Tax credit helps transform historic Stillwater Armory into luxury apartment complex – Twin Cities – About Your Online Magazine


After years of negotiations and legal disputes, the developers behind a luxury apartment complex in the former Stillwater Armory, in downtown Stillwater, were ready to dismiss the project.

But his luck changed last year, when the National Park Service’s preservation division revised the proposal and approved a modified version of its original plan.

CVII Holdings has agreed to leave two-thirds of the arsenal’s historic gym / exercise room intact – a move that allows them to obtain the historic rehabilitation tax credit that makes the project viable, said Matt Wolf, president of CVII.

To qualify for the 20% tax credit, a project must be on the National Register of Historic Places, must generate income and be a substantial rehabilitation project. Fieldhouse 34, as the project is called, meets all three criteria, said Wolf.

Now, seven luxury apartments and nearly 12,000 square feet of commercial space are under construction. The apartments, which range from 750 square feet to 1,900 square feet, will be rented for $ 1,750 to $ 3,400 per month.

Seven luxury apartments and nearly 12,000 square feet of commercial space are under construction in the old Stillwater Armory building in downtown Stillwater. This architect’s rendering shows what the building’s old drill room / gym will look like when construction is completed in June 2021. (Courtesy of CVII Holdings)

Construction is due to be completed by the end of June and tenants are expected to move by July 4, Wolf said.

STILLWATER HISTORY

“Almost everyone I spoke to in Stillwater has a story that took place in the arsenal – from attending dances and boxing matches to scouting and basketball meetings at noon,” said Wolf. “It is not always that you have the opportunity to breathe new life into a space that has been so central to a community for almost a century.”

The 27,000-square-foot arsenal was designed by architect Oscar Lang of Minneapolis. In addition to military training, it was used for public events, sports and concerts.

CVII worked to preserve the historic elements of the 1922 building – the exposed bricks, wooden floors and iconic arches. “The mix of the old and the new will be something really special for our tenants to enjoy,” said Wolf.

Building amenities include: covered heated parking, 2,200 square foot gym, shared work space and a theater / meeting room. Future plans include a deck / patio / barbecue area behind the building, Wolf said.

“The main objective now is to fill the remaining space of the academy, about 5,000 square meters, with a commercial tenant,” he said. “I think it would be great for a creative office space, something with open collaborative office needs, like an architectural office.”

UNDER THE WIRE

CVII, which has 107 in Roman numerals, bought the old arsenal at 107 E. Chestnut St., for $ 605,000 in 2018; The building was valued at $ 1.2 million in 2016.

Fieldhouse 34 will be completed before sunset for the state’s rehabilitation tax credit history in late June, Wolf said.

“Let’s go under the wire,” he said. “These projects are really only possible with tax credits; otherwise, the building is stuck in limbo – the city doesn’t let you demolish them and no one can afford to rehabilitate them, so they end up dilapidating until a public / private partnership comes into being, but that usually doesn’t it happens to fruition. “

The arsenal was closed a few years ago, after plans were made for the new Stillwater Army National Guard Readiness Center. O $ 20 million center, opened in 2017, is the headquarters of three units of the 34th Infantry Division “Red Bull”.

Paula Fonseca