In 2019, a group of investors, Jesse Wig, Adam Colucci, and Dan Spanovich, purchased an abandoned high school in Homestead, Pennsylvania for $100,000. They transformed the Bowtie High into a 31-unit apartment building. During the renovation, the partners jumped into a second venture and bought the Schwab School in 2020 for $90,000. Renovation of the Schwab building began in April 2022 and took 18 months to complete.
The building was in deplorable condition with trees growing on the first floor and water leaks from the top, requiring extensive structural work. The total cost of the Schwab School’s renovation ended up being about $4.5 million. By selling an old pickup truck they found there, they recouped $5,000. The partners aimed to take advantage of federal and state tax credits, hoping to receive around $800,000 in federal tax credits and the Pennsylvania state tax credits.
Upon the completion of the renovation, the converted school became a 33-apartment building, offering a mix of one-bedroom and two-bedroom units. Rents range from $950 to $1,450 for one-bedroom units, and $1,550 to $1,950 for two-bedroom apartments. Since leasing began, the building has reached 85% occupancy and is turning a profit.
The renovated Schwab School now shares amenities with Bowtie High, such as a double-decker garage, rooftop deck, basketball court, and gym. Although the partners currently have no immediate plans for another project together, they are considering separate ventures involving old buildings. Wig bought another school in Homestead, Spanovich purchased a different school in a neararea, and Spanovich and Colucci also acquired a former brewery.
For Spanovich, the joy of bringing old buildings back to life is unparalleled. He says, “The feeling that you get when you walk into this building, knowing what it looked like before and knowing that people said it just couldn’t be done, and seeing life in the building… It’s the best feeling in the world.”