River Campus spurs investment

Mike Bagby tore out areas of the attic Friday at 127 Hanover St, a property being redeveloped by the Coalter and Felty Investment Group. (Kit Doyle) [Click to enlarge]

As construction crews put the finishing touches on the River Campus, others are rebuilding the community around it.

Jason Coalter is one of these redevelopers and has been working on a new plan for south Cape Girardeau for more than seven years.

"Basically, we're committed to buying out the bad landlords of Cape and trying to rehab all the property and turn all the $5,000, $10,000 homes into $80,000 and $100,000 homes," Coalter said. "The good thing with the River Campus is it gives us a cornerstone to draw other investors and property owners to the area."

The Coalter and Felty Investment group, consisting of Jason, his father Ted and Roy Felty, own 100 total properties, about 90 of which are in the south Cape Girardeau area. Many are near the River Campus, which will open for classes just over a month from now. Cape Girardeau real estate agent Thomas Meyer said Coalter is taking the right approach.

"There is an intrest in their activity in that area," Meyer said. "What he is doing is far better than just buying rental properties. They are completely rebuilding homes -- repainting, replastering, everything."

Starting with two homes at the age of 21, Coalter, now 27, said bringing back the old and "ignored" part of town has always been his top priority.

"When we started there was no River Campus, we just wanted to rebuild south Cape," Coalter said. "People said I or no one would change downtown. But if you don't want change, it will never happen. And if you don't believe in change, it can't happen."

And according to Coalter, the homes are changed in a dramatic manner, helping bring entire neighborhoods back to life.

"It used to be that we'd almost be done with one house and the neighboring property would be a crackhouse," Coalter said. "So now we buy out landlords, entire portfolios. Most of these places have been worn down and milked for everything they can handle. But we will wait until the tenants move out on their own unless they are known troublemakers ... then we throw them out. We are trying to get rid of the slums and revitalize these areas."

Since 2004, the year the River Campus project was announced and Meyer brokered the sale of the old St. Vincent's Seminary to Southeast Missouri State University, nearly 70 residential properties have been bought within a half-mile radius of the location. Meyer said it's all about being able to recognize a good thing far into the future.

"A number of people look for trends in these markets, and many could see that area had potential in three to five years," Meyer said. "But even at that point, many investors just can't do that kind of thing. It's a high-risk, high-gain kind of deal. Even after property is bought there is a good amount of money that has to be spent on improvements."

High-risk investing is something Coalter knows about. According to Coalter, while investing some $2.5 million into the south Cape Girardeau area he has endured losses of more than $100,000. But Meyer said there is money to be made by "forward-thinking people" in improving south Cape Girardeau.

"I thought the potential boom for that area was actually three years away, but it has accelerated," Meyer said.

"The actuality of the River Campus has brought with it a potential for some big money to be made over there. There isn't big money in it yet, but there should be very soon."

That section of town has some tax money backing its turnaround as well. The area is part of the DREAM -- or Downtown Revitalization and Economic Development for Missouri -- initiative. The plan is Gov. Matt Blunt's effort to bring state grants and tax credits to areas needing a boost. The program includes an extensive planning process and accelerated consideration of requests for funding or tax preferences in the designated areas. Since receiving the designation in 2006, DREAM initiative projects have included a Community Development Block Grant to extend Fountain Street from Morgan Oak Street to William Street and Discovery Playhouse's Southeast Missouri Children's Museum moving from West Park Mall to a building on William Street.

The area's proximity to the River Campus also makes it a prime location for Southeast students. Some of the houses Coalter has renovated already have been leased to students.

Marla Mills, executive director of Old Town Cape, said her organization is definitely excited to see so much interest in rebuilding a once-great part of the city.

"This is certainly something Old Town Cape encourages," Mills said. "A healthy downtown community with developing residential areas will better support the downtown businesses, and that will lead to our community becoming more vibrant as a whole."

Mills said Old Town Cape expected future development near the River Campus as its reputation grew.

"We anticipated this kind of thing as it was being finished, and really more in five years," Mills said. "We expect development around the River Campus to happen in many different ways, from residential to commercial ... pretty much all around."

jsamons@semissourian.com

335-6611