A Spokane company led by real estate executive Bill Butler has completed its purchase of the eight-story, former Wells Fargo Bank Building downtown and has started work on a $1 million-plus renovation project there.


The company, Riverside 522 LLC, bought the structure last month for $2.75 million from Spokane developer Walt Worthy, picking up its option to purchase the building after leasing it for six months. Butler says the company leased the structure from Worthy while waiting for the expiration of Wells Fargos noncompetition clause, which said another bank couldnt lease space in the building, located at 522 W. Riverside, for six months after Wells Fargos departure. The bank moved to its new downtown quarters, at 601 W. First, late last August.


Currently, WEB Properties Inc., a commercial real estate brokerage and property-management company that Butler heads, occupies space on the second floor of the building on Riverside and is the buildings only occupant. Butler says, however, that Paukert & Sherman PS, a Spokane law firm, has agreed to lease half of the buildings fifth floor and is expected to move into that space in mid- to late June. The firm currently is located in the Rock Pointe Corporate Center, at 1212 N. Washington.


Butler says he is talking with three banks that are interested in leasing the first and second floors, which he describes as in turn-key condition, meaning that a bank could move in and begin operating a branch there without having to make improvements to the space.


For now, the building is being called the Fidelity Building, which was its original name, when Fidelity Bank built it in 1952. Butler says, however, that if a bank agrees to lease a substantial amount of space in the structure, hell change the buildings name to include the name of that bank.


Also, Butler says, three law firms are looking at the buildings top floor, and one of those firms is considering leasing the sixth floor as well.


Eventually, WEB Properties will take an entire floor in the building for its offices and for six office suites that it will make available for lease to small, typically single-person businesses, Butler says. Hes waiting to select the floor WEB Properties will occupy until some of the prospective tenants that hes talking with choose the spaces they want to lease.


For the renovation work, the third, fourth, fifth, and seventh floors have been gutted and will be rebuilt. The other four floors are expected to remain largely undisturbed, unless a tenant wants to make minor changes, Butler says.


The buildings exterior will be revamped with new windows and an exterior tile. Also, an arched entryway along Riverside will be removed, and the buildings lobby will be extended outward.


Butler is acting as his own general contractor, and Spokane architect Al French is designing the improvements.