Stopping the flow of stolen copper from St. Louis real estate properties

*NOTE - This article was originally written in February of 2007 for the newsletter.

There is a plague afflicting the St. Louis area. This onslaught is indiscriminate in choosing victims. Businesses, residences, apartments, even churches are not safe from the salivating jaws of this beast. Keep on the lookout for the copper thief.

Everyone seems to agree that the surge in copper prices from $.50 a pound to over $3.00 has caused a major surge in copper theft. Whether by stealth, trickery or reckless abandon, copper thieves have been ransacking our area. Copper pipes, electrical wiring and old gutters are especially vulnerable targets.

Many residents blame the continual climb in theft on an inept police force or dismissive neighbors. But there is no way you can pin this on them. It would be impossible to have eyes on every potential theft target at all times. There isn’t enough manpower. Even if there was, in a city with so many rehabs going on at any given time, thieves posing as contractors can too easily gain hassle-free access to vulnerable areas.

Preventative measures are not the key to solving this issue. If we really want to stop the thieves, we need to cut off their buyers: scrap yards. These businesses serve a necessary and functional purpose, but more has to be done to prevent this theft. Perhaps scrap buyers should only pay sellers by check and keep drivers license records of all sellers? Perhaps scrap yards who knowingly buy from thieves should face stiffer fines. Regardless of the path to be taken, there must be action.

Protect yourself. Take a stand. Call your local alderman (search for your alderman) and scrap yards today and demand that they fix this problem. We need to be fostering a hospitable environment for developers and residents not robbing them blind.

Notable scrap yards in close proximity:

- Ace Scrap Metals, 5900 Manchester, St. Louis
- Top Metal Buyers, 808 Walnut, East St. Louis
- Cash’s Scrap Metal, 300 E. Nagel, St. Louis

*Check out my previous blog entry, “Stopping Copper Thieves: What can you do?” for tips on protecting yourself.

Condo development in the St. Louis Commercial District of Grand South Grand

*NOTE - This article was originally written in February of 2007 for the newsletter.

Chicago-based developer Grace Associates LLC has big plans for the old Commerce Bank site and adjacent parking lot at 3134-42 S. Grand Boulevard. The St. Louis Board of Aldermen recently considered legislation that would allow the developer to construct 50 condos on the site. The former bank location has been vacant since Commerce built a new facility next door. Grace Associates already has five parcels in the area under contract.

Initial plans feature thirty-six units oriented towards Hartford Street, with the remaining fourteen units facing Juniata. Early concepts feature a building three stories in height with 80 below grade parking spots for development residents. Plans also call for an additional 90 space, street-level parking lot for the general public.

*UPDATE - This one is still in limbo. I found some interesting references to the project on the 15thwardSTL.org blog.

Such new parking could help to provide a major boost to the Grand South Grand area, which often faces parking shortages. Area business owners have long cited the lack of parking as one of the major disincentives visiting the district.

This project addresses that issue, and Alderman Stephen Conway says that all the stakeholders, including members from the local business district and the Tower Grove East residents association, are involved in the process.

The proposed project could become the second major condo project along this section of South Grand, in the last year. The nearly complete Compton Gate Condominiums project is just a few blocks north. These projects serve as a complement to the already successful retail sector in the area. More information on this project and potential impact are expected soon.

Fluorescent light bulbs can save a lot of hassles

*NOTE - This article was originally written in December of 2006 for the newsletter.

Nothing is quite as irritating to a landlord as burnt out light bulbs. Whether replacing them is officially the responsibility of the tenant or the landlord, you will eventually get stuck with replacing that light bulb at some point.

Thankfully, the fluorescent light bulb can held to ease the burden. The price for these bulbs has gradually dropped through the years, making them much more affordable. Not only that, but considering that the bulbs lifespan can last for years, the small difference in price can be well worth it.

Even if you don’t replace all the bulbs throughout your units with fluorescents, it is a great timesaver for exterior and basement lights. Do yourself a favor and go buy a few packs.

Fraudulant rent collectors

*NOTE - This article was originally written in December of 2006 for the newsletter.

Getting your tenants to pay their rent can be a tough enterprise. Especially when you aren’t the only person trying to collect rent at the building. As crazy as it sounds, this has actually been happening in the St. Louis rental market.

Apparently, a man has been coming to apartment units in the late evening at the very beginning of the month claiming to have just purchased the property. At this point he asks for the month’s rental payment. Most tenants seem to realize the oddity of the situation, but some have been taken through the scam.

Whether urban myth or fact, to protect yourself and your tenants, it would be prudent to contact all parties involved with your properties and warn them of this scam. Explain to your tenants both verbally and in writing, that rental payments are to made in the same fashion each month unless you, the landlord, personally notify them of a change.

This small investment of time could save you from major headaches down the road.

