FWD 2 ABC Expansion Purchase | HerbalEGram | March 2020

HerbalEGram: Volume 17, Issue 3, March 2020

ABC Launches Expansion Plan with Purchase of Neighboring Property


By Hannah Bauman

On February 24, 2020, the American Botanical Council (ABC) closed on the purchase of a residential property adjacent to the historic 2.5-acre Case Mill Homestead that has served as the nonprofit’s headquarters since 1998. This investment marks the beginning of an expansion period for ABC as it looks to the future.

The existing homestead was once part of a 450-acre series of land grants in the 1840s. It includes the original three-story building and carriage house from 1853, an annex, and grounds that have provided a home for ABC’s herbal library, an open-air classroom for visitors, public meeting spaces, office space for employees, herbal themed gardens, and much more. Since purchasing the property in 1997, ABC has renovated and restored the buildings, created more than 20 herb demonstration garden beds, and added a greenhouse and annex building. ABC also installed a rainwater capture system and adheres to organic land management principles, along with other sustainable practices.

Now, with the purchase of the property on Walnut Hills Drive on its northwest property line, ABC has the opportunity to re-knit a small piece of the original land grant back together to make ABC’s vision and mission for the future a reality.

The Walnut Hills property, which consists of a third-acre site with a three-bedroom, two-bathroom, 1,700-square-foot house, went on the market on January 3, 2020. In this northeast Austin neighborhood about five miles from downtown, many homeowners are long-time residents, and homes generally do not go on the market often. Additionally, the competitive Austin real estate market means that when an opportunity arises, it does not stay for long.

ABC Founder and Executive Director Mark Blumenthal recognized the opportunity for ABC to expand its footprint and make a solid real estate investment, and the need to move quickly, but he needed permission from ABC’s Board of Trustees. In 2016, a property adjacent to ABC’s northeastern property line went on the market, but at that time, the board declined to make the purchase. This time, though, the board agreed to the investment, with a few conditions: primarily that the property must be able to produce a modest positive cash flow for ABC until the loan is paid off. Because the property is zoned for residential use only, it will serve as a short-to-medium-term rental until ABC can petition the city for a change to commercial zoning.

Rick Kingston, PharmD, CSPI, chairman of the ABC Board of Trustees, endorsed the move. “The acquisition of the Walnut Hills property provides ABC with a tangible asset that will help us expand the ABC campus to meet the growing needs of our community and organization,” he wrote (email, March 9, 2020).

Holly Shimizu, former executive director of the United States Botanic Garden and member of the ABC Board of Trustees, was also enthusiastic. “The purchase of the Walnut Hills property is an important step for ABC,” she wrote (email, March 9, 2020). “Given the current market, it is a strong financial investment that also provides potential opportunities as ABC strategically plans its path forward.”

With the board’s endorsement, Blumenthal approached several close friends of the organization for donations. The first one arrived on January 10, 2020. Inspired by the positive feedback he received, he and Denise Meikel, ABC’s development director, devised a fundraising effort that would invite all ABC members and registered users of ABC’s website to support the effort. The initial donations, along with ABC’s existing legacy fund, provided a significant down payment that allowed ABC to meet the seller’s deadline and purchase the property while leaving the organization with a manageable loan note.

Though he moved quickly, Blumenthal gave the matter serious thought, not only about what could happen for ABC with the property, but what might happen without it. “When I first learned that our long-time neighbor JJ Jenkins was placing his house on the market, I believed it was essential that ABC do whatever possible to ensure that we would be the new owners,” he said (oral communication, March 5, 2020). “First, I saw the house as an excellent way to expand ABC physically, as well as our nonprofit mission and activities. Second, I felt compelled to protect the boundaries of our historic and much-beloved Case Mill Homestead. We did not want an owner or tenant who might spray pesticides that could ‘drift’ into our organic gardens. And third, with the Austin real estate market booming like it has been for the past few decades, I realized that it is also a good short- and long-term investment for ABC.”

The previous opportunity to purchase the property on ABC’s northeastern perimeter on Betty Cook Drive, which is directly behind the Walnut Hills property, was not approved by the board due to an unclear plan for its use, which also would be dependent on zoning changes. However, Blumenthal privately arranged for his stepson to purchase the property, with an agreement that ABC might purchase it in the future. Combined, the Betty Cook and Walnut Hills properties would add another two-thirds of an acre and two buildings to the existing homestead (see aerial photo).

Satellite image with added notation showing the original ABC property, the Walnut Hills purchase to the northwest, and the Betty Cook property to the northeast

ABC is still seeking funds to completely pay off the Walnut Hills property note. By paying off the loan on the property, proceeds from renting the property in the short-term could be funneled into ABC operations to further enhance the organization’s research and educational mission and projects.

As for the future of the Walnut Hills property and perhaps the Betty Cook property, the ABC board and staff members have many ideas. Once paid off, the Walnut Hills property might provide housing for visiting interns, guests, ABC staff, or invited lecturers. After a zoning change, it could serve as an expansion of ABC’s library or extra classrooms for staff and local educators. Regardless, ABC staff envisions uses that will further the herbal outreach, education, and research that form the core of ABC’s nonprofit mission.

To donate and help ABC achieve its vision of having the resources to completely pay off the Walnut Hills Drive property, please click here. All contributions will be gratefully received!