if you have already,  the next time you buy light bulbs, grab a few CFLs. They are well worth the extra money.

If you’ve ever been curious about where and when crimes have been taking place in the City of St. Louis, there is a great tool courtesy of CrimeReports.com and the St. Louis Metropolitan Police Department. This free service allows you to map crimes by type, date and area.

Taking a quite look at recent homicides and assaults in the map, it is obvious that there are some pretty significant trends.  No neighborhood is without it’s occasional issue, but the low number of recent incidents in near southside neighborhoods like Shaw, Southwest Garden, Benton Park, Soulard, Fox Park, Tower Grove East and Tower Grove South (north of Utah at least) is encouraging.  On the other hand, the number of incidents in Dutchtown, Gravois Park, and the southeast tip of Tower Grove South, at the intersection of Grand and Gravois, continues to be a concern.

The current map setup goes back only to the last six months, but it is still informative. I have found that the site tends to bog down quite a bit when you go back too far and cover too large an area. I would try to keep it simple, for now at least. Version 2.0 of the site is set to be coming out soon so hopefully there will be improvements. In the meantime, it’s still interesting. But don’t take my word for it; check out the map for yourself.

CrimeReports.com

Wired Magazine had an interesting article last month about the bureaucratic nightmare of getting waterless urinals into buildings around the country. Seems like the debate comes down more to plumbers losing business and janitors not wanting to clean them than if they work properly. Its an interesting read for both the technology and the familiar issues of special interests getting in the way of common sense.

Pissing Match: Is the World Ready for the Waterless Urinal?

I don’t normally post a lot of news on restaurants, but when word got out that Pappy’s Smokehouse would be spinning off a second location in Soulard, I was just so happy I had to share. If you are unfamiliar, Pappy’s original location is 3106 Olive Street in Midtown St. Louis. It is some of the best barbecue in town, and by the long lines seen daily at the restaurant, I am not alone in that feeling.

This spin off location, at 1629 S 9th St in the former location of Fat Toney’s, will likely not be called Pappy’s, but will be run by the same people. Located just behind the Soulard Farmer’s Market, they should be open for business by the end of summer. Prepare your taste-buds.

Via STLToday.com

The Chouteau Crossing project at the NE corner of Chouteau and South Jefferson is getting pretty far along in the demo process.  The long-neglected warehouse, located on the southern border of Downtown, just north of Lafayette Square, broke ground in April and should be seeing new construction soon. Clayton-based Green Street Properties LLC is handling the project, which will see reuse of the former warehouse on the site as a $22 million green facility. Here are a few details from their site:

Chouteau Crossing is a $22 million redevelopment of a former industrial building at the northeast corner of Jefferson and Chouteau. Dynalabs will occupy 23,696 square feet of the 33,445 square foot Building #1 and Sheet Metal Workers Local 36 will occupy the full 96,023 square feet of Building #2. Dynalabs space is LEED Registered, tracking for Certified while the Sheet Metal Workers Local 36 building is LEED Registered, tracking for Platinum.

A few of the key features of the Local 36 building will include the following:

• Low flow urinals, dual flush toilets, faucet sensors
• Water efficient landscaping (No potable water use)
• Roof rain water collection/irrigation cistern system
• Stormwater quantity control (green roof & Roof rain water collection/irrigation cistern system)
• Stormwater quality control (parking pavers)
• Light colored paving material (> or = .29 SRI, more than 50% site hardscape)
• Light colored metal roofing (> or = .29 SRI) and green roof
• Cutoff light fixtures to minimize light pollution
• 30% Reduction energy (Whole building energy simulation per ASHRAE/IESNA Standard 90.1-2004)
• On-site renewable energy (Solar voltaic panels, wind turbines, and geo thermal system, solar domestic hot water systems)

Most people don’t even realize that the section of property between Interstate-64 and Chouteau is part of Downtown, but it is nice to see the area receive some significant attention. Other than pipe-dream projects like Chouteau’s Lake, this is the first significant project even discussed for the area in some time. For more information, check out Green Street Properties or the recent Post Dispatch article on the topic. You can also get a glimpse of projects progress in photo gallery below.

