At 3 Melville Ave., Kava Realty’s Johnny Ho has succeeded in completing a masterpiece of renovation and new construction in replacing a crumbling structure that was a blight on one of Dorchester’s premier thoroughfares. But all the work comes with a financial asterisk.

The property at 3 Melville Ave., once a nursing home, was left vacant for years after the home’s operators moved out during which time a burst sprinkler system caused severe flood damage to the building with its nice turrets and other architectural highlights. About six or seven years ago, a developer proposed demolishing the home and replacing it with a 12-unit building. After long discussions with neighbors, that plan morphed into the current six units, but the developer was not up to the task and five years ago he sold it to Johnny Ho and his partners.

A farmer’s sink and quartz countertops are striking features of the kitchens in each unit. Seth Daniel photos

What was supposed to be a $1 million project turned into a $2.5 million renovation and new construction development that was hampered by the inroads of Covid-19, supply chain issues, historic renovation considerations, investors backing out, and the expensive costs of taking too much time.
Now, with three units sold or under agreement, and the others actively on the market, Ho said he is happy with how the project turned out, even if it hasn’t been a complete financial success.

“Many people tried to do this, and many people didn’t even want to try it because it wouldn’t amount to any profit,” he said during a tour of the property last week. “I live in the neighborhood, and I know the history of the property. First, I wanted to try it because I want my neighborhood to look nice. It was sitting here for years, and I didn’t want it to sit here for another five years. I did it and finished it, but on profits, it wasn’t successful. I just want to recoup my costs and break even. I only lost my time, but five years of it.”

So far, Ho has sold one unit with a private deck for $916,000, and a second for $745,000. A third is under agreement for $700,000, he said, and the remaining three units are priced between $700,000 and $800,000.

Natural light from large windows fills the bedroom of this first-floor unit.

The living room and kitchen in one of the first-floor units, including the electric fireplace on the left – a feature of all six units in the project.

Each unit includes two spacious bedrooms with two bathrooms. Kitchens feature farmer’s sinks and quartz countertops with high-end appliances. Added touches include high ceilings (10.5 feet on the first floor) and electric fireplaces in each unit. There are laundry facilities inside each unit, and the building has central air conditioning, as well as 10 parking spaces in the back.

Over the last 60 months, 18 months were spent on planning and permits. The remainder involved dealing with spiraling construction costs and supply chain jams. For example, quotes for the required slate roof, copper flashings, and copper gutters came in far over budget and put everything in financial peril. A friend who does similar work on Beacon Hill homes was able to cut his price in half, but only if Ho was willing to allow him to work on it over a two-year period.

Another issue was the curved, tempered glass that was part of the historic front of the home. Supply chain problems were the key obstacle there. First, a contract with an Ohio company fizzled out after Ho waited seven months for them to deliver. He was able to find a company in China that could manufacture and deliver the specialty glass panels, but they cost $6,800 each and he needed 20 of them. He had no choice but to go forward.

Things like that, he said, added up and as problems mounted, his investing partners wanted out. While they didn’t withdraw fully, they decided not to put any more money into the project. Ho said he was at a crossroads, but decided he was going to finish this project no matter what happened.

“For them, that was it; that left me to have to go get the money from an equity loan and try to get money from friends to keep it going,” he said. “I wasn’t going to quit this project, but it was very hard to keep it going. We had to stop during the pandemic…My partner told me…if I didn’t want to continue on my own, just sell it for a loss and move on. I knew if I did that, it would just sit another five years vacant, so I decided to see it out.”

Despite those trials, don’t expect to see corners involving quality cut. The property has been returned to its former glory, with the outside now having clean lines and sharp edges, with modern conveniences inside.

Several neighbors, noting the completion of the project, have said they felt it was a win for the area, as the original plan was for demolition of the old home and construction of something less cohesive. They said the house is on one of the largest lots of land on Melville Avenue, so the pressure to develop something bigger was palpable.

Having done something that improves the neighborhood and puts a prominent vacant building back to good use, Ho said, “I’m very happy, and if I don’t end up making any money, I’m still happy with the project,” he said. “I’m in the neighborhood and I love the historic nature of it…You always learn something new in all of these projects. This was definitely a learning curve…Now I have very good experience with historic properties, and I think that will help if I were to do something again.”