Every time there is a conversion of an existing apartment complex there is the potential for the loss of that endangered species known as "affordable housing." That was on the minds of Alexandria City Council last Saturday as they discussed the conversion of The Boulevard of Old Town Apartments to "The Bearings."
Recently approved by the city's Board of Architectural Review, the conversion to condominiums is not subject to approval by the city's Planning Commission since it is not changing the use of the plot nor the buildings. It is only converting the ownership structure.
Located at 718, 722, 820A, 820B, 906, and 922 South Washington St. and 719 South St. Asaph St., the seven buildings were previously owned by Archstone-Smith. The complex was recently acquired by Miles Properties, Inc., of Atlanta, Ga.
The project came before the architectural board because the new owners are proposing to upgrade the windows and install in-wall heating and air conditioning units. Any of those changes that front on Washington Street are subject to board review under its historic preservation mission. The board also addressed the proposal for replacing the roofs of the buildings.
During a Jan. 11 meeting at the Holiday Inn Select, present tenants of the complex were given an overview of what the new owners were proposing as well as the option of buying one of the newly renovated units upon completion. Potential vacating of apartments will be based on individual lease expiration dates, according to John S. Huckaby, development/project manager, MPI.
"Although we've gotten over 600 pre-registrations, we can't accept any contracts right now because we haven't been approved yet by the state for condo use. But we are working on 14 vacant units at this time," Huckaby said.
Of those pre-registered, MPI's database report showed that 177 or 30.5 percent were in the 30 to 39 year old age bracket; 104 or 17.9 percent were in the 40-49 year old age bracket ; and 71 or 12.4 percent were in the 50 to 59 year old age bracket. The smallest group 23 or 3.97 percent were in the 60 plus age bracket.
MOST OF THOSE who preregistered indicated they would be purchasing as tenants, 491 or 84.66 percent. Only 55, or 9.84 percent, indicated they were interested as investors rather than residents.
In a letter to tenants dated Dec. 27, 2004, MPI stated, "Be assured that you may remain in your apartment for the remainder of the term of your lease."
However, it also stated, "Upon registration of the condominium with the Virginia Real Estate Board (which we currently expect to occur in late February or early March) the Declarant will send each tenant formal notice of the registration and will request all tenants wishing to purchase a condominium unit visit the Condominium Sales Office ... to enter into a binding Purchase Agreement."
It went on to say, "Should you choose not to purchase your unit, the formal notice will state that you will have either 120 days after the date of the Formal Notice or until the expiration of your current lease, whichever is later, to vacate your unit." It also informed residents of the Jan. 11 meeting.
Prior to that letter, a notice was sent to all residents on Dec. 14, 2004 informing them of the sale to MPI. It also stated, "Each current resident will be offered the chance to purchase a condominium unit ... Current leases will be honored."
"We named them "The Bearings" to capitalize on Alexandria's seaport heritage and to appeal to the younger potential residents. It has a dual meaning — bearings at sea and getting your personal bearings," Huckaby said.
Of the total 158 units in the complex, about 30 existing residents have indicated they are interested in buying a unit, according to Huckaby. "The projected prices range from approximately $210,000 to $400,000," Huckaby said. This does not include a private outdoor parking space which is estimated at an additional $17,000, according to testimony at City Council.
THREE OF THE EXISTING buildings have central heating and air conditioning. The remaining four will be equipped with through-the-wall combination units, Huckaby said. Presently there are window units in the non-central HVCA units. These are being replaced with the walled-mount units.
"We will be replacing all electrical outlets and upgrading the overall electrical system. There will be phone and cable outlets in every room of every unit," he said.
"We are redoing all the baths and putting new kitchens in most units. We are also replacing the flooring with upgraded hardwood plank floors from Brazil," Huckaby said.
Kitchens will contain a combination washer/dryer unit for small clothing volumes. "We will still maintain the central laundry facilities but these new units allow residents to do small volume washes right in their own units," he said.
"Although BAR approved the window replacements and the HVCA through-the-wall units, they recommended repairing the existing roofs rather than replacing them," Huckaby said. MPI had proposed replacing the existing damaged slate roofs with "new architectural asphalt singles." The Board of Architectural Review rejected that request.
The converted complex will consist of 54 studio units with one large area complemented by a kitchen and bath but no separate dining area. All the others will have a separate dining area. They will be composed of 21 two-bedroom units, 75 one-bedroom units, and eight one-bedroom units with a loft, according to Huckaby.
"We will be incorporating landscape enhancements with tables and benches for picnic areas," he said. "All buildings will have key panel entrances."
In its promotion piece, MPI lists some of the amenities at "the Bearings" as: Gourmet kitchen appliances, ceramic flooring in kitchens and baths, oversize bathtubs, intricate crown molding in living areas, and parking available.
"I think this is a great opportunity for me to own my home," said Richard Downs, an apartment resident for the past 10 years and resident relations manager for MPI. "This is something I have dreamed about."
THE FIRST COMPLETELY renovated unit will serve as MPI's sales office. It is located just behind the present leasing office at the corner of South Washington and Green streets. "This is going to be a very successful project," said Barbara Presley, MPI's conversion administrator.
"We (MPI) have developed over 1,000 condo units over the years. And, we have owned over 11,000 apartments units," she said.
Once the project is complete, MPI will turn the newly converted complex over to the newly formed condominium home owners association, according to Huckaby.
"Existing residents will get the first 60-day right of refusal on their particular unit. And present residents will get a $7,000 to $10,000 discount on the purchase of a newly renovated unit," he said.
"We are encouraging people to buy a unit other than their present unit so we can move them directly into a newly renovated unit. However, if we get enough requests from tenants who definitely want the unit their in we'll either set aside some suite units on site or they can move elsewhere while we are renovating their unit and then move back," Huckaby said. It takes approximately 30 days to renovate a unit.
MPI bought the complex from Archstone on Dec. 14. Sales will be handled by the Bryan Group, Vienna, Va.
"Everyone who was here when we bought had a 12-month lease. We intend to move forward based on those leases," Huckaby said. "We're excited to be here."