The Dirt: Historic Peyton Building to become ‘livable’ apartments
Sun., March 12, 2023
Developer Jordan Tampien and a group of investors have purchased the historic Peyton Building in downtown Spokane with plans to convert the office spaces into affordable rental units.
The seven-story building at 10 N. Post St., is among the oldest structures in the Lilac City. It was built to replace the Great Eastern Building, which was destroyed by the fire of 1898.
Most recently, it had been used as office space, said Tampien, who with his brother, Joel, founded 4 Degrees Real Estate. The building’s previous owner, Scott Isaak, of Chelan-based 5D Holdings LLC, purchased it in 2021 for $11.4 million.
“I was working with Scott Isaak when he acquired it a year-and-a-half ago with the intention of redeveloping it once it became available,” Tampien said. “I worked with some groups out of town to get the funding. It’s a cool one.”
He said plans call for developing a total of 96 apartments. Of those, 18 units will have two bedrooms and two bathrooms; 68 will have one bedrooms with a den area; and 10 will be studio apartments.
The den areas of the one-bedroom apartments could be converted into a second bedroom, depending on the renter’s choice, he said. Tampien and a group of investors bought the building earlier this month for $12.2 million, he said.
“It’s one of those projects that we get really excited about. For us, it’s a triple bottom line. Really, it’s a good community builder,” Tampien said. “We are taking 100,000 square feet off the office rental market and (it) gives us another 100 units” of apartments.
The units remain in the design phase, but Tampien said he plans to market them between 15% and 20% below average market rent price.
“We are trying to give people as much flexibility in the living situation as possible,” he said. “They won’t be low-income housing and not luxury housing. We call it livable housing.”
Tampien, his brother, and Ryan and Matt Goodwin are co-owners of Brick West Brewing Co., 1318 W. First Ave. The Peyton Building project, which get underway as early as September, is designed to provide housing for young professionals who want to walk to work, Tampien said.
“That’s what we are missing, is people who want to be downtown,” Tampien said. “If I’m on a new salary just out of college, I can live downtown and not have to live in the Valley and commute. This, really, is just trying to bring that energy back.”
Spokane Valley apartments
In addition to planning on the Peyton Building, Tampien said his organization has two other apartment projects that are expected to get building permits from Spokane Valley very soon.
One of the projects calls for four buildings with a total of 106 apartments at 5910 E. Fourth Ave. in Spokane Valley. The projected cost of that project is $21 million.
The buildings, which include an office and about 100 parking spaces, will be built on property that was part of the Tampiens’ $4.4 million purchase of the 9 acres of the former Spokane Club’s Spokane Valley facility.
Plans include continuing to operate the Wellness Center at Central Park, which is at the site, Tampien said.
Architect Evan Verduin, of Trek Architecture of Spokane, is designing both that project and a separate 55-unit development at 12507 E. Fourth Ave.
That project, which is expected to cost about $11 million, includes three buildings and 35 garage stalls, Tampien said. Both are being built by T.W. Clark Construction, of Spokane Valley.
The smaller project is expected to take 10 months to complete. The 106-unit project on the former Spokane Club property should take about a year, Tampien said. He said he hopes to begin both sometime in April.
“Interest rates have forced residential builders to stop building” homes, he said. “Housing is going to become even a bigger deal going forward. If we can at least offer some options for housing, this is the best thing we can think of to do.”
Replacement tax office
Liberty Tax Service has applied for a permit for a new commercial building to replace the office that was struck by the same dump truck that also took out the adjacent Dutch Bros. Coffee stand at 408 S. Freya St.
Architect Scott Ballard said he hopes to start construction soon on the planned building, which is just less than 2,000 square feet. The valuation listed on the building permit request with the city of Spokane is $450,000.
Plans include room for a Liberty Tax franchise.
“There will be one tenant space as well,” that the business can rent out to another business, Ballard said.
The contractor for the project, which is expected to take six to nine months to complete, is All Things Remodel, of Spokane Valley, Ballard said.
The former Liberty Tax Service building was damaged on Aug. 20, 2021, when the driver of the dump truck was unable to slow down while descending the South Hill and struck six vehicles and the two buildings on South Freya. Seven people were taken to hospital after the crash.
That driver, McGavin Medrain, was sentenced in February 2022 to 15 months in prison after pleading guilty to vehicular assault.
Virginia Beach, Virginia-based Liberty Tax Service has four other area locations.
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