Casco Viejo’s transformation over the past two decades has been extraordinarily profitable and socially complicated. The interaction of residents, entrepreneurs, investors, and real estate developers within a geographically confined neighborhood with historical importance creates unique problems and solutions. Conservatorio has created a business model that recognizes the complex interaction between the multiple stakeholders and leverages social capital to arise at mutually beneficial outcomes.

With new investment in the area, there is a risk of displacing long-time residents. Furthermore, favorable developments and new businesses require access to a skilled workforce. Conservatorio addresses these challenges in several ways. For example, local women receive training and knowledge within organized educational programs. Additionally, Conservatorio sponsors an entrepreneurship program that allows residents to develop their business ideas into profitable ventures within the neighborhood. To provide housing to residents susceptible to displacement, both affordable and market-rate units are developed in a balanced manner.

The future of real estate development in historic districts should consider long-term holistic development and investment strategies. In doing so, financial and social risk can be minimized. Conservatorio’s model shows how this approach can achieve success in balancing the return on investment and creating a sustainable neighborhood for existing and future residents.