Chestnut Manor in Salem, Virginia, sold to local partnership

Chestnut Manor, a historic 40-unit apartment complex located at 231 Chestnut Street in Salem, Virginia, has sold to a local partnership for $1,070,000.  The new owner is listed as 231 Chestnut Street, LLC.  Jason Fountain, CCIM and Clay Taylor with Waldvogel Commercial Properties brokered the transaction on behalf of the Seller.

According to Fountain, the City of Salem has pledged up to $350,000 in grant contributions to support the overhaul of the building.  A five-year property tax abatement was also given in conjunction with the offer to waive building permit fees, utility hook up costs, and many other standard construction fees that are usually assessed by the municipality.  According to Fountain, a performance agreement was formally approved by Council and memorialized by the Economic Development Authority on January 25, 2017.

The property has been a recent source of controversy for some as the transfer of ownership resulted in the displacement of the current residents of the property.  Some expressed vocal opposition to being told their month to month leases would no longer be renewed.

“The property had deteriorated over the years,” said Taylor, “and had reached a point where it was becoming unsafe. It needed to undergo a complete overhaul.  The distinctive post World War II architecture made the building a prime candidate for historic tax credits, so we targeted buyers who wanted to pursue the preservation of the structure,” said Taylor.

According to Fountain, the supply of buildings that are poised for adaptive reuse in Roanoke City is becoming scarce. “In recent years we have seen dozens of similar projects in Roanoke that have revolutionized its Downtown,” said Fountain.  “With few obvious opportunities remaining, we are seeing developers looking to branch out into surrounding markets such as Lynchburg and Danville. The Downtown Plan adopted by Salem’s leadership has created momentum.  As a Salem resident, I think it’s especially exciting to see projects like this taking place.  Following this sale we hope to continue the dialogue with other owners in and around Downtown Salem about how to take part in the growth and revitalization of our community.”

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