Old North St. Louis: What’s old is new again with this real estate development project

*NOTE - This article was originally written in December of 2006 for the newsletter.

When most people hear the words, “North St. Louis”, certain images pop into their heads. Most of them, none too flattering. Unfortunately, this negative perception is not wholly unfounded. With high rates of crime and poverty, and a decaying infrastructure, the area has been in a downward spiral for years.

However, as North City has fallen off most people radar, there are still islands of prosperous businesses and communities that are holding onto the area’s successful past.

One of the most recognizable of these areas is Crown Candy Kitchen. In business since 1913, this landmark is located at 1401 St. Louis Avenue in the Old North St. Louis (ONSL) neighborhood. It still draws patrons from all over the area to one of the city’s oldest neighborhoods just north of downtown.

Once part of a vibrant commercial community known as the 14th Street Mall, Crown Candy is now an island unto itself. Changing demographics and shopping preferences have caused most of the old businesses to shut down.

Although the storied first chapter of ONSL has come to a close, the next chapter is already underway. Crown Candy Kitchen has served as a bookmark to the area’s story, and it is now the focal point of many new opportunities for investors and homebuyers alike.

Taking advantage of this new energy, many development projects have already been completed or are currently underway. The most significant of these projects is the rehab and infill construction taking place at the North Market Place project. The 30-acre development area for this project is roughly bounded by Hadley Street on the east, North Florissant Avenue on the west, Monroe Street on the south and Benton Street on the north.

The project began in 2004 through the efforts of the Old North St. Louis Restoration Group (ONSLRG) and the Regional Housing and Community Development Alliance (RHCDA). When completed, the project will feature over 100 new and rehabbed single-family homes as well as a variety of commercial and rental spaces. Many buildings have already been completed.
The early success of this project has produced an influx of much-needed revenue and publicity for the area. More and more rehabbers and developers are turning their attention to this northern neighborhood due to the low acquisition costs and respectful profit margins.

Even though progress is being made,, the ONSLRG and RHCDA have not been at rest. They are already hard at work on their next project. This time they are taking on the one-time shopping destination known as the 14th Street Mall. Just south of Crown Candy, the project is set to require an investment of approximately $25 million. The mixed-use development is set begin by the Spring 2007 and take about 18 months to complete. Whether the development could bring similar retail activity to the area as was seen until the 1970’s is debatable, but it will defiantly help the neighborhood along on its path to rejuvenation.

Local volunteers, organizations and developers have put in countless hours to bring the ONSL neighborhood back from the brink of total destruction. Thanks to their efforts, the wrecking balls have been replaced construction vehicles and scaffolding. The neighborhood’s rebirth is still in the infantile stages, but it is going full steam ahead.

Even with the recent activity in the area, there is still a lot of opportunities available for developers and businessmen. The neighborhood has a variety of resources available, which as worth a look for those interested. For more information, check out the neighborhood website at www.onsl.org.

*UPDATE - It looks like this project is finally underway. They were having trouble with the financing, but demolition and construction have started. The Old North St. Louis Restoration Group has a great blog of their own tracking the progress: newoldnorth.blogspot.com

What you can do to stop copper thieves

*NOTE - This article was originally written in October of 2006 for the newsletter.

Salvage yards across St. Louis rarely ask where their customers get the scrap metal they bring in. That’s a shame, because they might be getting it from YOU! Copper thieves can turn a great rental or rehab building into a nightmare. Replacing the pipes can be costly and time consuming. Water damage caused by the resulting leaks can be even worse.

Other than standing guard 24/7, there is no failsafe way to eliminate this threat. There are, however, steps that you can take, which can make your property a less attractive target:

• Paint your exposed pipes - One method, which can be extremely effective, is to paint the exposed copper piping throughout your property. A good coat of spray paint can be the most cost effective method to copper theft deterrence. Salvage yards will not accept copper if it is painted. They only way thieves could get money for your painted copper, would be to undergo the time-prohibitive process of stripping off the paint.

• Good exterior lighting - Although not really that helpful against daytime thieves, good exterior lighting can make your property a lesser target. Motion detector lights are often the best choice. These lights will help cut back on electricity costs and light pollution, but still offer added security.

• Quality locks - To get to your copper, a thief has to gain access to the property. That’s where the locks come in. If all entryways into the property are secured with single and deadbolts, their job will be a lot harder.

• Secure basement windows - One of the most often overlooked trouble spots are your basement windows. The basement windows in most older houses usually have thin glass and are made of wood. If this is the case at your property, you should consider replacing or sealing off the trouble windows.

Make the most out of your showings

*NOTE - This article was originally written in October of 2006 for the newsletter.

You’ve been trying to lease that apartment for weeks. You finally have an appointment for a showing. The prospect tenant shows up and says how much they love the apartment. Weeks later the apartment still hasn’t been rented and you are still losing money. What went wrong? Was the unit not right for the prospect? Maybe, but it might also have been you.

