Orchestra Partners launches $40M redevelopment of historic Frank Nelson building
A prominent development team is beginning work on a much-anticipated historic redevelopment after securing financing for the project.
After ditching its original plans to redevelop the Frank Nelson building for office use, Orchestra Partners has decided to switch gears and transform the historic building into a 180-unit apartment community with ground-floor retail.
The local firm closed on a construction loan on May 21, green-lighting construction work to begin on the roughly $40 million project in June. More details about the loan were not immediately available in public records.
Birmingham design-build firm Creature is the architect and contractor. Dubbed “The Frank,” the project is expected to be complete late next year.
“Challenges with securing enough parking for business tenants led us to a new vision for The Frank that we’ve been working on for over a year now,” Hunter Renfroe, Orchestra’s co-founder and principal, said. “We believe this is a much better fit for the building and the neighborhood.”
Citing enrollment growth at the University of Alabama at Birmingham and the post-Covid migration to smaller cities, Renfroe is bullish on the city’s reputation as one of the best places to rent in the country.
“To attract new talent and continue to build on Birmingham’s momentum, we plan to position The Frank as a unique community for renters who are looking for an unbeatable urban location bustling with activity and amenities,” he said.
The development will come with a mix of studios, which will be about 400 square feet, and one-bedroom apartments, which will be about 600 square feet, designed for urbanites living a minimalist lifestyle. In addition to efficient and affordable units, The Frank will come with common areas and amenities such as a European-style outdoor courtyard in the heart of the building.
“Like the rooftop, the interior courtyard will be an incredible space where friends will come to meet up on their way out for the evening and where residents come to have their morning coffee and read a book,” Renfroe said. “Fostering community is a core part of every Orchestra project, so I’m excited that the courtyard will provide another gathering spot for locals to enjoy.”
UPS and Trattoria Zaza will remain open during construction. Orchestra Partners is looking for a local restaurateur to partner with in the operations of the courtyard and the retail space at the corner of Second Avenue North and 20th Street, which is available for lease with Retail Specialists serving as retail leasing broker.
Originally approved in 2018, Orchestra Partners first envisioned the project as a “vertical campus” with modern office spaces. The next year, it secured more than $6 million in financing from Ardent Cos. in Atlanta, according to property records. The project was approved for $5 million in Alabama historic tax credits, the highest allocation possible from the state, as well as federal historic tax credits. The National Park Service recently approved Orchestra Partners’ new plan to redevelop the building for residential apartments, as we reported.
McNair Historic Preservation is the lead historic preservation consulting firm for the project.
Birmingham’s third skyscraper, the 10-story Frank Nelson building was designed by William Weston and built in 1903 as the First National Bank Building during the city’s early economic boom years. It was re-named in honor of real estate developer Frank Nelson Jr. in 1939.
Multifamily experts are bullish on the expanding apartment inventory downtown with more than 2,000 units in the works as well as more than 1,300 that may be developed.
“Each of these developments as well as The Frank will help Birmingham’s momentum and make it a popular option for students and professionals looking for a bustling yet smaller city,” said Steve Nunnelley of Berkadia Birmingham.
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