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The long planned streetscape project on Cherokee Street, between Jefferson and Nebraska, is finally underway in South St. Louis. It  began in  jarring fashion to those unprepared. All the trees were cut down. There was a hodgepodge of species, and many of the trees had not been well maintained, but it sure makes the street look different. At the very least, it helps to highlight the quality of the remaining building stock.

As for the exact improvements coming to Cherokee along the borders of the Benton Park West and Gravois Park neighborhoods, improvements will include:

New pedestrian lighting, new trees, ADA compliant curb cuts at all intersections, and removal/replacement of the brick pavers between the sidewalk and the street with concrete.

The sidewalks will not be replaced, but they are really not in too bad of shape. The main thing this project will add is a little more consistency along this Cherokee Street business district. For a more detailed look at the lighting and the specifics of the project, check out Cherokee Street News. Pictures of the now tree-free Cherokee Street can be seen below. Expect updates as progress continues.

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One of the biggest maintenance issues landlords and homeowners face at their properties is with their heating and cooling systems. With the extreme heat of St. Louis summers and extreme cold of St. Louis winters, our environment can certainly put a strain on these systems. Annual maintenance by your HVAC technician is always a good idea, but there is one simple thing you can, and should, be doing ever month: cleaning the filter in your furnace.

This maintenance is so quick and simple that there is no reason not to do it every month. But for some reason, it seems like many property owners can’t find five minutes in their schedule to take care of this each month. It is easy to fall into the trap of simply being reactionary to maintenance issues  and only pay attention to your HVAC system when it is giving you troubles, but changing filters is more than just a ploy by the air filter lobby to sell more units. Consider your clothes dryer. If you neglect to clean out the lint collector you can very quickly notice a drop in efficiency. Obviously, lint from the dryer collects faster than with your furnace, but you get the idea.

In general, you should check out the filter in all your furnaces once a month. Depending on the season and other factors, the amount of dust collected in any given month will vary. In general, the dead of winter and summer will be the worst times. Sometimes you can get away with simply vacuuming the dust from the existing filter, other times you need to replace it. Either way, you should check it out  each month to be sure.

If you are a landlord, cleaning the furnace filters at your properties has a beneficial side-effect as well. It gives you a good excuse to check up on your tenants and how they are treating your unit. Keeping up on routine maintenance will make good tenants feel better knowing that you actually care about running a good building, as well as let you spot trouble tenants. Get those vacuums ready.

For those that thought new infill construction in the City of St. Louis was currently dead, Blue Brick Construction has an answer for you: 4268 Hartford. They are currently in the middle of construction at this LEED Platinum (certification level goal) 4 bedroom, 2.5 bathroom house in the Tower Grove South neighborhood. For reference, it is just a few houses to the east of Morganford. The project is now under roof and upon my visit yesterday, they were at the point of putting in windows. The property is being built for a private owner who will be occupying the home themselves upon completion in the coming months.

For more information, pictures, and plans check out Blue Brick’s project website.

One of the most awkward situations a landlord can face is informing a tenant that they will not be renewing their lease. Whether the tenant has been in the apartment for one year or ten, it can be a delicate matter. Proper management of the situation will help to avoid lack of final rental payment and property damage. Following these tips will help to make the situation easier:

• Send the tenant a letter explaining that their lease expires soon. Sending out such a letter 45 to 60 days prior to lease expiration and following up with a phone call will generally lead to the most satisfying results. Remember that most leases specifically require notice at least 30 days prior to the next rental due date.

• If the tenant was a good one, offer to provide them with a letter of reference for procuring a new residence. Many tenants feel a bit insulted by not being allowed to renew their lease. This action can help to soften the blow.

• If the tenant was a bad one, make sure you avoid threats and insults during the process. Even if they are deserving. If you leave them with a hope that they might get some or all of their security deposit back, they will be more likely to play along. If you start the process the wrong way, they might simply write the money off and do who knows what to the apartment. Proper handling can lessen the chances that the tenant will intentionally do damage to the unit or not pay their last month’s rent.

