Eugster’s lofty ambition

Steve Eugster is well-known in Spokane as an attorney, former city councilman and political candidate.

But he also holds a title fewer people know about — developer.

Eugster renovated the Minnesota building on West First, where his law office is located. Now, he’s moved on to the building next door — the three-story Oakley, at 417 W. First.

Through a partnership with his two brothers and business partner, Al Blalock, Eugster is converting the upper floors of the Oakley into seven lofts. Two are ready for lease now and the remaining five will be finished by spring, Eugster said.

“Downtown is only going to recreate itself if we do something with the second and third floors of these buildings. I’m trying to make it survive,” Eugster said. “There’s a certain amount of charity involved, but also a certain amount of love and a certain amount of market analysis.”

A recent study backs up that market analysis. It showed that downtown could absorb an additional 300 housing units per year for the next several years. Also, developer and historic preservationist Ron Wells recently said he has a list of 140 people who say they want to live downtown. Other apartments and condominium projects also are under way downtown.

Looking east down the block from his office, Eugster said he thinks the upper floors of the Wharton and Comet Press buildings would work great as housing units as well.

Eugster’s Oakley Building lofts range in size from 500 square feet to 900 square feet and will rent for $550 to $850 a month, he said. There are five lofts on the top floor and two on the second floor. The lofts have angular walls with exposed brick, tiled kitchen and bathroom floors, and skylights in some of the upper units. Five of the units have their own washer and dryer, while the remaining two share a laundry room. Eugster eventually plans a deck off the third floor of the Oakley, over the top of the Minnesota building next door.

The first floor of the Oakley is for lease as office or commercial space. It has 4,300 square feet of space and would lease for up to $3,500 per month, Eugster said. The space could also be divided into two offices.

Eugster and his partners bought the Oakley in 1999 for $151,000, under the company name Mound Hardware, which was the Eugsters’ father’s business. They are investing about $900,000 to renovate the 1909 building.

Both buildings are listed on the National Register of Historic Places as “contributing buildings” in the East Downtown Historic District, according to Spokane’s Historic Preservation Department. The 1904-era Minnesota, originally called the Transient Hotel, also is listed on the Spokane Register of Historic Places. National listing makes renovation projects eligible for federal income tax credits, while local listing lowers a building’s assessed value for 10 years, significantly reducing property taxes. Both benefits are in place to encourage historic preservation.

Eugster said he plans to apply to list the Oakley, also known historically as the Interstate Rubber Co. building, on the local register as well.