Jim Nichols has wrangled Springfield’s white elephant.
After sitting abandoned on the northwest corner of the square for decades, construction officially began on the Heer’s building this summer.
Nichols’ Lee’s Summit-based Dalmark Development Group LLC took on the project in late 2013 and plans to complete construction in September for the building’s 100th anniversary.
Co-owner of Heer’s Luxury Living LLC, Nichols’ $15.7 million renovation is funded through a combination of property tax abatements on new improvements, federal historic preservation tax credits, conventional debt, private equity and a $750,000 small-business loan through the city.
But why tackle arguably the Queen City’s biggest eyesore? Nichols says he couldn’t believe someone else hadn’t done it already.
“My kids went to MSU and I would drive around this great square and think what an opportunity that is for somebody,” he says, adding the building has great bones. “Over a six-year span of visiting, I kept seeing it and kept seeing it, so I dug into it. I knew there had to be a story there.
“I talked to past owners, who had their obvious problems, and decided to go for it.”
Heer’s Luxury Living plans to turn the building into a mix of 80 apartments, first-floor commercial space and luxury lofts on the upper floors. Nichols says the project currently is on track, but if he has his way, it will be done at least a month early. He already has 75 people on the apartment wait list, with new calls each day.
“This community inspired me,” he says. “Springfield is an awesome place to do business.”
This isn’t Nichols’ first time at the redevelopment rodeo. A 25-year property manager and developer, Nichols’ development portfolio through Dalmark exceeds $100 million and includes the $7.7 million renovation of the Hyde Park Hotel in midtown Kansas City. But for every large project, he has a small one, and for every new project, he has an old one.
“Real estate runs in cycles,” he says. “To sustain the median, you need a mix of new and historical, you need to be fluid and flexible.”
The philosophy has paid off for the family-run business. In 2014, the more than 70-employee Dalmark managed 2,000 units spread across 23 properties and conducted about $60 million in real estate investments, up from roughly $45 million to $50 million in preceding years.
Nichols learned the ropes early in his home state of Oklahoma, starting out as a groundskeeper for the Sooner State’s largest apartment complex at the time and working up to manager. He then tackled development for Tulsa-based American Management, handling U.S. Department of Housing and Urban Development contacts in Dallas. “I spent eight years there, mostly on multifamily, taking over troubled assets and trying to stabilize them for disposal,” he says. “I loved the analytical side. It opened my eyes to how not to develop.”[[In-content Ad]]