• If the tenant directly asks why they are not being allowed to renew, one response that is generally well accepted is to say that the apartment needs improvement, which can only be addressed if it is vacated. Most people will understand that.

• Be sure to keep in touch with the vacating tenant after giving notice. If you tell them to move out in 45 days and never bother to check up on their move-out progress, you might run into an unpleasant surprise at the end of the lease term. People are often lazy and forgetful, so make do your part to make sure they stay on course.

• If the tenant directly asks why they are not being allowed to renew, one response that is generally well accepted is to say that the apartment needs improvement, which can only be addressed if it is vacated. Most people will understand that.

• As a preventative measure in the future, make sure your lease contains detailed language on the move-out process and what is expected of both you and the tenant. Performing a walkthrough inspection with the tenant before and after occupancy is also a good proactive measure. If everything is spelled out ahead of time, there will typically be less surprises and less room for argument.

If you follow these tips, your chances of a smooth transition will be much higher. Many of these tips also would apply to situations where the tenant is the one terminating lease renewal. No matter who starts the process, just make sure you do all you can to make the process smooth for everyone possible. That way you can move on to the next tenant as soon as possible, which will maximize your profits. And isn’t that was real estate investing is all about?

The infamous 4-family at 3155 Gustine will soon be an eyesore no more. This 4,394 square foot property in the Tower Grove South Neighborhood of St. Louis, located just across form Gustine Market,  has been vacant for years now and is on the demo-list in the City of St. Louis. The property has been bought and sold (and over-leveraged) so times in recent years, that it began to look like nothing good was ever going to happen to the place. Meanwhile, the property was being stripped of all it’s copper and useful materials. This trend continued to the point that neighbors began calling for the building to be torn down. Thankfully they did not get their wish.

Yesterday,  one of my clients closed on this property. Under this new ownership, by the end of the summer, construction will be fully underway on a gut rehab of the building. The layouts are already pretty good and with a little tweaking will feature a spacious two-bedroom, one-bath layout for each of the four apartments. This is one of the very last truly derelict properties in the Tower Grove South north of Utah (4200 Arsenal was bad too, but it is already under construction). With fewer and fewer properties in the area needing work, expect development to continue spreading southward in the neighborhood and eastward into the Tower Grove East Neighborhood.

For a better idea of the current state o 3155 Gustine, check out these pics.

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One of the many victims of a slumping housing market, the historic mixed-use property at 3300 Lemp in Benton Park has traded hands numerous times in recent years until it was finally foreclosed on in 2009. Luckily, someone with good intentions and deep enough pockets to act on those intentions was able to get a hold of it. Construction is now fully underway at the site, which is  now owned by Anchor Development LLC.

Located at the southeast corner of Lemp and Utah, this 6,213 square foot property will retain the original storefront for commercial purposes upon completion. The native layout of the property features four residential units in addition to the commercial space, but at this point I have been unable to verify if the completed project will keep the same orientation intact. Other interior details remain sketchy, but since the property was already gutted down to the studs before the project started, it is clear that all the systems and cosmetics will be replaced.

I’ll share more details as the project progresses, but regardless of exactly what is done with the place, there is no question that the completed building will be a key piece in the domino-effect of rehabs being seen going south of Arsenal in the Benton Park Neighborhood.

In a last minute move by Congress, the $8,000 Homebuyer Tax Credit program has been extended yet again. This extension will drag the program out until September 30, 2010. There is a catch though. It only applies to people who had buildings under contract on April 30, 2010.

Originally set to expire June 30, 2010, this extension is for those people that have not yet been able to close on contracts after two months. Other than uncompleted new construction or properties contingent upon the sale of another property, this change is unlikely to affect many people.

Own real estate in the City of St. Louis? If you do, you probably hate paying that annoying 1% earning tax on your income too. But at least that helps to cover trash collection fees for you right? Sadly, not anymore. The St. Louis Board of Alderman just passed a new trash/recycling bill (22 to 7 vote) that will go into affect immediately.

