Charm not without challenge

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This article was published 13/09/2021 (1494 days ago), so information in it may no longer be current.

Mark and Shelley Buleziuk like old buildings. More specifically, they like buying old buildings, retaining their charm, and making them feel new again.

That’s exactly what the couple, who’ve been buying and redeveloping aged buildings in the Exchange District since 2001, had hoped to do when they purchased a trio of old properties on Princess Street, including the Thomas Scott Memorial Orange Hall, a municipally designated heritage site, from CentreVenture in 2018.

The Orange hall in particular was hugely appealing to the Buleziuks, who run a company called Space2, precisely because of its character, its classical revival style — defined by columns, capitals, and pediments, among other complex Roman and Greek embellishments and ornaments — and the fact its history stretches back more than a century. When the opportunity came up to purchase all three buildings, and amalgamate and develop them into rental apartments — with over 4,000 square-feet of main-floor commercial space — they were ecstatic.

With pre-leasing soon to begin, and a few months to go before the Carriage Works building’s 77 residential units can be occupied in November, they’re still ecstatic, but it was not a smooth ride, they say, and not without some cracks.

In the fall of 2019, amid renovations, the Orange Hall began to show its age, with structural concerns worsening quickly as work was being done, eventually leading to the street and sidewalk being closed down due to the building’s unsafe conditions. “We were freaking out,” said Mark Buleziuk, an auctioneer who doesn’t mince words. The momentum of the already complicated heritage project came to a screeching halt, added Shelley.

The city eventually ordered the building to be demolished, while the Buleziuks were told that a single heavy snowfall could spell the building’s downfall. For months, the project was in relative limbo, until the 117-year-old building finally came down in February, right on the verge of the pandemic.

Plans shifted, and a new building was constructed within the footprint of the felled hall. The new building’s design had to re-receive city and heritage approvals, while mortgage and financing had to be renegotiated and reworked, and construction got underway in the summer of 2020. One small bright side: the new building’s footprint meant the number of rental units expanded from 61 to 77.

But overall, the loss of the Orange Hall was a difficult one, said Mark Buleziuk, who says heritage properties are a passion of his, and has been since he moved into a downtown condo in 2001. “We’re in the business of restoring buildings, not destroying them,” he said. And to not demolish the building would have put the adjacent building at risk, something that would have added insult to injury to the prior investments and that property’s heritage value.

Meanwhile, after the demolition, the pandemic added more complications, as there were exploding prices on materials such as wood and shortages or long wait-times for other items, such as appliances. Those were unanticipated, but the project still progressed.

One year, and a few setbacks later, the buildings, which have been consolidated under a single address, 216 Princess St., are nearly ready for leasing and occupancy, with building safety features being installed and finalized. The main floor will feature over 4,000 square-feet of art spaces, including a gallery. A commercial tenant, Harrisons Coffee Co., will also be opening their third downtown location on the main floor.

Exterior work is nearly complete, and although a significant number of interior finishing touches are still needed, the studio, one-bedroom and two-bedroom units each feel bright and spacious, retaining the lofty feeling of the former warehouses and the now-gone memorial hall.

The project received financing through the Canada Mortgage Housing Corporation as an affordable development, meaning rents have to be at least 10 per cent below market rates. Mark Buleziuk estimates rents to be between $900 and $1,350.

Asked about that rental price, Buleziuk said he’s always concerned about affordability, especially coming out of a pandemic. “The problem is trying to build these projects and make them work, they’re challenging as it is, being historic renovations,” Buleziuk said. Even before walking in, he said it was obvious there would be more unforeseen challenges than in a new development on an empty suburban lot.

“I think this structural failure we experienced is one prime example,” he said. Other jurisdictions have more competitive tax-credit programs on such projects, he said, giving greater incentive and leading to lower rents on projects with generally higher risk. As it stands, those rents were seen as competitive and ultimately complied with CMHC requirements for the area.

They were confident that given the growing footprint of Red River College nearby, plus the inevitable — yet unscheduled — return to the downtown office, there would be no shortage of interest in the units, even at those price points, from students, young workers and downsizers.

Meanwhile, other new developments are moving forward in the area, including the five-storey Soho Flats apartments at the corner of Princess and Logan Avenue and a residential development directly behind the Carriage Works building on Ross Avenue.

There’s a lot to be excited about in the neighbourhood, the Buleziuks said, looking out from a unit with a huge window looking down on Princess Avenue. Mostly, it seems, they’re excited that this project, which once appeared to crumble before their eyes, has gotten so close to opening.

“It’s been the most challenging project (of our careers in real estate),” Mark Buleziuk said. “But,” Shelley chimed in, “We can see the finish line.”

ben.waldman@freepress.mb.ca