Description of Project
Built in 1892 as a tobacco leaf plant in downtown Mount Airy, Roberts Leaf Plant was converted to a sock manufacturing facility by Renfro Hosiery in the early 1900’s. The building became vacant in the 1990’s and was donated to a local non-profit museum. Purchased by two local businessmen after sitting vacant for years, renovation began in 2002. The developers cleaned out the interior, demolished insignificant “add-on” buildings, and proceeded to renovate the remaining 100,000 square feet of buildings into high end owner occupied condominiums. Thirty seven units now exist with a tax value in excess of six million dollars.
Listing on the National Register of Historic Places made tax credits available for the project. While tax credits are often used as an equity tool requiring that the property be held and rented for at least 5 years, the developers of Renfro chose to apply the state and federal credits in a pass-through structure that allowed the condominium buyers to benefit from the tax credits. In addition to the marketing benefit of available tax credits, the pass-through structure created a property that was owner occupied rather than renter occupied. Possibly the first project in North Carolina to use this pass-through structure the Renfro development experienced a preconstruction sell out of the entire project within 120 days.
The Mount Airy planning board and fire department were very helpful with rezoning needed to allow the project to move forward. The biggest building code challenge was one of fire separation of the individual units.
Description of Surrounding area |
Problems and Resolutions |
The building is located in the downtown area, adjacent to a public housing project and other vacant industrial properties and renovated commercial offices
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Compliance with state building codes concerning fire separation were the biggest challenge. State and county building code officials were very helpful and co-operative. City planning board and fire department was very helpful in rezoning property for residential use.
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Architects/Builders/Owner |
Cost |
Architect : Stuart McCormick of Lambert Architecture
Builder: Lee Mills Construction
Owner: Gene Rees, Lee and Judy Mills
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Total renovation cost -
$5 to 6 million
Per Square foot cost- construction $85, Demolition $3
Cost estimates for new construction for same use - $ 20 million
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Renovation Success |
Source of Funding |
This is possibly the first project in North Carolina in which the state and federal tax credits were passed through the developer to the end buyers. This “pass through” allowed the project to be owner occupied (as opposed to rental) and for each condominium buyer to receive the benefit of the state preservation credits. This incentive, coupled with high-end renovation resulted in a preconstruction sell out of the entire project within 120 days. The downtown now has 37 higher income families living in the downtown, shopping, eating, and using the downtown services.
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State - $2 million dollars - "passed through" to end buyers
Private - 100%
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Use |
Community Benefits |
The building began as a tobacco leaf plant and was converted to a sock manufacturing plant in the early 1900's. The building has been converted to 37 high-end, owner occupied condominiums.
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The downtown is nearly fully occupied with approximately 80 retail stores, 20-30 commercial offices and professionals, and an active tourist trade, all in the face of manufacturing job losses in the community. This project has encouraged the renovation of neighboring streets and buildings.
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Description of Property |
Awards |
100,000 square foot masonry structure
Date of Construction - 1892 original building, addition 1956
Local, state, national designation - Listed in National Register of Historic Places
Date of renovation - 2002
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Caraway Award of Merit
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Description of Outcome |
Status - Renovation completed, 100% occupied
Provided proof that downtown housing can work in a smaller community and in renovated properties. Owner occupied condominiums provide maximum downtown stabilization. Tax value of the property presently exceeds $6 million dollars and the resale prices of the condominiums have increased nearly 40%.
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Pictures
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"The combination of a well thought out project, commitment to owner occupied housing, and creative use of state and federal tax credits, will result in the maximum benefit for a downtown area and the community at large. The resell prices at Renfro Lofts have increased nearly 40% since construction, a testament to the concept of downtown housing in smaller communities."
Gene Rees, Developer
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