This bill includes language which will return trash pickups to two times a week and to add single-stream recycling bins in alleys. Despite the fact the the recycling bins will just end up getting filled with trash like so many yard waste containers already do, these changes are welcome. What is not welcome is the $11 a month ($132 a year) fee that will be due to pay for this change. And whats worse, this fee is going to be charged on a per unit basis. That means, if you own a 4-family property, you now have to pay an additional annual fee of $528. That is going to be a tough pill to swallow in terms of cash flow.

This bill is going to hurt a lot of owner-occupants and investors. Especially those already on a tight budget. Trash pickup has never been “free” in the City as many claim, it has just been paid for out of other tax sources. Now they are  taking even more money while in the midst of a recession. Expect to see this fee starting with your next water bill. It would be nice to say that this is only temporary, but when was the last time any level of government gave up tax revenue once they have it? Tighten your belts.

Come July 1st, this long vacant apartment complex in the Shaw Neighborhood of South St. Louis will be abuzz with construction activity. Developer T & E Development, LLC closed on the building just last week with plans to do a historic gut rehab of this property at 3800 Shenandoah. Currently, the layout features 24 apartments. Due to the small size of some of these, the layout will be adjusted to 18 units in the completed product. Federal and Missouri State historic tax credits will be used for the project.

The property had been gutted for conversion to condos a few years ago, but with the shift in climate for the housing market, the project was put on hiatus. With their acquisition of the property, T & E Development plans on scaling back some of the more elaborate upgrades in the original plans, but the apartments will be new from top to bottom. The final project will feature six smaller 1 bed, 1 bath units; six oversized 1 bed, 1 bath units; and six large 2 bed, 2 bath units. The oversized lot will also allow for generous parking at the site for tenants.

This project is really going to do a lot of good for this section of Shaw. It is the single largest idle property within many blocks and it’s revival could have a lot of spillover affect. Construction is scheduled to be complete in March 2011. Matt Kastner of Threshold Investment Properties will be handling leasing of the units upon completion. Expect plenty of updates on this project in the coming months.

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An often overlooked side of owning investment property, is how to manage the property in the most efficient way. Simply throwing in any tenant and letting the property sit idle could eventually lead to major troubles. Although, some things take time to employ, in the long run they can make your life a lot easier. The following are a few tips to help your investment run a smoothly as possible:

1. Screen tenants – Don’t rent to anyone before checking their credit history, references, background and previous landlords. Haphazard screening and tenant selection too often results in problems — a tenant who pays the rent late or not at all, trashes your place, or lets undesirable friends move in can cause you some major headaches.
2. Get it in writing - Get all the important terms of the tenancy in writing. Beginning with the rental application and lease or rental agreement, be sure to document important facts of your relationship with your tenants — including when and how you handle tenant complaints and repair problems, notice you must give to enter a tenant’s apartment, and the like. Written leases enhance resale value, allow and help to make the property run more smoothly. Make sure tenants are aware of special clauses such as getting access to the unit for releasing prior to vacancy.
3. Handle deposits properly – Establish a system of setting, collecting, holding, and returning security deposits. Inspect and document the condition of the rental unit before the tenant moves in, to avoid disputes over security deposits when the tenant moves out. Documenting the condition and taking pictures of each room and existing damage in the unit ensures legal justification for withholding the security deposit when the tenant vacates.
4. Make repairs - Stay on top of maintenance and repair needs and make repairs when requested. If the property is not kept in good repair, you’ll alienate good tenants, and tenants may gain the right to withhold rent, repair the problem and deduct the cost from the rent, sue for injuries caused by defective conditions, and/or move out without needing to give notice.

This 2,944 square foot 4-family at 1115 Tower Grove has been boarded up for almost ten years. As you can see, it is a bit of an eyesore. Considering it’s prominent location just southeast of the intersection of Manchester Avenue and Tower Grove Avenues in the Grove Neighborhood (Forest Park Southeast) of St. Louis, this neglect has been pretty high-profile. Thankfully, the property is now undergoing full restoration.

