Repurposing vacant commercial property could help combat sprawl, create affordable housing

When Hensley Beach Looking for an office for his home construction business in the summer of 2018, he found a former dental office on Merrimon Avenue that had been vacant for years.

“It had good bones, so the renovation didn’t require a lot of work,” recalls Hensley. “In order to get the desired location and make it financially feasible, we had to rent additional space.”

For this purpose, he rents an office to a local architect and built two residential units on the upper floor, which he rents out through Airbnb. Beach Hensley Homes owner says he was grateful he was a grandfather when the city put short-term rental restrictions on. “Otherwise I couldn’t afford this location,” he explains.

Hensley understands that some business owners don’t want to be on a busy thoroughfare, but complains about the overabundance of empty lots along Merrimon and other major corridors. Right next to his office is an empty fire station from 1927, which is still owned by the city. Hensley says he sees squatters there regularly.

Countless existing buildings of every shape and size stand empty throughout the city, many in a dilapidated condition after years without residents. Although Asheville is among the top 11 commercial real estate markets in the country according to the National Association of Realtors’ Q3 2021 Commercial Real Estate Metro Market Report, 26% of the commercial space currently available is vacant, including industrial, multi-family, retail and office properties.

Increase the pace

The 392-page Living Asheville Plan, a long-term development guide approved by the City Council in 2018, identifies “the need to balance conservation of the natural and built environment while accommodating population growth, and the need to Providing affordable new and diverse housing for the city’s residents. ”The city spent two years developing the plan and the same amount of time defining four zones of opportunity for future mixed-use development.

READY FOR A CHANGE: The Summit Church property in downtown Asheville is one of many potential locations for adaptive reuse. Photo by Linda Ray

Meanwhile, Asheville and the surrounding area continue to face significant development pressures and a lack of affordable housing – nonetheless, some of the city’s busiest corridors are lined with vacant properties that say “For Rent” or “For Sale”. For example, consider the block-length property on the corner of Merrimon and WT Weaver Boulevard. While the 1.1 acre property has its challenges, including its narrow shape and the adjoining creek, being a commercial real estate agent Karl Nelson from NAI Beverly-Hanks says it’s a prime location for privately owned college dormitories or a mix of apartment buildings and retail.

“Sure, it takes creativity and a certain loosening of the city’s codes,” admits Nelson. “But some of the buildings could even be repurposed now while the rest are being developed.” For this to work, the new construction would have to be taller than the current code allows, he says.

Even if the controversy continues a few blocks down over proposals to demolish houses and remove trees along Charlotte Street, the Merrimon site is ready to go. And further down the avenue is another block of old, vacant building in 1.3 acres on the corner of Sandon Drive. Jason Burk of Whitney Commercial Real Estate Services says the owner of the former dental office (now empty for more than 15 years) and the Subway store (empty for nearly two years) are ready to either lease or demolish the existing structures and the site for a new buyer or tenant to renovate.

“It’s really about what is financially more feasible for the investor,” says Burk. “But people love converted properties.”

Pay attention to the end result

When it’s practical, it’s almost always cheaper to reuse than to build from scratch, says Michael Hoffmann by Tessier Property Brokerage & Management. He represents the GBX Group, which built an old church on S. French Broad Ave. about three years ago. 16 bought. The downtown building, built in 1929, has been vacant for nearly two years but has significant potential, claims Hoffman. “It’s perfect for turning it into a venue,” he says. “There is a big stage in the former sanctuary. It would also be great for an office, art gallery, or charter school. “

And so that the building is not demolished, GBX, which specializes in the renovation of urban structures, has placed it under a listed easement. “We were approached by a number of hotels,” Hoffman notes. “They come from the wood when such a piece of land becomes free.”

Many churches and banks have faced economic hardship and consolidation in recent years, leaving the Buncombe County’s countryside littered with empty buildings. In the Gashes Creek area of ​​East Asheville, development of a new hillside office building over US Highway 74A continues from a bank that has been vacant for approximately two and a half years.

“The best benefit is always reuse,” advises commercial real estate agents James Wilson by Pulliam Properties, which represents the former bank location. He says he received a few calls about the property and said, “New developments are helping to generate interest in existing land. But it is always the financial result that is the driving force for investors and developers. “

Think big

The leadership of Biltmore Church believes that finding suitable locations for adaptive recycling is the best way to manage their resources. “Why should we go out and build something brand new when we can be stewards of the land and our community finances?” Asks Carl Setterlind, the pastor of creative ministries. “It’s just a win-win situation.”

CREATIVE THINKING: A former Kids R Us store has been redesigned on the East Asheville campus of Biltmore Church. Photo courtesy Biltmore Church

Until 2012 the church had a single location in Arden. But instead of expanding this location further, the leaders decided to set up outposts in different neighborhoods. They now have half a dozen campuses and they say they had no problem finding suitable empty buildings.

“We always keep an eye out for retrofitting options,” says Setterlind. Recent church renovations involved a former Bi-Lo grocery store on the Smokey Park Highway in West Asheville. “We’ve kept the shape of the storefront and matched the look of Gold’s Gym and other stores there.”

The same kind of seamless transition can be seen in the former Kids R Us store on Fairview Road in East Asheville, which is now home to a sleek, modern-looking Biltmore Church. The Hendersonville office is located in a former NASCAR garage owned by Andy Petree‘s No. 33 racing team. The church even kept the roller doors.

Filling in the gaps

As vacant land becomes scarcer in high density metropolitan areas, repurposing existing structures may prove to be the best approach for apartment buildings, retail stores, offices, warehouses, and even industrial applications. The retrofit allows developers to add features like smart technology and energy efficient upgrades to the property that can translate into higher rental rates. At the same time, small, empty lots and viable empty buildings can provide answers to a city with soaring property prices.

“Affordable housing is dense housing,” says Nelson of NAI Beverly-Hanks. “We just need someone with the vision to use these valuable spaces and the willingness of the city to be flexible.”

And as city guides look for ways to manage the growth while preserving important aspects of the current natural and built environment, Beach Hensley said, they could relax some of the building and zoning codes that can hinder adaptive reuse. Citing the costly changes he had to make to add an outside fire escape to the back of his building, he says, “They can make retrofitting prohibitive.”