The hottest new market for local real estate magnates is… Lynchburg? You heard it right. That stodgy bastion of religious conservatism, home of Jerry Falwell, is poised for an urban renaissance. A pair of local builders have become major players in Lynchburg, saying the real estate market there is poised to make huge gains in the coming years.
“Charlottesville is still a good investment, but I’m not 100 percent sure the returns will be that high,” says Oliver Kuttner, who says he owns 21 buildings in Lynchburg. Kuttner says real estate markets go in cycles, and while Charlottesville sits atop a price peak, Lynchburg is on the upswing. “Lynchburg kind of died and got stuffy and old, and now it’s going to go in the opposite cycle,” he predicts. He claims that young creative types will be drawn to the town’s cheap prices and cool warehouse spaces.
Michael Gaffney, owner of Gaffney Homes and a major investor in Sonabank, is also representing in the big L. “The city government is great to work with,” says Gaffney. “They’ve done a great job of putting money into infrastructure.”
Gaffney and Kuttner are partners on some Lynchburg projects, including the purchase of the entire west side of the 700 block of Fifth Street. “Things are relatively inexpensive compared to almost everywhere else,” said Gaffney, who also purchased two 20-30 acre parcels he plans to turn into mixed-use developments.
Kuttner and Gaffney are gaga over Lynchburg’s spirit of accommodation. After Kuttner expressed interest in a Riverfront building that the city planned to demolish, they instead gave it to him for $1 with the stipulation that he put in a tenant within a specific time period.
“In Lynchburg, I have more of a free hand for what I want to do,” he said. “The town [doesn’t] get bogged down in the details. In Charlottesville…50 people have to agree before anything gets done.” —Jayson Whitehead