The developer, Alley Grove LLC, is converting the current cramped 4-family layout to a more spacious 2-family orientation, with 2 bed and 1.5 bath in each unit. Guy Slay of Alley Grove LLC was recently awarded a Landmarks Association “2010 Most Enhanced Award” for the work he did restoring 4260 Manchester, so one would assume that 1115 Tower Grove is in good hands. Design and general contracting are being handled by Urban Improvement Construction (UIC), who are located nearby at 4301 McRee, at the intersection of McRee and Tower Grove.

Completion date and other details are unknown at this point, but expect updates as work progresses

The gut rehab project we have been following in Marine Villa is now officially complete. For a refresher on this project at 3500 Illinois, check out these stories before and during construction. The final product really did turn out pretty wonderful. With 4 bedrooms, 3 bath and white-boxed loft are on the third floor (including an extra bath), this 4,932 sq ft monster is a sight to behold. And that that they were able to make it all work at a final sales price of $200,000 is all that much more impressive. Looking forward to seeing Tiger Lily Development and Clover Leaf General Contracting’s next project. Check out this pics of the finished product:

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The mixed-use property at 3144 Morganford in the South St. Louis neighborhood of Tower Grove South will soon be getting a bit of a face-lift. Located across the street from 3 Monkeys and two doors down from Local Harvest Grocery, the building  is one of the few commercial buildings along that stretch of Morganford that has yet to see significant rehab.

The new owners of the property will be rehabbing the one-bedroom and two-bedroom apartments upstairs and plan on white-boxing (or build-to-suit in the right circumstance) the commercial area on the first floor. I’ll be sure to post an update when a tenant is found, but if you are looking for between 500 and 1132 square feet of street-level commercial space along Morganford, you might want to take a look for yourself. If you are interested, call (636) 405-7184 and ask for Jeanette.

After nearly a year of work, SPACE Architects has finally completed construction on their new 7500 square-foot facility at 4168 Manchester in the Grove Neighborhood of St. Louis. Acquired for $212,500 and with $700,000 in repairs, including brownfields and federal and state tax credits, this $912,500 project is a significant addition to the Manchester streetscape.

I was recently given a tour of the facility and it really did turn out great. They are still working out some interior details, and having seen their previous office in Maplewood I imagine they will be adding plenty of additional character over time, but the company has already moved into the space. The current product really is impressive.

Probably the most interesting thing about the building is it’s use of geothermal radiant heating and radiant cooling.  Radiant heat really isn’t that unique of a concept, but the technology that propels their radiant cooling is both energy efficient and cutting edge. There is a special humidity control system in place to handle all the condensation that would typically develop on the radiant coils. I took a few pictures of the system, which can be found in the gallery below. It’s really some pretty cool stuff (pun intended).

Hopefully more companies with follow SPACE’s lead and move to this burgeoning commercial sector along Manchester. The whole strip can’t be restaurants and bars. While we all wait for that to happen, you can find out more about SPACE Architects at their website: http://www.space-stl.com.  You can also get a better idea of what SPACE has done with their offices from the pics below.

Getting unwanted tenants out of your apartment units can be one of the most frustrating experiences a landlord can go through. Whether you want to give them the boot to rehab the unit or want them out because they aren’t paying their rent, its not a fun experience. The most common method used to do the job is the eviction. An effective method, for sure, but an expensive one. Legal fees, rent loss and value-of-time costs tend to rack up in a hurry.

The next time you need to move out a tenant, consider an alternative: cash-for-keys. This method, commonly used by banks in foreclosure situations, can be very fast and relatively cheap. The basic premise is that rather than going the route of eviction, you offer a cash settlement to the tenant if they are out of the unit by a specified time. The actual amount of the settlement depends on the situation. At first glance, many landlords scoff at the idea, for many reasons. Such an attitude is, however, rather shortsighted. Consider the following:

• It’s fast – This method can potential get the tenant to move out in a matter days due to the financial incentive. Compare that to the three months a knowledgeable tenant can stretch an eviction out.
• It’s cheap – Offering a tenant $250 to move out is far cheaper than any eviction. Paying a professional to handle the process will run you $300 alone. If you account for lost rent and tenant damage accrued during the eviction process, the choice is obvious. Even if you have to offer more than $250 to get the tenant to move.
• It’s easy – Going through the process of eviction not only takes time and money, its a pain in the butt. Especially if you are representing yourself in the eviction. It’s also easier on the tenant. Many tenants would be willing to cooperate with you and move out, but they don’t have the money to make a down payment or move to a new place.

