Comment on this story Lerner Lofts 403 S. Gay 4 Units Left: 2 x 3 bdrm/1.5 bath: $276,000 2 bdrm/2 bath: $236,000 1 bdrm/1 bath: $123,000 Contact: Terminus Real Estate 673-6300

Downtown is going fast, and the price is steep

by Matt Edens

“This building has a lot of history, both before I bought it and in the short time since I bought it,” says Leigh Burch, developer of the Lerner Lofts at the corner of Gay Street and Wall Avenue. He isn’t fooling. Built in the 1890’s as two separate buildings, the complex has housed a hat shop, a shoe store, two movie theaters and Lerner’s over the last century. And the year or so of Burch’s ownership has certainly been eventful, too. Perhaps you were tuned in a little over after the first of the year when the a big chunk of the building’s rear portion collapsed, live, on the six o’clock news?

Not that it shows. Walk toward Market Square from Gay and you’d never guess that roughly half the building’s Wall Street façade is brand new: a steel structural frame clad in brand new brickwork. I had to ask about the brick, by the way, Burch did such a good job matching the original that I thought they had been salvaged from the rubble reused. His carpenters also did a fine job replicating the building’s decorative cornice.

What I’d feared was a catastrophic loss, back in January when I watched the bricks tumble into the street, ended up being an excellent example of how it’s entirely possible to blend new construction into one of downtown’s most historic blocks. A lesson we may soon have a need for, if Lerner’s sales are any indication.

Of the 15 units in the building, 11 are already sold, before the sheetrock’s even hung. Even more impressive is that, with prices per square foot in the $150 range, they aren’t exactly cheap. I wonder if all those folks out in Farragut, livid over the library, know that downtown lofts are priced as high or higher than most of their McMansions? And will they still think downtown’s dead once we’ve run out of buildings for loft conversions and end up building new “lofts” on downtown’s most sacred soil: surface parking lots?

We’re not there yet. But when we are, I hope we’re still developing lofts with the same attention to quality fit and finish that has gone into Lerner’s (a valid concern as more developers pile onto the bandwagon). Designed by the firm of Goss, Piercy-Goss, most of the units feature multi-level layouts with dramatic staircases, large light-wells with lots of glass-block walls, and kitchens with granite countertops, maple cabinets, stainless steel appliances and soaring ceilings of 20’ or more. Eight units have private roof balconies (sorry they’re all sold) and two of the rear units (still available) have private recessed porches. Other details include original hexagonal tile floors in one of the available units, exposed steel beams, exposed brick and art-nouveau/deco style painted plasterwork dating from the building’s days as the Strand Theater (1916-1948) that has been sealed and preserved—touches that’ll be hard to come by once the downtown market moves towards new construction. So you’d better get them while you can. Because I’d hate for you to show up late to the party and realize that, rather than dead, downtown’s all sold out.

August 12, 2004 • Vol. 14, No. 33 © 2004 Metro Pulse