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In Fort Smith, Developers Eye $5M Revamp of Historic Ward-Garrison Building

3 min read

As demand for downtown housing increases in Fort Smith, two developers are mounting a $5 million renovation of the historic Ward-Garrison Building to create upscale apartments.

The 11-story building, at 523 Garrison Ave., was an office project when Greg Burrows purchased it in 2005. Burrows and his business partner, Randy Shock, presided over 90 percent occupancy “for a long time,” Burrows said, until a few years ago.

That’s when the building lost its anchor tenant. Since then, the building has been unable to reach a sustainable occupancy. 

Burrows’ plan now is to convert the top eight floors into 48 one-bedroom apartments and continue to use the third floor as office space. The first and second floors would be filled with new tenants and amenities for residents, he said.

Burrows said the crews should start demolition around March 1, and the entire project should be complete in January 2017. But some of the commercial spaces could be finished before the apartments are open, he said.

“In the last 10 years there have been several apartment projects that have been built in downtown Fort Smith that all maintain very high occupancy rates,” Burrows said. “This certainly has worked for other folks and I think the appetite for apartments in downtown Fort Smith much exceeds the supply.”

Rodney Ghan, principal broker at Ghan & Cooper Commercial Properties, has seen the demand for downtown housing first-hand.

“There is a demand and it’s been growing in the past five years, and I find that it seems to be the millennial age really,” Ghan said. “There are more empty nesters looking at downtown housing now but they may be looking to own rather than lease.”

Ghan said the Ivory House Lofts at 823 Garrison and the Luxury 3rd Street Apartments at 14 N. Third St. are two examples of historic buildings that now house apartments and were previously unoccupied. He’s also planning another project at 913 Rogers Ave. that will have four to five units.

Ghan said the next need downtown is more condos. 

Upscale Ideas

Burrows said the Ward-Garrison apartments will rent for $675 to $950 per month depending on the size and view. He called the plans “upscale.”

“We’ll have the same finishes that you would see in a custom home — cut stone floors, crown molding, upscale appliances, all that,” Burrows said. “We’re going to gut those upper eight floors to the original structure.”

Burrows thinks that demand for downtown housing will continue to increase. 

“I think the moving into downtown areas is a trend, but it’s not just in Fort Smith — it’s a trend in the region,” Burrows said. “Little Rock and North Little Rock have similar developments, so does Fayetteville.”

Deputy City Administrator Jeff Dingman also sees the trend and the growth that comes with it. He thinks Burrows’ endeavor will likely be successful. 

“We are experiencing some pretty significant growth with demand for housing downtown,” Dingman said. “[The Ward-Garrison apartments] will be competitively priced with the market.”

Burrows said he estimates construction will cost about $5 million. Because of the building’s history, state and federal historic tax credits available. Burrows said he’s working with the Arkansas Historic Preservation program, where a maximum of $125,000 in tax credits are available.

The national program has no cap but will be 20 percent of any dollars spent on a “qualified rehabilitation expense.”

“That’s basically going to mean restoring the exterior of the building, such as the windows, and most of the interior of the building,” Burrows said. “But for example, they don’t consider appliances a qualified expense.”

Burrows plans to use the first and second floors of the building for amenities and tenants that would appeal to residents. A coffee shop called Sacred Ground is already operating on part of the first floor, and Burrows said he would like to add retail and possibly a hair salon. 

On the second floor, the partners are seeking a neighborhood restaurant or pub. They also plan to use part of the space for a fitness center for residents.

The Ward-Garrison project occupies three addresses — 519, 521 and 523 Garrison Ave. — and comprise about 74,000 SF. The building’s first two floors stretch across all three addresses.

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