When you come down to it, there is no reason not to try this method. It’s cheaper, it’s faster and it’s quite simply a better arrangement for both you and your tenants. It doesn’t always work and it isn’t for ever situation, but its usually worth a try.

When it comes to the real estate industry, you can never build to accommodate everyone’s tastes. But it never hurts to try. One issue I have a hard time getting a true grasp on is people’s feelings towards electric and gas appliances and utilities. Stoves, furnaces, water heaters.. that kind of thing. I get calls from people looking for all-electric units from time to time and I just wonder how common this is.

On the pro-gas side, furnaces tend to be cheaper to run. While increases in natural gas costs and improved efficiencies for electric air handlers have narrowed the gap, gas furnaces are still cheaper to run. Gas ranges are also unparalleled for cooking. Unless we are taking about super expensive cook-tops, you never gas a more even and consistent burn than with gas.

On the electric side, depending on your school of thought, an electric air handler is more efficient than most gas furnaces. They tend to be a little more expensive to operate though. The big perk about going all electric in a house is that you don’t have to deal with the gas company. No gas bills, no gas inspection, no possibility of gas leaks… it can be nice.

So what do you think? Are you pro-gas, pro-electric, or do you simply not care? Feel free to elaborate.

The vacant mixed-use property at 4227 Race Course seems to be close to a getting a green-light on being rehabbed. The property is located at the NE corner of  Tower Grove Ave and Race Course, which is just north of Vandeventer, in the Grove (Forest Park Southeast) Neighborhood of St. Louis. The property was recently sold and the new owners are seeking a liquor license for a new restaurant, which would be called Forever Yours Bar & Grill.

Other than cleaning up the overgrown trees on the property, not much has yet been done to the place. But, assuming that the project gets a thumbs up, it will be nice to see this prominent property get the rehab treatment. It sits on the southern border of the neighborhood and would serve as a far better welcome than the current rows of boarded up properties on that end of the neighborhood. A majority of the reinvestment seen in the area in the last few years has been north of Manchester so this one would stand out a bit. Hopefully its the start of a new trend.

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If you frequent the area around Tower Grove Park or Morganford in the Tower Grove South Neighborhood of St. Louis, there is a good chance you have seen this property. With its prominent location at the SW corner of Arsenal and Bent, facing Tower Grove Park, its hard to miss. Especially since it has been boarded up begging to be rehabbed for almost ten years. As the neighborhood has improved, this property became one of the biggest eyesores in an otherwise excellent area. But that’s about to change.

Just this morning, the property finally changed hands. New owner and developer Rainier LLC will be redoing this 4,200 square foot building as four 2-bed, 1 bath apartments. I represented Rainier on this closing and had the chance to see the inside for myself. The state of the interior is worse than the outside. It is totally uninhabitable. The amount of work needed is quite significant, but with a few tweaks in the layout, new systems and a lot of plaster-patch and drywall, the place will really look great. Demo will begin soon, with construction to follow throughout the summer. More details coming when the project gets underway.

For a better idea of what the outside of the property looks like, check out the pics below.

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Looks like a busy week for the 2500 block of South Jefferson.  Word is going around about two new commercial ventures on the block known for housing Trader Bob’s Tattoo Shop and The Way Out Club, among others. These developments are at 2501 and 2533 S Jefferson, which happen to be at the north and south boundaries of  this block in the Fox Park neighborhood of Saint Louis.

The building at 2533 S Jefferson is the long-vacant three-story mix-use structure, which formerly housed the 3-D Apparel store, at the corner of Sidney and Jefferson. A sign went up on the building earlier this week that says “Coming Soon – Internet Cafe and Copy Center.” Nobody I have spoken with at the City or with the Neighborhood seems to know anything about this project, but I saw people cleaning the commercial unit out this week so something is clearly going on. The big question is whether this is place is going to be opening sans food or if it is going to be a legit cafe.

