This sweet little 2 bedroom cottage in downtown Historic Lexington, Virginia, is now under contract and slated to be sold at the end of June. With commercial zoning and previous residential use, it has flexible usage options. In addition, as a contributing building in the Lexington Historic District, it is a candidate for state and federal rehab income tax credits, which return up to 45% of rehab expenses to the owner upon completion of a qualifying rehabilitation project.
The Harlow family acquired the home on its very large park-like lot (nearly an acre) in the mid-20th century. It was owned in the late-19th and early-20th centuries by the Sheridan family, who operated a livery and stable a block away (the “Sheridan Livery Inn” on N. Main). The property is historically known as the “Back Spring Lot,” after the very bold spring in the back yard that serves as a principal source of water for Town Creek, a tributary of the Maury River. As one of downtown’s only “waterfront” properties, it offers a shady respite from the summer heat.
The building’s unusual shed roof with a tall front parapet-like façade lends the cottage a less-residential look than other houses nearby; the two 4-panel front doors suggest it was previously used either as a duplex or as a house + shop/office. The cottage appears to have been built in at least two stages, and was last renovated in the 1990s. Original wood siding, a 1920s Craftsman-style front porch with exposed rafters and shaped rafter tails, and most of the stone perimeter foundation are some of the cottage’s intact character-defining features. The turned wooden posts are 1990s replacements of what were likely plain square posts.
If you’re an investor or business owner looking to buy or sell a house or commercial property such as this one located in Historic Lexington, please get in touch. 540-460-2201 or firstname.lastname@example.org
When people think of restoring old buildings, often the buildings that first come to mind are historic houses or museum restorations. But in places with historic commercial districts, there are also commercial buildings that warrant preservation and rehabilitation. And while grant funds for renovating privately held properties are pretty slim pickings, for owners and long-term leaseholders of historic income-producing properties, there are financial incentives in the form of state and federal rehabilitation tax credits that exist. For qualifying projects in Virginia, tax credits can offset up to 45% of renovation expenses. So if you have a $100,000 renovation planned, you could get back up to $45,000. Pretty nice return on that investment, right?
To qualify, your property has to be historically designated, either individually or as a contributing resource in a historic district. The renovation has to be planned in advance of construction and pre-approved by state and federal reviewers. It also has to be “substantial” in nature (meeting minimum spending thresholds). Once the project is completed, it has to be certified (again, by state and federal reviewers) to have met the standards and followed the pre-approved plan. Finally, the property must be held by the credit-taking owner for at least five years.
That’s it! Well, the process is pretty straightforward, but working with old buildings often isn’t so cut-and-dried, since every building has a different set of features that make up historic character, and therefore every renovation is custom, not cookie-cutter.
The two buildings highlighted in this post are in the Lexington Historic District, which is listed in both the Virginia Landmarks Register and the National Register of Historic Places. Both are potential candidates for the Rehab Tax Credits program, and both are currently listed for sale through James River Realty. Contact me anytime for more information.