Historic structures pose challenges, rewards

The building’s new owner, however, isn’t daunted by the task in front of it: to bring the mammoth building back to life.

Atlanta-based developer Jamestown has redeveloped similar structures in Atlanta and New York to great success. A 1932 building in New York that Jamestown renovated with partners was the headquarters for the Port Authority of New York and New Jersey. The nearly 3 million-square-foot building at 111 Eighth Ave. today has tenants like Google and the Food Network, and it is on the market for $2 billion.

To be sure, the task at the former Sears building won’t be easy. Work will include demolition of parking decks, new wiring and ventilation, new elevators and removal of industrial equipment.

Some developers won’t touch buildings like this one, in part because restoring older buildings typically is more expensive -- and fraught with headaches -- than building from scratch.

Why it matters

Despite the price tag, historic buildings often are beloved by their communities, and the architecture of a different time becomes an engaging space for modern users.

“It’s a very high quality building," Leslie Canaan, a principal urban planner with Atlanta’s Urban Design Commission and planning office, said of the Sears building. "If you tried to build the exact same building now, my guess is that it would be a lot more expensive than simply changing the use and interior.”

Another aspect to consider, she said, is that historic buildings attract preservation tourists. The former Sears building in Atlanta is linked to similar buildings the chain built in other cities, which creates added interest.

“It’s important to preserve buildings like this," she said. "It gives us a physical visible presence that links us to our past and to our history."

In the end, Jamestown believes it’s worth the trouble.

“Historic structures inherently are more complicated, but the benefits far outweigh the negatives,” said Michael Phillips, managing director of Jamestown and president of Jamestown Realty Co., the firm’s creative arm. “What we do is try to incubate and create communities within those structures. The historic fabric overrides the challenges of renovation."

Jamestown's to-do list

Phillips took The Atlanta Journal-Constitution down the list of things that need to be done to the Sears building. He said the company plans to spend about $180 million renovating, retrofitting and repurposing City Hall East.

First, he said, Jamestown with its division Green Street Properties will embark on the decidedly unsexy job of demolishing parking decks that engulf the building.

He plans to use part of the building’s basement as parking and create a plaza area that is more pedestrian-friendly.

Another job is figuring out what to do with the leftover conveyor belts and large industrial equipment inside.

“Then we’ll deal with the wiring, electrical, HVAC and all that. The spaces are just vast, so there’s a lot of room to deal with things that wouldn’t be the case in tighter environments.”

All the elevators need to be replaced, although Jamestown plans to keep some of the freight elevators, which he said have “been maintained wonderfully for years.”

Then there’s the overall plan of how to reconfigure the space for offices, residents, shops and restaurants. That will come as Jamestown signs leases and other decisions are made.

He said the renovation costs will be paid from an opportunity fund Jamestown raised in 2008.

Nearby inspiration

Atlanta has many examples of buildings given new life. The Fox Theatre, the Buckhead Theatre, the former Macy’s building downtown and the Earl Smith Strand Theatre in Marietta are but a few examples.

A vintage theater in Marietta faced its own remodeling challenges, said Earl Reece, executive director of the Earl Smith Strand Theatre on the Marietta Square.

The building, which dates to 1935, was reopened a few years ago after being shuttered in the 1970s. The theater board was able to raise $6 million to not only restore original features, but also add flare to the original space, such as an organ on a hydraulic lift.

Still, removing black enamel paint from the lobby ceiling took two workers nearly three weeks to scrape off.

“When they got it all off, it weighed over 100 pounds,” said Reece.

The theater space also didn’t allow for a full catering kitchen, a large coat check room, or ample space for staging props.

“You look at the things that you can do and you prioritize, and that’s what we had to do,” he said.

But in the end, he said it was worthwhile.

“I wouldn’t give up the vintage feeling and keeping The Strand intact. People love to come here and reminisce about their first date and their first kiss. And now they can bring people back in to see what it was like.”

Jamestown hopes for a similar effect when the former Sears building reopens.

“I think as the Sears building and City Hall East, it is known throughout the Southeast and particularly in Atlanta. We’re definitely motivated to do a whole multimedia story project, with everyone sharing their experience of this building and how it factored at some intersection of their lives.”

A look at Jamestown's buildings

Atlanta-based developer Jamestown is experienced at rejuvenating older buildings. It will tackle City Hall East next, and here are a few past examples.

City Hall East, Atlanta

Building measures 2 million square feet, larger than Bank of America Plaza

Plans call for a $180 million renovation

All elevators, wiring, and heating ventilation and air conditioning to be replaced

Parking decks demolished

Conveyor belts must be moved that still exist from use as Sears’ catalog distribution center

Nine floors on three wings

Each floor measures about 200,000 square feet

Ceiling heights range from 12 to 18 feet

60 percent of the building is open space

Move-in date: 2013

White Provision, Atlanta

Bought for $13.5 million and invested $70 million

Won an Atlanta Urban Design Commission award of excellence in 2010

Tenants: Abattoir, Room & Board

Chelsea Market, New York

1.1 million square feet

Tenants: Anthropologie, The Lobster Place, Dickson’s Farmstand Meats

111 Eighth Ave., New York

2.9 million square feet

Renovated with other partners

Tenants: Google, Major League Baseball, Food Network

Price: For sale for nearly $2 billion