On the northern end of the block, the building at 2501 S Jefferson is slated to be converted into an art gallery and frame shop. Unlike 2533, this building doesn’t really have much of a street presence at this point, so it seems likely that the building will see a fair amount of rehab. The owners are already working with local officials on getting the business up and running so this one seems to be a bit further along.

With these to additions to the the 2500 block of Jefferson, the western side of the block will be nearly fully occupied. And the area could certainly use a bit more foot traffic. If only the lower-level of the Jefferson Underground could find tenant, and someone would do something with the old boarded up Burger King, the block could really be something. One step at a time I guess. Check out the pictures of the buildings below for a refresher on the buildings in question.

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Vacant for years and condemned to be demolished since 2006, this beautiful historic single-family home is about to get another life. Located at 4440 Arco in the Grove (Forest Park Southeast) neighborhood of St. Louis, construction on this 2,200 square foot home has already begun. The project is being developed by Mason Bell and Austin Barzantny of Grove Properties LLC and will be utilizing Missouri Historic Tax Credits.

I actually represented Grove Properties on this transaction, and can tell you first hand that the state of the building was pretty rough when we found it. It actually took almost six months to work around the liens and probate issues that had piled up on the property. Someone else had started to rehab the property years ago, but died while the project was in its early stages. The previous owner’s redesign of the structure was ambitious to say the least, which made the project even more difficult. To top it off there were  structural concerns, a bamboo forest in the back yard, and major hole in the roof. As I said, the situation was a mess. After nearly six months of trying to close the deal, it is a minor miracle that we managed to pull it all together.

Despite all that, as you can see from the above picture, the facade of the building is truly amazing. Interior demo is now underway, so it looks like the building will be stabilized in short order. Construction is scheduled to be complete in September of 2010 with 3 beds and 2.5 bath in the finished product, along with 2-car garage in the rear. It’s really going to be a beautiful place. Tentative pricing is set at $249,900. For more information, contact Grove Properties LLC at 314-504-5499.

If you are a contractor or own rental property that was built before 1978, your job just got a lot more expensive. As of April 22, 2010, new Environment Protection Agency (EPA) rules require any contractor doing work such as cutting, sanding or demolition, which will disturb lead paint, must now be certified by the EPA to do so. This requirement includes landlords doing their own work, but exempts people working on their own home.

To gain this certification you will have to take an 8-hour course on lead abatement and pay a certification fee. This fee varies, depending on your exact situation, but for most people it will be $550. You will also have to be re-certified every five years by taking a 4-hour refresher course and pay the fee again. To make matters worse, you will also be legally required to use protective gear and clothing while doing any work. If you are a professional contracting firm you must also make sure your employees are certified as well.

There is no doubt that many contractors and property owners are going to simply ignore this new law (it hasn’t been publicized much), but it seems that the feds have thought ahead about that. They have instituted a fine system which can charge violators up to $37,500 a day for not following the rules. Most small-time operators would probably not see such fines, but the EPA is certainly taking a punitive approach to this new rule.

TO put it mildly, these new rules will place additional burdens on an already strained industry. As such, the full enforcement of these rules will probably take some time to roll out. Regardless, if you do this kind of work, it would probably be best to start figuring out how to get certified. For more on the new rule check out the official EPA webpage on lead-safe certified firms.

And the $8,000 first-time homebuyer credit goes off into the sunset. With April 30th come and gone, if you don’t have a property under contract, you’re out of luck on receiving the credit.  Technically, the credit continues until June 30th, but properties need to be under contract NOW. Many in the real estate industry seem to be despairing over the expiration, but for investors and homebuyers alike, this is a day to celebrate.

