Published online on Wednesday, May. 20, 2009

By Sanford Nax / The Fresno Bee

Fresno has the Tower District, Old Fig and River Park. Now, people can add SoTow to that list.

MARK CROSSE / THE FRESNO BEE

“Fulton Street will be like the next Van Ness,” said Terance Frazier of TFS Investments, which bought the 40 one-bedroom and studio apartments and 10 commercial spaces at and near 608 N. Fulton St. “They are the two arms between the Tower District, and this is the heart between them.”

The property once housed a dance studio, minimart andother businesses. The apartments are atop and behind the storefonts. TFS Investments bought them out of foreclosure for close to $1 million and expects to spend $500,000 to $1 million on rehabilitation. The storefronts were vacant, but about 11 families remain in the apartments.Those families will be relocated to other apartments during the renovation, which is expected to take up to five months.

People can follow the progress through a blog at www.fultonia.com.

None of the apartments has air conditioning or heating units, and many were in serious disrepair.  “Pest infestations, bad wiring, leaky plumbing. … We’ll be gutting it back to the studs,” said Eric D. Tienken of Tyco General Inc., the contractor.

Joe Botello is glad to hear that. An unemployed construction worker, he is living with his sister in one of the apartments until he gets back on his feet. “It was ugly,” he said of having to survive last weekend’s heat with only a portable air conditioner. The remodeling, he said, “will make a big difference.” Botello said his sister has the option of returning to her apartment after the remodeling. “She hasn’t decided what to do,” he said.

The new units will have new appliances and cabinets, wood floors, granite countertops, energy-efficient windows, cool roof technology and possibly solar panels.  Tienken said the renovation will be costly. “We’re doing things that don’t make financial sense,” he said.  But the developers hope to offset the expense with help from suppliers and government officials, he said. Already, Lowe’s has stepped up with discounts on materials.

The goal is to provide high-quality housing without raising rents. “It’s not about the money you earn. It’s about other people. We’ll figure out a way to keep the low and moderate income in this building,” Frazier said. One way to do that is to get social services, government agencies or private business to lease the storefronts, creating revenue that enables TFS to cut rents.

The Fresno Housing Authorities also will look for low-interest loans, grants and other ways to help defray the cost. Preston Prince, executive director of the Housing Authorities, said his agency is looking for ways to better work with private developers. “We want to learn from the private sector and bring our mission to that,” he said.

Fultonia is another example of a private developer taking on a revitalization role in or near the urban core.  Frazier joins Reza Assemi, who is building Fulton Plaza at 1901 N. Fulton.

It also will have housing and commercial on the same site.”One storefront, one housing development, one block at a time,” Sterling said. “Success depends upon local investors.”