Opportunities in adaptive re-use spurs momentum.

A basic tenet of economics 101 -- inadequate supply vs. steady demand -- is continuing to drive the Metro New York Area's real estate market. A fundamental cause of the dramatic supply/demand imbalance in our densely-packed region is the lack of developable land for new construction. In turn, that land scarcity is motivating a growing number of developers/investors to add adaptive re-use to their project mix.

As an architectural firm that has designed more than $100 million in such assets, Poskanzer Skott has in-depth, first-hand experience of the numerous benefits of, and solid potential for profit in, transforming older, historic, underutilized or abandoned properties into intriguing, appealing, highly marketable multi-unit housing, office space and medical practice facilities.

One of the strongest rationales for the growing momentum for adaptive re-use is also the simplest: these buildings are already there, in established neighborhoods and communities, near existing transportation systems, shopping, schools, hospitals, recreation and community services, complete with all utilities. And they are there in relative abundance.

Be they picturesque mills, appealing Victorian mansions, rundown tenements or abandoned factories and warehouses, any building not living up to its original use is a candidate for creative adaptive re-use. Witness the transformation of the meat packing district's undistinguished warehouses, the expansive lofts carved from Financial District office buildings, the manufacturing sites and lumberyards that have found new life as apartments and offices throughout New Jersey's cities and suburbs. They are not limited to historic buildings, or even those with architectural detail and charm. Old warehouses with ceilings of 12-13 feet considered too low for modem purposes are, for example, wonderful, practical shells for housing or offices (where raised floors accommodate technology).

Adaptive re-use projects offer a refreshing change from the dreaded, ponderous, expensive, frustrating "stop/start/go/no" approval process for new construction in high density areas. When a community knows that you are going to take an abandoned or underutilized property and attractively transform it, increase nearby property values, and generate tax revenue, customary blockages to approvals melt away. Rather than entrenched NIMBY resistance, municipalities and neighborhood groups tend to support efforts that end urban blight. Thus, many road-blocks to new development -- heated debates about density, preservation of green space and wildlife habitat, noise, pollution and lack of facilities to support population growth -- are neutralized.

By virtue of eliminating or decreasing the amount of time, effort and money expended to gain community support, undergoing an expedited approval process and the (usually) reasonable cost of land and building shell, adaptive reuse projects translate into cost savings for developers.

Drawing upon their experience on over 25 significant adaptive re-use projects, Poskanzer Skott advises that cost savings are found differently in each one. Older and/or historic structures present unusual design and construction challenges. Some contribute to and others subtract from project costs. Windows can be oddly shaped, larger or deeper than modern, new construction standards, adding to replacement cost. When retrofitting multi-story buildings, new mechanical systems must be run to the roof or through brick walls. Roofs and walls that on first inspection seem secure, may have to be replaced. Architectural detailing to be retained requires restoration. Historic districts set restrictions on what can be done to the skin of the building. Requesting government funding for historic restoration means the masonry cannot be changed.

All this being said, adaptive re-use offers what new construction, no matter how beautifully designed, cannot: the resonance of history, a unique sense of place, the charm of original architecture and detailing and priceless, non-institutional character.

Turning an old historic brick mill into apartment units where few are alike and all have special charm creates a visually stimulating, warm, inviting and user friendly environment that is highly desirable and uniquely marketable; like the 48-unit building Poskanzer Skott is completing at the Mill at Little Falls, previously the Beattie Carpet Mill.

Because adaptive e re-use projects are never plain vanilla boxes, architects have great opportunities for creativity to compliment the property's uniqueness. It is also a chance for architects to show their respect for and draw inspiration from history.

Adaptive re-use projects are an unparalleled opportunity for success. The developer gets to ride into town in a white hat. The town gets an attractive, taxable asset. Users get a distinctive, friendly home or office environment. Architects get inspired to ratchet up their creativity. And forlorn, derelict buildings, their history and tradition acknowledged, are resurrected as valuable real estate assets.