Neighborhood Renovation:
Personal Commitment, Design Excellence, and Long Term Profitability
Land Development Magazine,. June 1995
There is a neighborhood on Starkville, Mississippi that has undergone a transforming renovation. Not exactly a redevelopment, with its implications of public/private partnerships, zoning battles, endless meetings and continuing legal costs. Rather, the process was more like a renovation. The same way a homeowner would renovate a beloved yet decrepit home, this neighborhood renovation was done slowly, thoughtfully, and incrementally. What was once a place of decay and neglect is now a profitable and unique “historic” residential district. Historic as it may look, it was built during the last 30 years by one independent developer.
Dan Camp is the builder who has made his neighborhood renovation project, The Cotton District, his life’s work. He has hand-built a rich variety of charming buildings that provide him with steady monthly revenues and a portfolio of properties that grows in value every year. In doing so, he has provided a unique and profitable development model; one with applicability in neighborhoods throughout the country. His approach is unique, and not for everyone. But for developers who share Dan’s skills and who are living in areas with similar land costs, it is a strategy that can be deeply satisfying and very profitable. Reviewing Dan’s experience, the following factors contribute to The Cotton District’s success:
Personal Commitment
Neighborhood renovation requires a committed developer who undertakes the enterprise for long-term personal satisfaction and long-term profit.
Dan Camp’s commitment to The Cotton District was the key to its success. He moved into the neighborhood in 1969 with the intention take the neighborhood development as far as he could. At the time, Dan’s friends and family thought it was a very bad idea. But Dan had a vision for what he could accomplish over time and how the properties, and the neighborhood, would grow in value as the years went by. Dan developed his properties as rental units, maintaining ownership of the buildings. Had Dan sold out 5, or even 10 years after beginning to develop the neighborhood (if he could find a buyer), most naysayers would have smugly concurred with one another that, in fact, Dan’s idea had been misguided at best. But Dan’s is a long-term strategy. He persevered and succeeded.
Dan’s commitment to the Cotton District continues to this day. He has a full-time maintenance crew to keep the area free of litter and deteriorated finishes. He rigorously maintains the landscaping and public areas. Anyone in the neighborhood can call him about anything and know that he will respond immediately. He is at home in, and in charge of, the place he created.
Commitment to Quality
The neighborhood developer should have the artist’s appreciation for beauty and the craftsman’s ability to produce it
Dan began his interest in architecture and urbanism from traveling. He developed an understanding that certain places were more beautiful than others. The beautiful places had finely detailed buildings, with handcrafted details to delight the eye. Beautiful places had shady courtyards and brick pathways lined with flowering hedges. Beautiful places had both sides of the street in an urban dialogue with each other. Beautiful places had a sense of history and made you feel special to be there. Dan’s goal, after spending time in beautiful places like Savannah, Natchez, Charleston, and Williamsburg, was to build such a place.
And Dan Camp is a craftsman. A master builder in every sense of the word. He understands wood. He knows stucco. He knows what his tools can do. Dan takes intrinsic enjoyment from building windows, doors, moldings, and finishes that recall the best places he has visited. He has the woodworker’s ability to see a cornice treatment while walking down a New Orleans street and replicate it in his shop 3 weeks later from memory. He makes accurate observations about materials, proportions, and layouts of neighborhoods that he loves and recreates them in the Cotton District.
Dan’s commitment to quality urbanism and architecture has gotten the project noticed. Even in a small town in Mississippi, Dan gets visited by some of the most famous architects in the world who come to admire his work. He enjoys exchanging ideas with them and understands how unusual this attention is. Dan was recently nominated for a prestigious national architectural design award. He’s happy to be the first non-architect to be recommended for the honor.
The Right Neighborhood
The ideal neighborhood must be in an area with very low land costs that are projected to remain low in the foreseeable future, and it must be located close to a target rental market.
The Cotton District was originally filled with dilapidated mill worker housing when Dan began developing in 1969. There were many tiny, inexpensive houses and vacant lots within a four block radius. Lots could be purchased for $3000. The town had no development pressure or competition for land. And the Mississippi State University was less than 2 miles away and provided a continuing source of renters - students.
The Right Unit Types
Small units are more profitable because they can sustain a higher monthly rent per square foot.
The Cotton District’s apartment units are very low in square footage and very high on charm and amenities. Floor plans can be as small as 400 square feet, but all have soaring ceilings, sleeping lofts with under-eave storage, porches or courtyards, dishwashers, and stacking washer-dryers. The monthly rental price per unit is the same as the rest of the market, even though The Cotton District units average 30% smaller than those available locally. They are ideal for students and young professionals who prefer to allocate their monthly rental budget to a smaller, better equipped space in a unique environment, rather than spending the same amount for a larger, conventional unit. In addition, Dan assembles some small units into larger buildings - buildings that look more like historic mansions than affordable housing.
Incremental Development
The neighborhood developer should be willing to postpone profit taking and keep credit to a minimum.
Dan’s first Cotton District building had 6 units and was built in 1969 while he was still teaching. It provided supplemental income and funds to develop the next property. By 1972, Dan had 16 units and enough monthly rental income to quit his university job. He lived frugally (living at the time in a dilapidated shack known affectionately as “the snake pit”) and reinvested all profits. Credit was kept to a minimum. No capitol partners were needed. Dan set his own schedule and developed what his funds allowed.
In 1986, Dan developed a small PUD of for-sale row houses, to add some stability to the local residential base and to increase the overall neighborhood value. He stretched his resources and had moments that most developers can imagine, but Dan finished “Planter’s Row” and did, in fact, increase the value of the neighborhood.
!In 1991, Dan purchased a small restaurant in the neighborhood. Revamping its menu to cater to the University crowd, the “Grill” immediately became the neighborhood social center. Over the past 5 years, the overall neighborhood continues to mature and escalate in value. He is currently building “The District Exchange” a 2500 s.f commercial center for the local residents with apartment units above the retail. He’s looking for retailers who will stay open 24 hours a day to serve the student population.
Dan Camp is living the ideal life for the developer who builds for the joy of expression and who is committed to the long tradition of historic craftsmanship. He currently owns 150 rental units and the 2500 square feet of commercial rental space. He has 10 apartment units under construction now, with plans to build another 3000 s.f. of commercial space in the near future.
The years of commitment have put Dan in the position to be able to enjoy his success. He travels, reads, and sketches - looking for inspiration. Dan builds continually more expressive and exuberant buildings. He experiments freely and lives with his successes and learns from his mistakes. He is leaving a legacy that will endure far into the future. For some, it just can’t get any better than this.