Randy Nichols (MSRED ’89), President and Founder of Nichols Partnership, presented at the 2024 MIT World Real Estate Forum’s Alumni Lightning Showcase, on his firms development project, “Art Studios,” located in the Golden Triangle Creative District of Denver, CO. The project exemplifies the company’s commitment to adaptive reuse and thoughtful urban development, transforming a 1960s-era building into a vibrant, multi-functional residential space that helps to meet the growing demand for attainable housing in Denver’s downtown core.
“A conversion is probably the greenest of all building methods.”
Randy Nichols, Nichols Partnership
Project Overview and Design Inspiration
Originally constructed in 1962 for the Western Farm Bureau Life Insurance Company and later home to the Art Institute of Colorado, the 100,000-square-foot, ten-story building now offers 192 studio apartments. Nichols Partnership drew design features from historical and local context but also from international models. “One of the models was a hotel in Amsterdam called Zoku,” Nichols mentioned.
Nichols highlighted the project’s sustainability features, arguing that building conversions are inherently more environmentally friendly than new construction. “Green building is such a big topic now. And, by its definition, a conversion is probably the greenest of all building methods,” he said.
However, office-to-residential conversions are often far from straightforward. Nichols noted that the process is more challenging than many assume: “This is the third one we’ve done, and it’s a lot more difficult to do than everybody makes it out to be.” As ever, it was necessary for planners to innovate. For example, the use of loft beds allowed the team to work around building code restrictions creatively. “The loft bed areas are not in compliance with any building code,” Nichols acknowledged. To circumvent this, all loft beds were classified as furniture, which does not need to comply with building codes. “This is essentially a bunk bed…furniture, doesn’t have to comply with building codes,” he explained.
Outside, the reimagined street-level façade has a modern aesthetic that complements the historic architecture. Inside, the development offers a range of unique amenities, including a lobby lounge, fitness center, bike barn, dog wash, and a makerspace studio designed for various creative activities like photography and 3D printing. Additionally, a penthouse floor features an indoor rooftop lounge and outdoor community space, providing residents with panoramic views of Denver and the Front Range.
Financials and Economic Impact
The redevelopment of Art Studios represents a significant financial investment. The project’s hard costs amounted to approximately $145,000 per unit, with total costs reaching $285,000. The redevelopment is projected to generate a stabilized Net Operating Income (NOI) of $3.2 million, reflecting a Return on Cost (ROC) of 6.6%. These figures highlight Nichols Partnership’s ability to navigate the complexities of urban redevelopment while delivering financially viable projects.
The success of Art Studios offers valuable insights into the challenges and opportunities associated with converting office spaces into residential units. Lessons learned include: partnering with a proficient MEP engineer to ensure that mechanical systems appropriately adapt to meet residential needs, the importance of adding more contingency funds to the project proforma to accommodate unexpected challenges, starting with a low building cost basis, and finally – having support from local government to navigate regulatory hurdles and offset some of the financial burdens associated with adaptive reuse projects.
By balancing historical preservation with modern amenities and practical design, Art Studios meets contemporary market demands while enhancing the cultural fabric of Denver. By offering studio apartments at attainable price points, Art Studios caters to young professionals, creatives, and students seeking to live close to their workplaces and cultural amenities. As construction costs continue to rise, the lessons learned from Art Studios is a key model for future redevelopments, ensuring they are both economically viable and beneficial to the community.
For more information, visit: https://nicholspartnership.com/portfolio/art-studios-at-1200-lincoln/
