A fixer-upper in Georgetown is on sale for $50k. It’s a wall(washingtonpost.com)
washingtonpost.com
A fixer-upper in Georgetown is on sale for $50k. It’s a wall
https://www.washingtonpost.com/dc-md-va/2023/07/25/georgetown-wall-allan-berger-sale-real-estate-dc/
2 comments
So I'm uncertain how much land is involved... (12"? more? the article isn't clear.)
But in california it is common to buy a house, demolish it EXCEPT for one wall, and then build a ship-of-theseus house around it, usually a larger very modern house.
That's because new construction is treated very differently from renovations, and using an existing wall satisfies that requirement.
But in california it is common to buy a house, demolish it EXCEPT for one wall, and then build a ship-of-theseus house around it, usually a larger very modern house.
That's because new construction is treated very differently from renovations, and using an existing wall satisfies that requirement.
Walls represent, indeed are, non revenue generating assets with recurring operational costs. It makes sense to release tied-up capital by selling them off, then leasing back. The operators of the walls can reduce costs by operating walls at quantities that afford economies of scale, provide innovation as mentioned in the article through perhaps providing spaces to artists, or even radical wall transformation perhaps by installing and partially replacing with solar and battery packs, neighbourhood social facilities, and more.
The owner of the wall benefits from core property revenue stream plus innovative applications. The prior title owner benefits from lower cost compared to direct management, free capital not tied up in the wall, and from innovation provided by the wall operator. Win win.
When thinking at scale, it's incredible that walls are so late to financial innovation.