Despite public safety concerns and challenges associated with homelessness, significant real estate investment in downtown Spokane continues, an indication that investors have an optimistic outlook of the future of the downtown core, an industry professional and downtown advocate says.

There are 22 redevelopment and new construction projects in progress and in the planning stages in the core and periphery of downtown this year, that through both private and public investment is worth about $252 million.

Of those, 14 private redevelopment and new construction projects are in the core and periphery worth over $118 million, according to the Downtown Spokane Partnership’s 2023 Economic Report.

Andrew Rolwes, vice president of DSP, says, “There’s a demand for downtown residential that developers are starting to catch up to. The list of projects that are under construction and planning are an indicator that the market is now starting to respond to the demand for residential downtown options.”

Chris Batten, owner of Spokane-based real estate company RenCorp Realty LLC, is involved in three of the 18 projects under construction in the downtown area.

The location of the commercial properties he invests in matters above all other considerations, Batten says.

A prime example of that, he says, is his recent purchase of the four-story Courtyard Office Center, located at 827 W. First, downtown, near the Historic Davenport Hotel.

“I love the design and the style of it,” he says. “But more so than anything is the location. You don’t get a better location than across from the Davenport.” 

He says he has no immediate plans for the property.

“Our goal right now is to get our head around the building and figure out what we bought and go from there,” says Batten. “It’s a property that we think is a long-term hold.” 

Permitting and design plans also are in the works for the commercial remodel of the Wharton Building, owned by another Batten-led company, at 411 W. First, in downtown Spokane, where the Thai on First restaurant formerly operated.

“We’re converting that into 16 loft-style apartments,” says Batten. “We’re actually working on the commercial storefront right now, so when you look at it, it’ll look like an appropriate historic building should.”

Minor commercial improvements to the Wharton Building are expected to be completed in the next few weeks, and the residential remodel project above the commercial space will follow, he says. The Wharton Building’s new commercial tenant likely will be a restaurant or coffee shop, he adds.

The Wharton Lofts redevelopment project is valued at $3.3 million, according to figures in the DSP report.

As previously reported in the Journal, four iconic buildings in the core will undergo major upgrades. The Crescent Building, at 719 W. Main; the Fidelity Building, at 522 W. Riverside; the Peyton Building, at 10 N. Post; and the Bank of America Financial Center, at 601 W. Riverside.

The Crescent Building remodel will convert offices on five of the building’s eight floors to 90 residential units. The first two floors will remain mixed-use commercial space.

Plans on file with the city of Spokane call for updated electrical, heating, ventilation, and air-conditioning systems valued at about $750,000 at the Fidelity Building, located a block east of the Crescent Building.

A group of investors led by Spokane developer Jordan Tampien plan to convert the seven-story Peyton Building to a mixed-use residential building. That remodel is valued at about $18 million.

The Bank of America Financial Center has seven commercial remodel projects in the works valued at $1.8 million.

Private investors have seven additional properties under construction or in planning within the downtown core that are valued at about $59.6 million, according to the DSP report.

Those properties include:

• Avista substation, at 700 W. Second, valued at $4.5 million.

• Old City Hall, at 221 N. Wall, valued at $6.5 million.

• The Imperial, at 128 W. Third, $880,000.

• Howard Apartments, at 218 N. Howard, $2 million.

• Jensen-Byrd Hardware Building, at 314 and 320 W. Riverside, $5 million.

• The Sneva Building, on the 800 block of West First Avenue, $850,000.

• 1 W. Spokane Falls Blvd., $40 million.

Those properties located in the downtown core are bounded by the Spokane River to the north, Division Street to the west, Interstate 90 to the south, and Maple Street to the east.

There are 11 additional public and private properties on the periphery of the downtown area in planning, under construction, and recently constructed that are worth about $231 million, the DSP report states. Those projects include:

• One Spokane Stadium, at 501 W. Gardner, $38 million.

• Pacific Fruit & Produce building, at 102 E. Main, $500,000.

• QualMed Plaza, at 508 W. Sixth, $16 million.

• 44 W. Sixth, $2 million.

• The District Apartments, at 1055 E. Martin Luther King Jr. Way, $62 million.

• Third Draft LLC, at 213 and 217 E. Third, $930,000.

• Papillon South, at 908 N. Howard, $15 million.

• Studio 24 Apartments, at 201 E. Riverside, $1.65 million.

• Koz on West Fourth, at 307 W. Fourth, no construction value available.

• The Falls, at 829 W. Broadway, $15 million.

• Papillon North, at 532 W. Cataldo, $80 million.

That doesn’t include any additional projects at Kendall Yards, which is largely developed.

Dave Black, CEO of commercial real estate brokerage NAI Black, says safety issues are a huge concern for commercial investors, however, investors will continue seeking real estate opportunities wherever deals are found.

“People look for good buys, and if they find good buys, I think they all have confidence that Spokane is going to solve its issues,” says Black.