Downtown redevelopment surges onward

Loft apartments are a recurring theme of developers' plans

by Eric Olson

SBJ Reporter

eolson@sbj.net

Springfield Center City Coordinator Vern Morgan once said 2004 would be a banner year for downtown. Redevelopment activity in the first two months of the year appears to be proving him right.

"It's looking that way," he said. "There is a lot of construction, a lot of good things going on" in the downtown area.

A new round of vacant building acquisitions is fueling the development of loft apartments. Morgan estimates that more than 100 new lofts are under way or planned for downtown.

Veteran loft developer Jason Murray welcomes competition, but hopes the timing doesn't glut the market.

"It should bring a lot more people downtown and should help the retail businesses and the restaurants," said Murray, who is adding 28 lofts at 505 N. Jefferson. "As long as you don't have a whole bunch of units dropped on the market at once. If it's gradual as it has been that's definitely sustainable."

Downtown players such as Murray, Dan Scott, who is creating about 15 lofts in the former Marquette Hotel at Jefferson and Walnut, and Craig Wagoner, who's developing Walnut Street's historic Seville Hotel into residential and commercial space, are deep into redevelopment projects. Other developers are catching on.

324 Park Central West

The Busy Bee building at 324 Park Central West promises to become a hive of activity under its new ownership. Tom Dornan and wife Nancy Brown Dornan are lending their historic renovation expertise to turn the four-story building into loft apartments with hopes of creating retail space on the first floor.

The Dornans bought into the ownership structure, named Busy Bee Development LLC, with Reginald Cordry, a Kansas City real estate appraiser who previously owned the property with Bob McCroskey and Dennis Radford-Kapp. Development plans have been stop-and-go since 2000.

"It's been sitting there going to waste way too long," Tom Dornan said. "I think everybody wants to see the Busy Bee developed."

The new ownership group plans to spend $1 million developing lofts first and letting the market decide the type of ground-floor tenant, Dornan added.

Nancy Brown Dornan, perhaps best known for developing Walnut Street Inn bed and breakfast, has taken on several historic preservation projects along East and West Walnut Street.

"Nancy is the visionary, and I'm the nuts and bolts guy," Dornan said. According to the deal, the Dornans will handle renovations and will not get paid for their work until the project is profitable.

505 N. Jefferson

Murray is among those anxious to see Busy Bee redeveloped. "That's a great building. That will be great for this area," he said.

Murray owns several loft apartments in the Campbell and College area, and is a proponent of redeveloping vacant buildings. His latest project, located at Jefferson and Phelps, is The Stoveworks Lofts in a building originally constructed for Woods-Evertz Stove Co.

Murray expects his 28 lofts there to be complete by June, giving him a total of 60 downtown lofts. He is pre-leasing units and said he has already signed a few tenants. Lease rates are $525 for one-bedroom units and $700 for two-bedroom units, he said.

Renovation costs are expected to be $1.75 million for the 31,000-square-foot structure. Large beams, wood columns and exposed brick are pronounced throughout, he said.

330 E. Walnut

Grey Oaks Development LLC partners Mike and Steve Lollis and Larry Gebhart acquired 330 E. Walnut last August for $475,000. Grey Oaks purchased the building from media company Radio 2000, which is one of the building's tenants.

The property previously was a Guaranty Federal Bank.

Grey Oaks is getting into the downtown redevelopment game for one reason: "The amount of growth downtown," Mike Lollis said.

Citing a need for parking along Walnut Street, Grey Oaks Development plans to construct a nearly $2 million, 60-space parking garage with 22 apartment units above, immediately to the west of the building.

"There's a big demand for parking down there between what Dan Scott's doing and what Craig (Wagoner) is doing," Lollis said. "I don't think there will be any problem finding people to rent a parking spot."

That's phase one. Phase two adds three new floors for apartments on top of the original structure. Grey Oaks Development had originally planned for the addition as a first phase, but structural analysis and potential disruption to Radio 2000 station operations discouraged immediate plans.

"It may be there in 2006 or something like that," Lollis said. Radio 2000's lease runs through 2008.

The first phase apartments and parking garage are scheduled for summer 2005 completion, Lollis said.

331 E. Water

Development firm Recess Properties is rehabbing 331 E. Water, previously occupied by Mulhollan Furniture and Springfield Storefront School. It acquired the property Feb. 18 from Mulhollan Co.'s major stockholder, Ruth Kelley, for an undisclosed amount.

This is the second time Recess has renovated a property previously used by the R-XII School District. The first, the former McDaniel School at 237 S. Florence, is now occupied by Bryan College. Partner Matthew Miller said the development firm has no plans to stop there.

"We're in the midst of trying to buy other buildings downtown," Miller said, though he would not say which ones. "We're definitely players downtown. There's not a whole lot left to be bought downtown, but there's still some opportunities."

Being one of the larger vacant structures at 40,000 square feet, as many as 30 lofts are planned for the Mulhollan building's top two floors. Recess Properties is seeking tenants for 10,000 square feet on the ground level.

"If you had something that could be an additional draw to the area it'd be a real homerun," Miller said, citing Springfield History Museum or Community Foundation of the Ozarks as ideal tenants for the building, which is located across the street from Founders Park.

"I'd have to think we're going to really change the landscape of that area and help join Jordan Valley Park with downtown. That's certainly why we like the location. I think that this development will go a long way to pull the two together and blur that line."

Kelley has given her stamp of approval. "I'm very excited about what these guys are going to do," she said.

Kelley and her husband John opened the furniture store in 1956. It closed in 1998.

420 S. Campbell

Christian Foundation's downtown property, 420 S. Campbell, sold Jan. 15 to Gregg-Wise Properties LLC for nearly $275,000, according to Christian Foundation President Price Brown. The property comprises two buildings, a 7,000-square-foot structure on the corner of Campbell and Pershing and 1,250 square feet of space in a second building to the rear.

Columbia-based Tropical Liqueurs, a bar and restaurant, will occupy the smaller building. Gregg-Wise Properties is renovating the space for their new tenant.

"We're building on a whole new addition with an outdoor patio," said Alan Dodds, partner of Tropical Liqueurs. Remodeling will create a Pershing Street entrance, Dodds added.

Tropical Liqueurs, started by Dodds' parents in 1985, serves frozen alcoholic beverages and lunch fare. Dodds and business partner John Russell run two locales in Columbia.

Dodds became aware of the space and activity downtown from Coldwell Banker Vanguard Realtor Jacob Krizan and a few "fact-finding missions" in Springfield.

"That growth in downtown right now is one of the main things that attracted us," Dodds said by telephone from Columbia. "It seemed like a real good area to get into it. I think every time I come down there I see something new opened up."

Dodds plans to open in May.