For the investor, it quickly became obvious that market-rate and REO sellers had cut back on their price-drops in recent months as they held out hopes for getting top-dollar on sales. Now, I want to see appreciation as much as the next guy, but the reality is that we are in a buyers market and will continue to be in a buyers market for years to come. Now that the credit is gone, it will be nice to have the market dictate the prices again. No longer will investors or those that didn’t qualify for a tax credit have to compete against the subsidies of those that do. I expect to see some pretty significant price drops in the single-families and duplexes that were not bought up during the tax-credit frenzy. Especially as the inventory starts to increase again over the summer.

For owner-occupants, things don’t look glum either. Although most qualified buyers took the tax credit simply because it was there, most buyers didn’t need it to buy a home. Knowing that you were getting $8,000 from the feds, sellers have been holding back on price drops and aggressive negotiations with the hope that they could get more for their house. Now that there are less people aggressively seeking a new home since one of the big incentives has been removed, I would expect sellers to start getting motivated about unloading properties. Any rehabber that is sitting on a completed project or homeowner that is serious about wanting to move is going to have to come back to reality. You might not be able to get the $8,000 tax-credit anymore, but there is a good chance you can still save $8,000 on the sale price of that house.

Now that the government has its nose out of the real estate market, there are going to be growing pains for sure. But this cloud has a silver lining if you keep at your property search. The market is going to rebound in due time, but in the meanwhile the buying is still going to be good.

Over the past year, the old run-down warehouse at 3100 Gravois in the Benton Park West neighborhood of St. Louis, Missouri has been given new life. Most notably occupied by John Fabick Tractor Co. from 1941 to 1973, the property was stricken with major lead and asbestos problems, and in desperate need of rehab. The overwhelming workload involved with the project must have scared many people off as the property had been vacant since 2004. But when the mold, lead and asbestos remediation company Advanced Environmental Systems Inc. (AES) found the property in 2008, they saw potential.

After purchasing the property in 2008, AES and their developer H&A Restoration and Development were able to secure $440,680 in brownfield tax credits from the Missouri Department of Economic Development to help address the major environmental concerns at the property. Work began in June of 2009 and just wrapped up in April 2010. The total cost of the remediation and historic rehab was $1.2 million. The developers are now seeking LEED Silver Certification and state and federal historic tax credits.

AES has now moved their offices from their former location at 4437 Fyler in the Tower Grove South neighborhood, to the 3100 Gravois building. They currently have 17 employees and are forecasting 7 to 9 new permanent jobs in the near future. They had $4.1 million in revenue in 2009, but hope to grow that to $4.6 million in 2010. The offices and warehouse space will allow them the expand as needed int he future.

The President of AES, Dennis Ruckman, took me on a brief tour of the completed project and work is excellent. They really went out of their way to restore a lot of the historic woodwork, which pictures simply can’t do just. It really is a beautiful project and a welcome addition to the Benton Park West neighborhood. Check out the photos below.

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When it comes to managing properties, its generally best to keep things as simple as possible. One of the most common “emergency” issues many landlords encounter is a tenant locking themselves out of their apartment. Even if you live nearby, having to deal with such problems can be a major nuisance. Thankfully, there is something you can target to help cut back on lockouts: handleset locks on entry doors.

Most properties nowadays have both a handle lock and a deadbolt. In order to lock the deadbolt, a person must use a key to lock it from the outside. If a tenant locks that lock, its safe to say that they didn’t leave their keys on the coffee table. On the other hand, handle locks can be quite tricky. If you lock the handleset from the inside and close the door, the door isn’t opening without the key. Most lockouts happen because of this. Especially if the tenant has kids. To make matters worse, some handleset models will actually rotate from the inside of the door even if the door is locked. These handles make accidental lockouts even easier.

This problem can be removed if you simply don’t install handle locks at your apartments. Tenants can still lose their keys, but this will remove one of the more common causes of lockouts. On a cautionary note, you also need to consider the security issues surrounding the removal of a handle lock. A locked handleset and deadbolt, in tandem, are much more burglar-proof than one lock alone. If you remove your handle lockset, I would recommend using a little higher quality deadbolt and perhaps installing an oversized metal security plate on the inside of the door frame.

Whatever you do, just be concious of the side-effects on property security. But if you mitigate any potential issues, removing those handle locks can be a real time saver.