Construction is underway to rehabilitate and sell city-owned mixed-use properties

Real Estate Weekly, August 12, 1998

In 1996, NHS initiated a partnership with HPD to take distressed and often vacant city-owned buildings on commercial strips throughout the City and turn them into homes and thriving businesses for community residents. A total of 40 buildings will be developed in the first round of the program, 31 in Brooklyn and nine in Queens. After rehabilitation, NHS will sell the buildings at market value to small business owners, homebuyers, and investors from the community. To date, 26 of the properties in Brooklyn and five from Queens have been sold and will undergo rehabilitation in the coming months.

Rehabilitation financing is being provided by The Bank of New York, European American Bank and HPD. Permanent loans to buyers are being provided by The Bank of New York and GreenPoint Bank.

"The primary intent behind StoreWorks is to give languishing commercial strips a much needed shot in the arm," said Dave Beer, director of Housing Development for NHS. "Storeworks will make an important difference to more than two dozen commercial strips in Brooklyn and Queens."

For small business owners across the city, the end result of the StoreWorks program is a dream come true. Rupert and Melvina Joseph, who emigrated from Panama over 25 years ago, are the owners of Cafe El Pueblo, a West Indian restaurant in Crown Heights, Brooklyn. They have been renting the restaurant space in a city-owned building for the past 15 years. Through the Store-Works Program, they will purchase the mixed-use building once construction is finished and move into the apartment above the restaurant with their two children.

The Josephs are proud of their jump from renters to landlord. "I came here when there was nothing. The area looked like a war zone," said Rupert. "But, I stuck it out. Now, the neighborhood is continuing to improve, the restaurant is doing well and I am going to own the building where I live and work. Things for this area are looking good."

Like the Josephs, Michael Tate, owner of Touch of Beauty, is purchasing the building in Brownsville, Brooklyn where he has rented a storefront from the city for the past 14 years. What started as a small beauty shop on Belmont Street has flourished into an all-in-one barbershop, flower shop and beauty parlor. Though the business has grown, Tate insists on keeping it all in the family. His wife commands the beauty salon, his father helps with flower arrangements and his daughter will also join the family business once she receives her diploma from beauty school. When construction on the building is complete, he, his wife and their three daughters will occupy one apartment in the two-family building.

Michael feels that his transformation from renter to property-owner sends a strong message to the youth of the community. "I know the kids in the neighborhood. Through me, they see that it is possible to succeed - you can be a business-owner and a property-owner - if you just put your heart and soul into it, work hard and persevere," said Tate.

NHS is a not-for-profit citywide organization working to increase and protect investment in under-served neighborhoods, to help people help themselves through education, to encourage and support neighborhood,self-reliance, and to create and preserve affordable housing in New York City.