Reviving Abandoned Schools into Modern Apartments
In 2019, Jesse Wig, Adam Colucci, and Dan Spanovich took on a unique project: they bought an abandoned high school in Homestead, Pennsylvania for $100,000 and converted it into a 31-unit apartment building. The empty Bowtie High School was given new life as an apartment complex.
Reviving An Old Building
The transformation of the abandoned high school was just the beginning for the trio. During the renovation of Bowtie High, the school across the street went up for sale. The partners saw the opportunity and bought the Schwab School in October 2020 for $90,000, launching a second venture.
Despite Both Schools Being Abandoned, the Trio Bought and Renovated Them
The Schwab School had been left abandoned for decades before the three partners purchased the property. After the trio took on the project, it took them 18 months to complete the renovation. The building, originally a manual training school named after Charles M. Schwab, an American steel magnate, was in a deplorable condition, with trees growing on the first floor and leaks throughout the building. However, the partners were determined to take on the challenge and convert it into a residential building.
Challenges Faced During Renovation
The renovation of the Schwab building posed many challenges for the partners. They had to change all the windows and convert the top floor of the building into eight two-story apartments. Although they initially began the project with a budget of $3.2 million, they ended up spending about $4.5 million, which includes a $3.25 million mortgage and $1.25 million of their own money. Despite this, the partners were able to earn $5,000 back by selling an old pickup truck they found in the basement of the building.
Reviving the Old Buildings into Profitable Spaces
Spanovich mentions that they wanted to take advantage of any state and federal tax credits available to them, as they were previously successful in converting a building into profitable spaces. The converted Schwab School now consists of 33 apartment units, which have been well received by the community.
Community Acceptance and Future Plans
As leasing started in the spring, the building is at 85% occupancy and turning a profit. The partners are excited to see the positive reception of their project and mention that the Bowtie High and the Schwab School are sister buildings. Tenants of these buildings can take advantage of amenities in both spaces, which include a double-decker garage, a rooftop deck, a basketball court, and a gym.
With their second project now complete, Spanovich mentions there are currently no plans for the trio to take on another one. Although their future is uncertain, the trio is open to taking on new challenges in the future, as they consider other projects or ventures in different parts of the state. Spanovich says, “The best part about these is bringing these old buildings back to life.”
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