Colorado Real Estate Journal - August 17, 2016
The historic Fruitdale building, designed by famed architect Temple Buell, is poised to get a new lease on life. Fruitdale originally was built more than 130 years ago as a school building. It was destroyed in a fire and replaced by the Buell-designed building in the 1920s. Next year, if all goes as planned, what is now called Fruitdale Lofts will provide needed workforce and affordable rental units. Hartman Ely Investments is under contract with the building’s owner, the Wheat Ridge Housing Authority, to convert the building at 10803 W. 44th Ave. into rental units. Five of the apartments will be income-restricted units. But even the market-rate units are expected to be affordable, according to Jim Hartman, manager of HEI. Converting the building into rental units also will preserve an important part of the city’s history. “This restored landmark will create the first historic loft apartments in Wheat Ridge while respecting the building's important past role as a community education facility,” Hartman said. Units in the Fruitdale Lofts will range from 550 square feet to slightly more than 1,000 sf. Fruitdale Lofts will include one-, two-, and three-bedroom floor plans in the main school building, as well as the caretaker’s cottage. In addition to historic renovations, HEI also focuses on renewable energy and sustainability and Fruitdale Lofts will benefit from HEI’s expertise. The building will include a large solar power system. Xcel Energy has approved about $150,000 in solar power production subsidies over 20 years. The building’s solar power system also qualifies the property for approximately $100,000 in solar tax credits. Other sustainable features will include energy/water-efficient systems and a free electric vehicle charging system. Jefferson County has conditionally committed to supporting the project with $680,000 in federal HOME funds. In addition, recently approved historic preservation tax credits include $1 million in state credits and about $925,000 in federal credits. Other possible grant opportunities are being explored as well as a traditional bank loan and developer equity. The existing bleak parking lot will be transformed into a heavily landscaped, low-water-use parking area with many fruit trees to recall Fruitdale’s past. HEI also will offer periodic public education tours on the property’s sustainable features to continue Fruitdale’s long-term focus on community education. HEI has extensive experience in redeveloping and repurposing historic properties. Some of its notable past projects have included Hangar 2 and the Steam Plant Lofts at Lowry. Although Hartman has practiced as an architect, HEI has hired The Abo Group as the architect of record. Palace Construction will be the general contractor. “They are very experienced with historic renovation projects and Ron (Abo) lives in Wheat Ridge,” Hartman noted. HEI is the design architect as well as the developer and long-term property owner. Hartman said the $5.5 million public-private partnership would not be possible without the help of various government and nonprofit entities. “HEI is honored to be the city's private-sector partner for this very challenging redevelopment,” Hartman said. “The Wheat Ridge Housing Authority, city leaders and many other people deserve lots of credit for being part of the team effort to save this important building,” Hartman said. Ken Johnstone, community development director for the city of Wheat Ridge, said the Fruitdale Lofts will be a “great fit” for the city. “We feel lucky to have such unique housing with a strong history coming to Wheat Ridge,” Johnstone said. The redevelopment of the Fruitdale Lofts recently received a boost when History Colorado and the National Park Service approved plans for the restoration of the building, making the project eligible for state and federal historic preservation tax credits. This approval was a critical milestone, as the tax credits are a major component of the public-private financing plan, according to the city. The WHRA investigated a number of redevelopment options before HEI came on board. When a deal to sell it to a school collapsed, the WHRA feared no re-use option would be financially feasible. That is, until HEI and other partners stepped up to the plate. The Fruitdale School property was deeded to the Jefferson County School District in 1883. Hartman has a personal connection to Buell, who died at age 94 in 1990. Hartman met Buell, best known for designing the original Cherry Creek Shopping Center and the Paramount Theater, in the mid-1980s. “He was 90 and I was 25 and working on the Paramount Theater, so I took Temple to lunch at a restaurant at the Odd Fellows Hall that I had designed,” Hartman recalled. “I was a young architect meeting with the old master. He took me to his office and we talked about architecture and development,” Hartman said.