Homestead, Pennsylvania- From neglected high school to luxury apartments, a trio of investors has successfully transformed the abandoned Schwab School into a 33-unit residential building.
In 2019, Jesse Wig, Adam Colucci, and Dan Spanovich purchased the Bowtie High School for $100,000 and converted it into 31-unit apartments. The success of that project spurred the partners to tackle a second venture: the abandoned Schwab School. They acquired the Schwab School in October 2020 for $90,000.
Spanovich expressed their satisfaction in the project and mentioned that the challenge of converting the building is what drove him and his partners. Commenting on the condition of the building upon purchase, Spanovich described how trees were growing on the first floor and water had leaked from the top floor. Despite the challenges, the group’s budget of $3.2 million expanded to about $4.5 million during the renovation process. The amount included a solo mortgage of $3.25 million and the partners’ $1.25 million contribution.
The renovation involved replacing all the windows and transforming the top floor, which used to be the school’s gym and auditorium, into eight two-story apartments. The trio also managed to recoup some renovation costs by selling an old pickup truck found in the basement of the abandoned building.
In the project, the trio made use of state and federal tax credits to their advantage. If their application for federal tax credits is approved, they could receive around $800,000.
The newly renovated Schwab School, now housing 33 apartments, features a variety of floor plans, including one and two-bedroom units, with rents ranging from $950 to $1,950. Meanwhile, more than a year after opening, the building, which is at 85% occupancy, has started generating profits.
The partnership has expressed that they currently have no plans for a new project. However, they have been diversifying their investments individually in the meantime.
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At present, Jesse Wig and Dan Spanovich have ventured into purchasing former schools in Homestead, and Colucci and Spanovich are considering a former brewery as their next residential space project.
Despite no immediate plans for a new joint venture, the trio shares the passion of bringing abandoned buildings back to life.
Spanovich remarked on the best feeling he experiences when walking into the renovated building and seeing it come alive, despite initial doubts about its feasibility.
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