Are restoration and renovation projects the way to go when new commercial construction starts are stagnant (or worse, nonexistent)? Some contractors say yes. While lodging and commercial construction is down almost 35 percent from last year, a few specialty contractors are keeping busy restoring older buildings—many with historic value—to rejuvenate everything from office headquarters to high-end condominiums.
“Until very recently, we hadn’t seen much restoration or renovation work,” says Tom Beard, president and CEO of
Palmer Electric Company, Winter Park, Fla. The Orlando area market was mostly calling for new construction and tenant build-outs.
“But, quite a few contractors that do that kind of work are coming back to performing renovation projects,” he says.
Industry experts say urban areas, with scarce land available for new construction and several opportunities for historical building tax credits, are leading the renovation trend. Larger cities tend to hold their real estate value, offer public transportation options and boast unique architecture—making them appealing for commercial redevelopment, even in an economic downturn.
But, renovation jobs are filled with uncertainties, and experience is a prerequisite to tolerate the inevitable project headaches.
For example, in early 2008, Palmer Electric began the company’s largest ever renovation project: the Lake Buena Vista Holiday Inn, a 15-story, 231-room hotel near Walt Disney World.
The property took a beating during the 2004 hurricane season, and after remediation, the property owner, CIGLBV, LLC of Atlanta debated for several years about how to transform and brand the hotel.
With a strong footing in the area’s residential and commercial marketplace, Palmer Electric was a top pick by the owner to revamp the hotel’s electrical systems.
“In a job like this, you run into a lot of things you didn’t expect, and you have to take the time to explain them to the general contractor and the owner,” Beard says. Because the Lake Buena Vista Holiday Inn building dated back about 25 years, it was in need of numerous updates to meet building codes in addition to the initially contracted electrical redesign work.
Palmer Electric completed the electrical for the guest rooms last year, and recently finished the second phase of work for the common spaces, lobby and kitchen in time for a soft opening this month.
Restoration All-Stars
All-Star Electric, Inc., La Place, La., is another experienced company that general contractors and property owners rely on for complex restoration work.
DonahueFavret Contractors, Mandeville, La., took on an adaptive reuse project to convert the National American Bank Building—a 23-story historically significant building in downtown New Orleans—into 200 Carondelet, an upscale multifamily high-rise containing 189 apartment units.
The building owner envisioned the transformation of the 1920s-era building would provide much-needed housing for displaced residents of the city, as well as symbolize the city’s rebirth. But the historical restoration was a tall order.
The downtown site was particularly challenging. With almost no staging area, Carondelet Street needed to be closed down to accommodate a 24-story crane, and overhead power lines for the street car had to be taken down and buses hired to carry commuters on alternate routes.
“Sometimes it seemed there were not enough hours in the day and not enough physical delivery space,” says Harold Boydston, All-Star’s project manager. “The biggest feat was the team-building and coordination just to get supplies and materials on the job because there were no storage facilities available.”
Using a dual cab hoist on Carondelet Street with a 6,000-pound capacity per cab, crews transported demolition materials to the fourth floor, where a ramp and chute system sent the refuse through one of the windows.
Two separate schedules directed subcontractors like All-Star Electric on how work should progress from the 23rd floor to the third floor of the building. One schedule described the exterior work, while the second detailed the apartment construction.
Typical of older buildings, the crews discovered uneven flooring. It was originally made of terra cotta block, which although structurally sound, posed a challenge for penetration and anchoring. A new security stairwell needed to be constructed for the entire height of the building, requiring entire sections of flooring to be removed from beam to beam.
Abandoned elevator shafts were used to house new electrical systems and run wiring up the height of the building and into individual apartment units.
“We had to be careful not to affect any of the components that would be protected by the historical society,” Boydston says. “When working in the vertical rise for the telephone and data systems, we had to be especially careful. We couldn’t core drill anything, and we had to consult the systems engineer and structural engineer before doing any work.”
Another challenge was a last-minute redesign when a local energy company reneged on its deal to extend its chilled water loop to the historical building. With little rooftop or ground space to work with, All-Star Electric and the mechanical team were tasked with designing and building a new HVAC system on a short timetable.
The HVAC redesign required the installation of a larger transformer vault and the demolition of an appendage of the building to create a roof area to accommodate the new chillers. Through talented problem-solving, the job was completed with no days added to the schedule.
200 Carondelet, now open to residents, shows off a restored façade and refurbished bronze accents, and it satisfies all State Historic Preservation Office and National Park Service recommendations.
It is also up to current building codes, with impact-resistant windows, additional paths of egress, and a new fire pump and wet sprinkler system.
Now, All-Star Electric is working on the restoration of the Pontchartrain Hotel, another symbolic project for New Orleans.
Construction Forensics
In commercial restorations, specialty contractors often do a lot of detective work, searching out clues to determine not only the level of building damage and decay, but also how to fix it.
This was the case when the Dallas County Community College District set its sights on an abandoned warehouse building and cotton gin as its new headquarters.
Last known as the Sears & Roebuck Building, the structure was built in the 1920s as part of a mail-order operations complex in south Dallas. It had been unoccupied and un-maintained for years, suffering from interior concrete cracks, deteriorating metal lintels, 88-year-old wax seals at waterproofing joints and a roof that was comparable to Swiss cheese.
Texas-based
Chamberlin Dallas Ltd., with significant experience restoring roofs and commercial buildings, was selected by general contractor Turner Construction to repair, seal and fortify the structure. The task was to restore the building in just five months while meeting the criteria for historically registered buildings.
Much of the work was a result of hand preparation and hand installation of new materials, such as sourcing like-sized bricks from multiple stockyards around North Texas to match the color and texture of the existing brick.
“It was like a forensic analysis of the building, finding where bricks were missing and supports were damaged,” says David Neal, vice president of Chamberlin Dallas. “A project like this one is unique because you’re trying to make the building look old, yet new at the same time—and make it look like a complete picture.”
The contractors, working in a design-build role, made decisions about the design as discoveries were made about the state of the building and the need for structural repairs.
With a leaky roof covering the building for years, rain had seeped into the parapet walls and caused significant structural damage to the concrete. As it uncovered the damage, the construction team developed creative ways to repair the building’s haunches, window lintels, beams and vertical piles.
“The key was working on this all together with the trades,” Neal says. “It was a beat-up old structure, and we had to fast-track the work with the high-quality finishes the owner wanted.”
The company saved the owner $100,000 in construction costs by single-sourcing the best possible repair materials from the manufacturer, and created cost savings with bulk shipping and purchasing.
The restored building provides almost 100,000 square feet of office space for 120 employees. Both entryways were enhanced with new doors and walkways, and the courtyard space was restored for building occupants to enjoy. Exterior support components were painted white for an aesthetic accent against the restored brick.
Chamberlin craftworkers self-performed 90 percent of the work, without any accidents or lost-time incidents.
“We pride ourselves on doing safe, productive and quality work, and this is another example of the quality work that we do,” Neal says. “The project has strengthened the bonds with the people we work with—and we have shown it off.”
Like many commercial restorations, the new Dallas County Community College District headquarters is located at the hub of a rapidly developing commercial and residential corridor, with improved pedestrian areas and access to nightlife.
While contractors wait out the recession, they’ll be keeping an eye on these new “old” projects that are emerging not only in the commercial marketplace, but in the government and institutional sectors as well.
“I expect a relief soon,” Boydston says. “It feels like it’s starting to turn around a little bit.”