Real estate broker Mark Updegraff talks about the transformation of a zombie home on Barton Street in the 19th Ward. (January 2017) Jamie Germano
The two-story home off Genesee Street in the 19th Ward had seen better days. Vandals tore through the century-old building, ripping out copper for resale with the entire interior and exterior falling apart from years of neglect and vacancy.
While many would see the zombie home as urban blight, Mark Updegraff saw it as an opportunity. He purchased the 2,500-square-foot dilapidated home for $33,000 in 2017 as an investment, fixing it up to lease.
"This is a popular area for investors," Updegraff said of the 19th Ward, noting its proximity to University of Rochester and the interest in walkable neighborhoods.
The Barton Street home is the latest in a series of investments in the 19th Ward for Updegraff. When it's all said and done, there will be two more units in his portfolio available for lease. In total, Updegraff, 38, has fixed up 30 separate buildings in the 19th Ward, with 50 rental units that his company manages. What began as a way to bridge the financial gap after he was laid off has turned into a full-time new career, with The Updegraff Group employing 27 staffers at his real estate and property management company.
The Great Recession
A graduate from Rochester Institute of Technology's image and photographic technology program in 1997, Updegraff went on to work at ITT in Rochester. But when the company lost a large government contract in the midst of the Great Recession in 2008, Updegraff found himself out of work. He could return to his roots in Williamsport, Pennsylvania, but his wife, Maria, a graduate of University of Rochester, insisted on staying in their adopted hometown. So Updegraff had to adjust and adapt, starting a new career in real estate.
Fortunately for Updegraff, he had invested in rental properties while he was working, so he had some seed money in the form of equity. He obtained his real estate license and found rapport with clients who were seeking a low pressure agent who didn't push for a sale. Updegraff would also scout out distressed homes to fix up as investments.
The city's 19th Ward called out to Updegraff. The southwest city neighborhood is filled with tree-lined streets and grand homes from yesteryear. There's a mix of racial, ethnic and economic diversity with doctors, students, politicians and poor families all living along side each other.
Updegraff scouted for distressed properties, doing his part to help the zombie home problem.
"We go into these areas knowing it will be a hard and slow battle, but if we endure and work together, we can change neighborhoods," Updegraff said.
The best part about restoring homes for rental is that it attracts caring tenants, he added. But he understands that it may be a struggle to retain these tenants in locations where bad elements live in close proximity.
A lot of the dilapidated homes have people who live there who get their income from illicit activities, Updegraff said. These homes look like zombie properties without being vacant, he explained. When these homes spread in an area, some stakeholders will turn their backs out of frustration, which leads to foreclosure or demolition. Vacant homes provide a breeding ground for more illicit activities and the problem just grows, Updegraff said.
On the upswing
Updegraff's latest project on Barton Street was a bank foreclosure. Each home has its challenges and this one is no different, with electrical issues after all the copper was ripped out. He estimates that it'll cost in the $100,000 range to restore it. The lower level two-bedroom unit is ready and will rent for $600 to $700. The four-bedroom unit upstairs will be in the $1,200 to $1,600 range once it's ready, depending on the season.
Part of being a landlord over the years is learning the fluctuation of the seasons. In the winter, apartments will fetch less in rent and in the popular spring and summer seasons, they will fetch more, he said.
City Councilman Willie Lightfoot welcomes investors like Updegraff to the 19th Ward, where he has lived for 20 years.
"Anytime the city can get a property on tax rolls, it's amazing," Lightfoot said, adding that he hopes to see other investors look to the 19th Ward.
The 19th Ward is bordered by West Avenue, Genesee Street, Scottsville Road and the Erie Canal. The southeastern area is called Brooks Landing and is connected to the University of Rochester by a pedestrian bridge.
The Great Recession that started in 2008 and stretched for a few years hit the neighborhood hard, Lightfoot recalled. People could barely keep their heads above water and may have had to leave their homes, he said.
Lightfoot owns a barber shop on Jefferson Avenue and was barely making it financially during the recession as people cut back. His income as a city firefighter helped him through the rough times but some were not as fortunate, said Lightfoot, 45.
"A lot of people couldn't handle it," he said.
Now, Lightfoot sees a new beginning for the 19th Ward, attracting new residents to a diverse community.
Longtime 19th Ward resident and business owner Livingston Walker looks out his window of Livie's Jamaican Restaurant on Chili Avenue and sees change.
"You see people new to the neighborhood, more families and many more younger people," Walker said.
MCHAO@Gannett.com