Commercial Building Renovations Catch On

Renovating an old building can cost twice as much as tearing it down and building a new one in its place. So why do developers do it?

“The decision on whether to use an old building and how to use it is an economical one as well as a historical one,” said architect Gary Ryel, a principal with Hight-Jackson Associates P.A. in Rogers. “There are a lot of unknowns. Utility and structural problems can cost extra money, and there’s no way to know it on the front end.”

Joe Lyons, owner of Innovative Construction Inc. in Fort Smith, said the renovation market could easily be $5 million a year in Fort Smith and Northwest Arkansas. He said that number will only grow because of increased interest in historic downtown Fort Smith.

1870s Restoration

Lyons has done many renovations allover the southern part of the U.S. So when lawyer Edwin “Win” Dooley came to him about renovating his building in downtown Fort Smith, Lyons agreed to take on the project.

Dooley’s 12,000-SF building, built in the 1870s, made many contractors turn and run before Lyons signed on. There was a lot of renovation to do to achieve Dooley’s idea of turning the old brick structure into a building that he hopes to house a coffee shop, Italian restaurant and office spaces.

“We’ll do anything that others won’t do,” Lyons said.

That’s because Dooley, along with his sister and co-owner Linda Gurlen, want to restore the building not only for the historic significance but because it has been in their family for three generations.

Their father and grandfather had a chemical operation plant there where they made soap in the late 1960s. That operation shut down in 1994, and Dooley moved his law office, also located in the building, out in 1993. Since then it has only been a warehouse storing the old chemical equipment, along with other antiques from previous owners.

Although there weren’t many surprises when Lyons and his team started renovating the building in July, he said it’s going to cost around $500,000 for the renovation, which would be about 50 percent more than a new building with the same dimensions would cost. That’s because Dooley wants everything restored to its natural glory.

“We want it as historically accurate as we can get given the building codes,” Dooley said.

That means a lot of hands-on labor. Although the building is in excellent shape considering its age, Lyons said, a large cost of the restoration will be from finding and manufacturing materials to match the original building materials.

Lyons said he believes he found some stone that matches the 24-inch thick stone wall that lines the center of the basement, which has four arch entry-ways that lead to each side of the building. Dooley said the original rock was probably from a Hackett quarry in the late 19th century.

They were also able to use most of the original 2-by-4-inch Douglas fir timbers for the top flooring. But a large cost of the restoration will also be getting more Douglas fir timbers from California and having them specially cut down to the exact dimension of 2-by-4, instead of the slightly smaller dimensions lumber mills cut timber today.

There are barely any cracks visible in the 13-inch thick Chicago-style bricks that make up the building’s exterior walls. The brick is termed Chicago-style because of the many different brick colors like orange, red and black. Country-style is what most buildings have today.

During the excavation, Lyons found bullets in the wood flooring on the second floor, old whiskey bottles and a gas-powered machine (convert-ed to electric) that weighed and sewed feed sacks all in one step. Lyons said he will find some way to incorporate some of the antiques found in the building.

Dooley is excited about the renovation, which should be complete by the end of the year. The building, as with most others downtown, is on the National Register of Historic Places, said Jayne Hughes, director of downtown development in Fort Smith. That gives Dooley and other developers large tax credits.

Lyons said he believes the project is economically feasible for the area because it is near the river and is part of a historic downtown. If Dooley decided to sell the building after he finishes the restoration, Lyons said he should receive more money because of its historic significance.

Other renovations are under way in downtown Fort Smith, but Lyons said it’s just taking time because other developers are sitting back waiting on someone else to do it.

“It’s only going to grow,” Lyons said.

Historic Decisions

Northwest Arkansas architects and developers are watching Fort Smith’s downtown development because of the new interest in renovation of old buildings, but the process is nothing new to the area. It’s something that most owners have had to consider.

Ryel said about 5 percent of the total construction market in Northwest Arkansas comes from restoration. He said there is usually one good restoration project that comes along every year. Schools are about 10 percent of his company’s restoration projects.

Many of the restoration projects that Ryel has done are urban, brick, stone and concrete from the early 20th century. He said many of the late 19th century buildings are log and timber, and if they had a bad roof for a while, they’re just too rot-ten to work with.

Of course, there have been some “no-brainers,” Ryel said. In 1998, Ryel completed the old Springdale High School restoration project, or as he calls it, “rehab and reuse.” The project, which ended up costing $3 million after about $500,000was spent on landscaping, was restored for use by the Springdale School District administration. It was an important part of the city’s history.

“At that time, you probably could have spent the same amount of money and had a new building,” Ryel said. “So, I’d say it was a good alternative for them because of the fact they got the space they needed and the community got a historical landmark.”

For other projects, like the1949 Compton house in Bentonville, developers are willing to spend more to keep the historic significance. Ryel said that it probably cost about 20 percent more to restore the 5,000-SF Compton house than to build anew facility to serve the same purpose, although he wouldn’t divulge exactly how much was spent on the project. But the 7 acres of gardens and the quality of structure proved to be valuable resources to the project.

“If you throw enough money at a project, sure you can save it,” Ryel said.

However, many projects just aren’t worth the time and money.

The Goldman Hotel in Fort Smith proved to be unsalvageable, even though many developers tried to restore it. The hotel, built in 1911, was once a popular spot for society’s uppercrust, including actress Susan Hayward, comedian Bob Burns and baseball greats Dizzy Dean and Mickey Mantle.

After sitting vacant for 20 years, it became more valuable as a church parking lot and was demolished in 1994.