Developer Nears Deal On Fairmont Building Former Downtown Apartment Complex Will Become Office Space, Wells Says

Almost one year to the day that the Fairmont Apartments were gutted in the Mars Hotel blaze, a local developer is close to striking a deal to convert the building into high-end office space.

Wells & Co. is in the final stages of negotiating to buy the building, said Dan Geiger, vice president of Diamond Parking, the Fairmont owner.

“It’s a win-win situation for both parties,” he said. “Diamond Parking did not need another parking lot in that particular area of downtown. We’re delighted that Wells & Company is going to take it on and give it a new life.”

Fire consumed the Fairmont Apartments, 315 W. Riverside, last July 16, displacing more than 100 low- and moderate-income residents.

Diamond Parking had originally intended to rebuild 99 apartments, but halted its plans in May when projected costs outpaced the expected income those apartments would provide.

After spending about $1 million on design and engineering, the company decided that it would rather demolish the building for a parking lot if a buyer could not be found. That’s when Spokane developer Ron Wells made an offer.

Wells declined to disclose the purchase price or details of his plans for the Fairmont, but did say only a few conditions must be resolved before the sale is finalized.

Office space is the only viable option for the building, he said, because apartments don’t pencil out. Rents of $600 per month would have to be charged in a market where $350 studio apartment rents are the norm.

Since only the shell of the Fairmont remains, Wells said it would be possible to convert the interior into class A office space.

Together with Avista Development, Wells & Co. restored and developed Steam Plant Square. The company has also restored a number of historic buildings in Carnegie Square, on downtown Spokane’s west end, and Browne’s Addition.

Work on the Fairmont may have to wait, however, for more than a signed contract with Diamond Parking.

“We won’t do anything there until the mess with the rubble of the Mars Hotel is fixed,” he said, adding that Wells & Co. would consider purchasing and cleaning the site if it is sold at a “fair market price.”

A sheriff’s sale of the Mars property is scheduled for Friday at 10 a.m., said Dave Nakagawara of the city building department.