Preserving Savannah Historic Real Estate

Organizations such as the Historic Savannah Foundation have been trying to help restore homes in the Savannah historic district, either by putting in their time and money directly or finding owners who are willing to invest in the homes and take the time to renovate them. One example is a 130 year old Victorian home on 32nd Street called the P.J. O’Connor House. The house has been restored thanks to the foundation finding it a buyer in 2013. Just a block south of this house, over on 33rd Street is one of the first projects of the foundation. It was bought and restored before being sold four years before Daniel Carey became the CEO and president of the Historic Savannah Foundation in 2008.Across from that project, vacant lots are no longer vacant, but instead are home to three brand new single-family residences. The new homes are a testament to the positive impact of Savannah home restoration and thus helping the profile of the neighborhoods in which they reside. Instead of abandoned communities, they become thriving neighborhoods with a mix of new and old.

The Historic Savannah Foundation sees their position as one of influence. If they can work on saving a few properties here and there, it can motivate private investors to do the same. Besides private investors, those with interest in renovation can find historic Savannah properties for less and bring them back from the dead either as investments or private residences.

The Historic Savannah Foundation’s Lincoln Street initiative began in the Thomas Square Streetcar Historic District, which was one of four different historic districts in Savannah that was explored for a study on the economic impact of restoration. The study highlighted the benefits of preservation on residents and businesses. In order to take a closer look at the benefits of preservation, the foundation hired the PlaceEconomics firm’s principle of consulting to study the role of historic neighborhoods. The study discovered that preservation of historic buildings leads to more jobs, better property values and further tax revenue to benefit public services.

In some cases, the historic downtown properties have interest to investors, not just as residences, but as potential businesses. That was the case with one Kevin Ryan, who went into the restoration of a 20th century warehouse located on Indian Street. The building was in the downtown Landmark Historic District and it happened to fit Ryan’s idea of a micro-brewery. Various other parties interested in the building mostly wanted to demolish it. Because it ended up being the rehabilitation of a historic property, it also qualified for tax credits.

Similar restoration projects in historic Savannah that have qualified for tax credits have led to the creation of around 169 jobs and labor income worth $7.5 million per year over the last 15. Some investors have said that the tax credit aspect has significantly influenced their decision to buy abandoned Savannah homes for sale in historic areas. Lonnie Coulter is one of these and he bought a late 1800s era house on East Park Avenue, partially due to the tax credits and partially due to wanting to save a piece of Savannah’s history. The house was a Victorian style structure with turrets and stained-glass windows. The house had been vacant for years before Coulter bought it and had fallen into extreme disrepair.

The historic districts in Savannah make up about eight percent of the land in the city and about 15 percent of the structures on the land. The districts also include 16 percent of Savannah’s population and 31 percent of the jobs in the city. Up to 74 percent of jobs in educational services are in historic districts and 57 percent of arts and entertainment jobs. Not only that, but the rates of appreciation on historic district buildings have averaged over 50 percent since 1999. Because of this higher appreciation rate in the historic districts, an additional $10 million in tax revenue is brought in every year.