Fear not, says real estate agent, sign says 'commercial' but lot still 'residential'

Like some 67,000 other Springfield drivers, I routinely navigate the intersection of South National Avenue and East Sunshine Street.

That's when I take note of the large white house that has always seemed a bit too close to the never-ending parade of traffic.

It's catty-corner from Mercy Hospital and across Sunshine from the home and business of B.J. Marsh, owner of Marsh Travel. 

But why am I telling you this? You probably drive by it, too. The address is 1755 S. National Ave.

The most recent sign says the house is  "available." The real estate agent is JeniferGrove.

But what caught my interest is that it also says "KW Commercial." (KW stands for Keller Williams.)  It does not say "KW Residential."

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Well, I thought, if that house is commercial property, that's news.

Those living in the stately homes on the west side of South National Avenue, north of East Sunshine Street, have fought to keep this lot residential, despite the astronomical value it would have as a commercial property.

Their reasoning is that the dam holding back a flood of development would be breached with as much as one commercial property in this longtime residential area.

I agree. If you have a row of houses and one becomes famously successful as a commercial enterprise, it places tremendous economic pressure for those remaining homes to become commercial enterprises, as well.

So I called Grove.

Fear not, she says. The lot is still zoned residential and the owner knows that and is looking to either rent it to tenants or sell it as a home.

She explained to me why the sign says "commercial" and tells me many others have asked the same question.

She works for the commercial division of Keller Williams. The sign carries her logo. 

I ask: Doesn't Keller Williams have a residential division?

Yes, of course. But the reason she has the listing is because she handles property that might be income-producing, which includes residential rentals.

Think of it this way, she tells: You walk into a bank to make a deposit. It's busy, so a commercial lender steps over to help you out with your deposit.

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The transaction is completed, everyone is happy, and it had nothing to do with getting a commercial loan, she says.

I tell Grove it seems like the house has been vacant for many years.

Actually, not that long, she says.

"It was occupied by a family that moved out a few months ago," she tells me.

The owner, Steve Plaster, is affiliated with a limited liability company called Precision Investments.

Precision Investments bought the house out of foreclosure for $278,336 in 2009, back when the national real estate market was lo, in the Valley of Death.

In 2016, Plaster wanted to sell it to Kathy Penrod.

Plaster said he was willing to sell it to her for what he considered the discounted price of $300,000. He said that in his view, the value of the house and property was $600,000.

In Plaster's view, he was willing to "donate" the $300,000 difference to Penrod and her worthy cause.

Seems like a real estate challenge

Penrod wanted to transform the house into "Grandpa's Hospitality House."

In 2016, Penrod told my colleague Jackie Rehwald that she came up with the idea after spending six nights in a Mercy Hospital waiting room as her father was dying. Her plan was to offer low-cost overnight accommodations for people with a loved one in nearby Mercy Hospital.

Penrod would live in the house and ask those staying there for a $42-a-night donation.

(At the time, Zillow had the home's estimated value at $238,738. It was built in 1930, is two stories with five bedrooms, 2½ bathrooms and 4,410 square feet, according to the current Zillow listing.)

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Penrod and her mother, Marie Boyd, had created a nonprofit — Grandpa's Hospitality House — and sought donations from the public to buy the house from Plaster.

But the neighborhood once again organized to block any zoning change — including the requested change to a conditional use permit, which would have allowed Penrod to operate the hospitality house, but only for as long as she lived there and operated the business.

In June 2016, the City Council voted unanimously to deny the zoning change; the plan died.

Today, the house is listed for $499,900 and the estimated Zillow value is $377,472.

"He wants a commercial amount of money for a residential property," says Tom Muetzel, who owns the house immediately to the north.

Like me, Muetzel certainly had noticed the word "commercial" on the real estate sign. He was curious, too.

"They just had an open house there," he tells me.

In case there was doubt, Muetzel makes it clear: It's a residential neighborhood and that lot needs to stay residential, he says.

Which means Grove, the real estate agent, has what might be considered a challenge.

"As you know, the traffic count is very, very high," she tells me. "And being across the road from sirens and helicopters is a hurdle."

But on the bright said, she adds: "The home is beautiful and it has a lot of history."

Good luck. I hope she likes challenges.

These are the views of News-Leader columnist Steve Pokin, who has been at the paper seven years, and over his career has covered everything from courts and cops to features and fitness. He can be reached at 417-836-1253, spokin@gannett.com, on Twitter @stevepokinNL or by mail at 651 Boonville Ave., Springfield, MO 65806.