Commercial Street attracts West Coast developer

by Paul Schreiber

SBJ Reporter

pschreiber@sbj.net

A California investor may give Commercial Street a boost with the purchase of six buildings.

Dan Baker, president of Green Valley Investments and a five-year city councilman in Long Beach, Calif., has three buildings under contract for an undisclosed amount. The three sales are expected to close by the end of July, said Jacob Krizan, the Coldwell Banker Vanguard Realtor who was the listing agent on two of the properties.

Baker's grand design is the purchase of six buildings from 320 E. Commercial to 338 E. Commercial and, if successful, the price would run about $1 million, he said. Renovating those properties would probably cost $1 million more, he said, adding that lofts and ground-floor tenants like coffee shops or restaurants are likely.

Baker was represented in the transactions by Stan Myers, Realtor with Coldwell Banker Vanguard Realtors.

Properties under consideration

Under contract are Joe Hosmer's building at 334 E. Commercial, Jim Downing and Nancy Hackett's building at 326 E. Commercial, and David and Linda Wilson's building at 320 E. Commercial.

"With this large of an investor buying an entire city block, there's going to be some activity generated from it, I hope," Krizan said.

This isn't the first incursion Baker has made into Springfield's real estate scene.

He owns a large single-family residence at 1219 N. Jefferson and a nine-unit apartment building at 1225 N. Jefferson.

Baker also owns properties in Florida, Arizona, Virginia, Utah, Nevada and Oregon.

The block where the buildings are located is on the National Register as an historic district, said John Simmons, executive director of Urban Districts Alliance.

They are eligible for rehab tax credits, he said. Rehabilitation of the buildings that meet Secretary of the Interior standards would allow for a 20 percent federal tax credit and 25 percent state tax credit, he added.

There are also possible monies from UDA's faade loan program, Simmons said, which provides loans at 5 percent interest with a 10-year term and a $40,000 maximum.

Owner reaction

"It's about time," said Jim Downing, of Baker's offer to buy the 1,200-square-foot building he's owned with his wife, Nancy Hackett, at 326 E. Commercial for about eight years.

Linda Wilson, who's owned 320 E. Commercial with her husband for about 10 years, wished the city would have gotten behind developing the area earlier.

"We were hoping that what happened downtown would happen (on Commercial Street) and that we'd be sitting on a gold mine," Wilson said.

Compared to property values in California, the buildings Baker is considering "must look like a fantastic bargain," said Hosmer, an attorney with Hosmer and Wise. Baker's interest is a reaffirmation of what Commercial Street property buyers have known for some time that the area has an economic viability that could parallel what's happened on South Avenue and in downtown Springfield, he said.

There's five or six blocks on Commercial Street that "could rival anything downtown, if it was done right," Hosmer said, citing proximity to Drury University and Assemblies of God facilities. The area needs an infusion of "new blood" to get it going, he said. "Eventually, it catches on. As long as the city supports it, it will keep building."

Commercial Street properties appear to hold some promise for would-be buyers, Krizan said.

"I think the market's good. I think that people are going to start investing in Commercial Street more as downtown prices keep going up."

The six buildings Baker has under consideration are directly across the street from the Farmer's Market, an open-air emporium for selling area produce and other local goods. The market is located in front of the Jefferson Avenue Footbridge.