Redevelopment in south Wichita could help with need for less-costly apartments

Most people who drive by the weary looking brick buildings just south of Kellogg on Oliver will see an apartment complex whose best days were long ago.

But city officials and a couple of developers see something else in the old Eastwood Apartments: tremendous potential to meet a substantial need for less-expensive rental options.

“This goes to really a bigger picture here,” Wichita City Council member James Clendenin said of Eastwood’s renovation. “Projects like this are a big deal.”

Firm numbers aren’t readily available about a perceived shortage of less-expensive rental options in the city — units that rent for half or less of the cost of apartments downtown. But officials point to a similar project that filled up as quickly as units became available.

The council recently approved nearly $6 million in industrial revenue bonds to finance the purchase and renovation of the Eastwood Apartments. The complex has already been renamed Sandstone Apartments as part of a renovation that is expected to take two years.

Mike Garvey, president of Builders Inc., used the word wonderful when discussing the Sandstone project, even though his company isn’t involved. Renovations of apartment buildings are underway elsewhere in Wichita, too.

Gaps have emerged in Wichita’s apartment market, Garvey said — new developments downtown and in the suburbs but not much in between.

A lot of apartments have been built around Wichita in the last 10 years, Garvey said, particularly downtown. While those projects have been good, he said, “the price point is pretty high.”

According to data provided by the Greater Wichita Partnership, studio apartments in the newer apartment buildings and complexes that have opened recently downtown range from $650 to $1,280 a month, depending on their size.

One-bedroom apartments downtown range from $780 to $1,250, depending on size, and two-bedroom apartments can range from $925 to $1,600, depending on size and number of bathrooms.

“Everyone wants to live someplace nice, and not everyone can afford it,” Garvey said.

Rates have not yet been released for Sandstone, according to an office manager, but Eastwood rented two-bedroom apartments for $440 a month and large one-bedrooms for $400 a month.

“People always need places to live,” Garvey said.

The Sandstone features 118 apartments in six brick buildings, along with a commercial building that faces Oliver. The complex was built in the 1950s for young adults and families settling in after World War II and the Korean War.

It has deteriorated over the last several years and has been described as an eyesore for the city next to a high-traffic street.

“Oh, my goodness — I can’t believe how dilapidated they were,” said Clendenin, who represents District 3 in south Wichita.

Rotting wood balconies, rusty sinks, gaping holes in the walls of some apartments and cracked concrete in stairwells were among the images shared with council members.

The new owners, Brent Hurst and Dave Murfin, plan to spend an estimated $3.75 million in a complete renovation of the interior and exterior of the buildings.

“I was just very comfortable with this project because he has a great track record with me,” Clendenin said of Hurst.

High demand at Linwood

Previously, Hurst purchased and renovated the Linwood Park Apartments, which he rechristened the Residences at Linwood.

That project involved 90 single-story fourplex buildings on 22 acres in the 2000 block of South Hydraulic. It took Hurst four years to renovate the buildings.

Demand for the apartments was so high a waiting list developed as each fourplex was completed. Studio apartments rent for $375 a month, while two-bedrooms go for $550 a month.

“That, to me, shows the extreme need for affordable housing,” Clendenin said.

As he did with the Linwood project, Hurst will renovate one building at a time at the new Sandstone. Clendenin said he has no doubt Sandstone will fill up as apartments become available.

Hurst did not respond to several calls seeking comment about the Sandstone project.

“I think it’s significant to see someone investing nearly $6 million anywhere — but especially where they’re going in,” said Tim Goodpasture, economic development analyst in the office of urban development for the city of Wichita.

The project is significant for south Wichita, Clendenin said. While other parts of the city have seen significant retail and housing development in recent years, his district has lagged behind.

“We don’t want it to be the millstone that’s holding the city back,” he said.

The area near the new Sandstone has seen some recent development, Goodpasture said, with a Kwik Shop, a laundromat and a car wash all opening fairly recently.

“I think it can be a catalyst, especially when you look around this particular area,” he said of Sandstone. “You’re at a high-traffic intersection and there are still some opportunities to do some development and some redevelopment.”

The renovation of Linwood hasn’t spurred development in the surrounding area, even though the apartments are full. The lack of available land is a primary reason for that, Clendenin said.

“The restaurants just north of there are thriving,” he said.

Growing list of projects

The Sandstone’s renovation adds to a growing list of older apartments around Wichita that are being renovated and given a new lease on life.

Bellaire Apartments LLC recently completed a renovation of the old Parkside Apartments at 928 N. Carter in Riverside and rechristened them The Carter.

“They took everything down pretty close to the studs,” property manager Nathan Read said. “Everything is pretty much new.

“At this point, the only thing we have left to do is the parking lot. Everything else has been completed.”

Interest in the 47 units — most of them one bedroom, with five studios — has been strong, Read said. He’s conducting several showings a day.

The one-bedroom apartments at The Carver rent for $659 a month, and the property accepts tenants who receive financial assistance.

“To be able to have refinished apartments that are quality and right in the middle of everything” near parks and restaurants and downtown is proving appealing to prospective tenants, he said.

The one drawback he’s heard, Read said, is that The Carter has no two-bedroom apartments. Beyond that, he said, “we’ve gotten a lot of positive feedback.”

Bellaire is also renovating Longfellow Apartments just northwest of Harry and Rock Road. That 72-unit complex has been retitled The Tower as the owners seek to rebrand a complex that had earned a reputation for criminal activity.

“Those tenants that were a headache are no longer here,” Read said. “We’ve worked hard on doing more background and security checks” on prospective tenants to avoid future problems.

Those apartments rent for $450 a month, according to the property’s website.

Bellaire is also renovating the 18 town homes at Beech Town Homes near Harry and Webb Road.

Statewide trend

The flickers of affordable housing redevelopment in Wichita reflect a statewide trend, officials say.

Activity at the Kansas Development Finance Authority, which issues bonds for affordable housing projects, “slowed to a virtual halt for about four years” following the recession, said Rebecca Floyd, executive vice president and general counsel for the state agency.

“We’re finally seeing a resurgence in the last few years” around the state, she said. The agency provided bonds for two or three projects last year and is on pace for another two or three this year.

But none of those projects has been in Wichita.

“There’s nothing active right now in Wichita” involving the finance authority, she said.

There is ample opportunity for smaller renovation projects around Wichita — perhaps 20 to 40 units, Garvey said. The challenge is making the economics work.

But Garvey said it’s only a matter of time before more projects like Sandstone and The Carter happen.

“We would love to do some more low-income projects in the future,” he said.

This story was originally published July 21, 2018 at 10:25 PM.