July 9, 2003
By Aimee L. Curl
It didn't take Art DeMuro of Venerable Properties long to decide he should get involved with the redevelopment of Portland's historic Telegram building.
"It's like getting asked to go on a date with a beautiful model," he said. "It was easy to say yes."
For DeMuro, who's passion, as well as his company's business, is revitalizing historic buildings, the Telegram represents a unique opportunity.
"Just like everyone else in town, I'd driven by the building many, many times and had always admired it," he said.
The building, located at 1101 SW Washington St., was built to house the Portland Evening Telegram newspaper in the mid-1920s. It was named a National Historic Landmark in 1993.
DeMuro said he couldn't explain the Telegram's "underutilized past."
"It's probably been vacant more than it's been occupied," he said. "I don't know why. The building has wonderful character elements."
The building's character is the primary reason Abstract Unique Fitness recently leased 17,445 square feet on the bottom two floors of the Telegram.
"You need to have a place that people want to be. We wanted something that's unique and different. There's character in that building. From that character, builds the character of the club. You know it the minute you walk into the building," said Jeff Turner, one of the club's owners.
Turner, who with his partners operates Nelson Nautilus Plus, located at 614 SW 11th Ave., plans to open Abstract Unique Fitness early next year. He said Nelson's may stay open after the new club is up and running.
Turner said the facility in the Telegram building will be a vastly different operation.
"We're completely changing our business.Our mission is to cater to the corporate crowd, to create a more upscale club. It will be all-adult, probably 21 and older. It won't be high volume and low cost. We're not trying to overpack it. It will be more of an exclusive downtown hideaway," he said.
This high-end feel is similar to what DeMuro's got in mind for the top two floors planned for office space as part of the Telegram's renovations.
He said they're taking a different approach from the historic space that's typically been renovated to attract creative firms.
"The building is such an elegant building, different from a Pearl District warehouse space that has open ceilings and duct work exposed," he said. "It's more East Coast formal, with finishes that lean heavily toward marble, granite, wood paneling and more refined fixtures. We're going more for a downtown business feel, more grand and a little less artsy."
DeMuro said the space would be perfect for an accountant or law firm.
Craig Kelly at Venerable Properties is handling the leasing for the Telegram. The asking rate is $21 per square foot on the third floor and $22 per square foot on the fourth floor. Both rates includes operating expenses.
The fourth floor, called the penthouse, will be an addition to the original structure.
DeMuro said office tenants could sign for as little as 2,000 square feet or as much as both floors.
"We could do an interior stairway to connect them," he said.
The building has a 19-foot-tall basement that's planned for two decks of interior parking totaling 51 spaces.
DeMuro said the lion's share of the parking is still available.
Construction on the Telegram building began in April. Total cost for the renovations is estimated at $6.5 million.
DeMuro said the project is partially being financed through a federal program offered for properties on the National Historic Register. The credits are equal to about 20 percent of the redevelopment expenses.
In addition, the Portland Development Commission has provided a low-interest seismic upgrade loan.
The building's signature clock, long stalled, will also be revitalized as part of the renovations.
DeMuro said he hopes the Telegram will become a spark for development in the area.
"It's one of those things that will become a landmark for the neighborhood," he said. "It's situated between Safeway and the Brewery Blocks. It hopefully will help bridge those two projects and create some redevelopment waves."
The Telegram building is owned by the Dr. Peter Nathan family, doing business as Telegram Investments, LLC.
Waterleaf Architects is responsible for the design and P&C Construction is the general contractor.
Aimee L. Curl covers commercial real estate and development for the Daily Journal of Commerce. She can be reached by email at aimeec@djc-or.com or by phone at 503-221-3314.