Interview with Rich Tola
 |
|
Link to WestEnd Development |
Rich Tola and his partners were looking to looking to branch out from New York and build a real estate development business that could be replicable across the USA.
The partners bring considerable development experience and financial backing
to the table but needed project that would let them test their new approach.
The old Adams & Sickle Pharmacy building in Trenton fit the bill as moderate
sized historic renovation project in a potentially up and coming market.
The renamed Adams One building is in Trenton’s West End neighborhood which
sits off of West State St. about ½ mile north of downtown along the Raritan
and Delaware Canal. Before Tola began work the building was a drag on the neighborhood.
The question was what type of business model would work in a neighborhood with potential but no track record for development?
West End Development decided the right approach take a historic building and appeal to moderate income residents with a slightly higher end appeal that would help build the market. Tola and his partners believe they can repeat this model over and over even beyond Trenton.
The Adams One project took 20 months to get it 100% occupancy and construction took 15 months. However, transforming the historic building creates pride in place and has impacted the surrounding neighborhood. A Trenton fireman living nearby approached Mr. Tola during construction and told him “how much he appreciated the building and that it’s now occupied.”
The community now living in Adams One includes a Professor from Rutgers, a Dean from Thomas Edison State College, business people, State workers and retirees. They range in age from 25 -65.
Adams One was even recently on the Four Corners of Trenton tour presented by The Contemporary Club. Tola would like to host more of that kind of tourism as he’s seen how much people appreciate other Trenton tours like the ones in Mill Hill.
Adams One is fully occupied but Tola admits that initially sales prices were too high. He’s settled on a rent to own model that has struck a balance with the residents He thinks that as the current owners settle into Trenton life they’ll want to convert to be owners because of the financial advantages.
“It’s different in New York, where people are desperate to buy,” says Tola. Tola notes that, “Anyone who has a long term perspective is going to buy.” Trenton’s an investors market and eventually the bargains will be gone.
West End development is doing it again and this time in Roebling, NJ, 10 miles south of Trenton in what could be almost a franchise type of development. Unlike chain stores though, renovation projects are always unique even if the business model is the same.
Tola’s finished his first project in Roebling, a 4 residential unit 2 commercial unit project at 41 Main St. called Main St. Condominiums. It’s ½ mile from the light rail train station which leads to Philly and New York. It’s got Stainless steel, Pedestal Sinks and Slate flooring making it pretty upscale.
He’s got another Roebling property in the works, an old church that’s 4 units and only 100 yards from the train. This project is at 111 Norman Ave. So far the reaction has been positive.
While Tola continues developing Roebling, he continues to be patient waiting for his next Trenton project. Hopefully the wait won’t be too long.