Park Place reopens: Two years after tornado devastates complex, first remodeled units available to rent

Sept. 27--More than 500 people were displaced overnight on Aug. 24, 2016, when a tornado blasted through Park Place Apartments, leaving four of the buildings in shambles.

Soon, the city condemned the entire 250-unit complex because the buildings not directly hit by the tornado had roof damage and other structural issues.

Park Place owner Gabriel Naranjo said it was devastating to see the destruction, but it was even more painful to watch all the tenants, some of whom had lived there for decades, pack up and leave.

"It created an absolute nightmare," he said. "I was here crying seeing all my residents go, but they didn't want to and had nowhere to go."

But now, more than two years after the storm, parts of Park Place are reopening as completely remodeled units that have given the complex a brand-new face.

Last week, the 34 one-bedroom units in the A building, which was one of the hardest hit by the tornado, received its certificate of occupancy, which allowed residents to start moving in immediately.

But for tenants who lived there before the storm, the units will be unrecognizable.

Property Manager Pam Reed said the kitchen walls have all been removed to give the units a more open, spacious feel. All the appliances are stainless or black steel. There are new cabinets, bathrooms and flooring.

Each unit has a high-efficiency heating and cooling unit that will more than halve residents' electricity bill compared to the old units. The apartments in the A building will also have their own in-house washer and dryer.

Reed said rental rates will run from $800 to $850 a month, but they are offering a $50 monthly discount as an opening sign-on bonus. Rates include water, sewage and trash. Residents pay for electricity.

Soon, the B building will also reopen as a totally remodeled complex offering 32 two-bedroom units. Reed said the units should be available to rent by mid-October.

Naranjo said it's hard to believe it's taken two years to finally get one of the buildings back open, but dealing with insurance and construction timelines have slowed down the project.

"This has taken much longer than I thought, and it's costing me a lot of money to renovate, considering it's been two years with no income," he said.

Once the entire 250-unit complex reopens sometime next year, Naranjo will have sunk just under $20 million into the remodel. He said it's a major investment, and one that many would consider to be a terrible investment. That's because the apartments aren't nearly worth what he's putting in to them, he said.

"From a business point of view, this doesn't make any sense at all," he said. " ... This complex would not be worth $20 million if I sold it."

But Park Place has become more than just a business venture for Naranjo. For him, reopening is a way to say thank you to the residents, police officers, firefighters and others who responded to the complex after the tornado.

"I have to say thanks to the police and the people of Kokomo who helped us," he said. "The police were here for us, and the people helped our residents move out and clean up."

The housing situation in Kokomo has shifted dramatically in the last two years. A slew of new downtown developments are bringing more apartment units to the city, and other housing developments are going up throughout the area.

That means attracting tenants to Park Place could be a challenge, considering all new options for renters. But Naranjo said he's not worried. He said he welcomes the competition.

"I love competition," he said. "I'm a tough cookie when it comes to competition. We are going to be as good as the best in town, if not better. My goal is to have the best apartment complex in town, but that doesn't mean we're going to be the most expensive."

Reed said with a new housing game in Kokomo, they are planning a new approach to some of their units. She said they will offer short-term, one-month leases. Sometime down the road, they also plan to offer apartments through the explosively popular website Airbnb, which allows people to rent out their homes or rooms as lodging for as short as a one-night stay.

Reed said so far, a handful of people have indicated they will rent units at Park Place. Five of those are former tenants who were forced out after the tornado. The first resident moved in on Saturday.

Naranjo, who lives in New Jersey, spent last week in Kokomo helping oversee the reopening of his apartment complex. He said when he's in town, it feels like a kind of second home, considering all the people he knows here.

Now, he's happy to offer another housing option to the city he's invested in for more than a decade, including creating a scholarship fund for students at Indiana University Kokomo.

"Here, I know the people and the people know me," Naranjo said. "I have an attachment to this town. If I took this money and went somewhere else, I'd have to start from scratch. Here, I have everything, and I feel myself in debt to the people of Kokomo."

Carson Gerber can be reached at 765-854-6739, [email protected] or on Twitter @carsongerber1.

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