Elevator Building developer shifts gears, moves forward with business incubator concept

The last time Model D covered the E. Riverfront's Elevator Building, back in April 2007, things were different in the world of development. After the, um, downturn in the real estate market, the condominiums planned for the building stopped making sense.

But developer Randy Lewarchik regrouped, and construction has begun to convert the building into a small business incubator with 24 units averaging about 1,000-square-feet in size -- plus common areas including a kitchen and showering facilities.

Why the 180-degree-shift? "We had this slated for residential loft development -- a for-sale product, along with Watermark and @water and Globe Trading," says Lewarchik. "After [the housing market] collapsed, we closed the books, and are trying to make it a benefit to the city, a functioning property with a positive cash flow."

Lewarchik estimates that facade construction will be complete by September, interior demolition by November and units complete by spring 2010. He hopes to have a model unit ready for viewing in the fall.

With only two weeks of marketing the new vision under his belt, Lewarchik has already seen interest from graphic and clothing design companies, photographers and an internet business. "Where we are located is a physically active area, which tenants tend to be attracted to, [with access] to kayaking, biking and jogging," he says, also pointing out that, "Our numbers are quite a bit cheaper than average lease in the downtown area [and] our offerings are simple, a little nicer than Russell Industrial, but not as nice as an office in the Ren Cen."

The Elevator Building is at 1938 Franklin. Find out more info at its website, which can be found here.

Source: Randy Lewarchik, The Elevator Building
Writer: Kelli B. Kavanaugh