One of the hardest parts of being a landlord is getting tenants for your units. Even the highest quality units can sit vacant if they aren’t shown properly. The greatest marketing strategy in town can be wasted if you don’t close the deal. Here are a few tips on how you can make the most of your showings:

• Remember that you are selling the apartment. The apartment will not sell itself. When the tenant arrives, you shouldn’t simply open the door and let them walk around. You should walk with them, pointing out the great features of the apartment.

• When the prospect leaves, make sure they walk away with a rental application and a flyer displaying all the information they need to know about the apartment. Once they walk out the apartment door, they have already begun to forget some of the details of the apartment. The flyer will serve as a refresher and make the apartment stand out from the others they might have visited.

• When giving the tenant a rental application or talking about the application, avoid calling it a credit or background check. These terms tend to scare away even quality tenants. Simply call the form a rental application. If they ask what that encompasses, let them know that you screen all tenants to help ensure the safety of all your tenants. That tends to be reassuring.

• Follow the “smells good, looks good, feels good” rule. Try to get to your showings before the tenant arrives. If the unit has an odd or stale smell, put an air freshener in the unit. If the apartment is too hot or cold, turn on the AC or furnace. Turn on the lights beforehand. Make sure everything is presentable.

Keeping to these rules will help you to make the most out of your showings. That’s an important thing. After all, each day the unit goes unrented is money out of your pocket.

Not renewing leases

*NOTE - This article was originally written in October of 2006 for the newsletter.

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 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 will generally lead to the most satisfying results.

• 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 lessen this feeling.

• Avoid threats and insults during the process. Even if the tenant vacates on time, these will increase 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.

If you follow these tips, your chances of a smooth transition will be much higher.
Use them wisely.

Speculators vs. Investors

*NOTE - This article was originally written in October of 2006 for the newsletter.

In the world of real estate investment, speculation is considered a dirty word to many. While wide-scale speculation can have adverse affects on neighborhoods, moderate levels can be beneficial to both the neighborhood and the investor.

When an investor purchases a property for rental or rehab, they are assuming that values will appreciate and that demand for rental or sales inventory will remain strong. These assumptions are, in fact, speculation.

Not only should investors keep on speculating, many of them should do it even more. The one factor many investors glance over when making a purchase, is the location of a property. Sure, they consider the quality of the neighborhood, but few investors really account for all the variables involved in improving values. This failure ignores one of the key methods to making profit in real estate: educated speculation

When values appreciate on their own without making improvements to a property, greater profits will be realized. The trick is to buy properties that have a higher potential for this type of value growth. When trying to locate such a site, investors should consider a variety of variables., such as:

• Size and quality of housing stock
• Current development activity
• Planned development activity
• Availability of development incentives such as tax credits or abatement
• Local businesses nearby
• Proximity to transportation

The more of these positive qualities a location possesses, the better the chances of seeing significant profit increases. The important thing to remember is that the safe profit is in being an investor, not a speculator. Never buy something that is a bad deal solely based on speculative assumptions.

If things don’t go as the speculator assumed, the property will be a major burden. For an investor, there is always a safely net. There may be more to gain by venturing outside this net’s protection, but there is also more to lose.

Commercial district forms in Tower Grove South. Or should I call it “Skinnytown?”

*NOTE - This article was originally written in October of 2006 for the newsletter.

The Tower Grove South neighborhood is an area in transition. Two years ago, a drive down Morganford Road between Arsenal & Chippewa, would take you through a corridor of boarded-up and run-down buildings. That same trip, today, will take you through an area of rehab projects and startup businesses.

These changes have happened, seemingly overnight, due in a large part to the influx of residential development projects in the area. Increasing population and housing values began to draw the attention of developers and business owners to the need for neighborhood business activity.

Enter the Tin Can Tavern & Grille at 3157 Morganford Road. The owners opened the bar’s doors in early 2005, with an adventurous spirit. Their gamble has paid off with better than anticipated business. This success has provided a new energy to the area, leading to a rash of new developments and businesses.

With the Vintage Haberdashery, Grove Furnishings and Stella Blues Bar recently setting up shop, the future looks bright. According to St. Louis mayor, Francis Slay, the area will also see an art gallery, day spa and another new restaurant in the near future.

There has been enough new business activity in recent years, that another positive movement has begun: the search for a nickname. Thus far, my favorite choice is “Skinnytown.” It really stands out to me. Time will tell if that sticks.

For investors, this movement offers a variety of investment opportunities. Whether you are looking for a location for your new business, for rental properties or rehab opportunities, the Tower Grove South neighborhood should be on your radar.

*UPDATE - In addition to the businesses listed above a new grocery store has popped up in the district along with a new restaurant called the Three Monkeys. There are a few other projects under construction, but their end-use has still not been revealed. Check back for updates.

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