The future of these landmarks is up to developers stubborn enough to unlock their potential.
New modern, luxury urban apartment buildings sometimes can have a cookie-cutter feel (at least the ones that aren’t soaring to ever-greater heights). That’s why multifamily developers continue to tackle the costs and challenges of revitalizing historic structures. Such projects can be more expensive and trickier to bring to the market, but the result is often a unique product that can generate outsized returns.
“The renters in some of these iconic buildings will pay a premium,” says Jake Reiter, president of Verde Capital, a real estate private equity firm based in Philadelphia.
However, renovating a historic landmark is often expensive and difficult—and investors do not necessarily pay more for historic buildings than new construction. A designation as a historic landmark can protect buildings that need expensive repairs from the wrecking ball. That leaves the future of these landmarks up to developers stubborn enough to unlock their potential.
