The traditional “demolish and develop” cycle is facing a reckoning.
As cities and urban centers grapple with a surplus of empty office towers and vacant stores, the real estate industry is shifting toward a more sophisticated model of growth: adaptive reuse.
No longer just about historic preservation, this strategy is a response to current economic and environmental pressures. By reclaiming existing structures, developers can bypass the volatility of raw material costs, efficiently navigate complex zoning, and tap into the growing demand for authentic spaces that new construction cannot replicate.
From Cleveland, OH to Albany, GA, DLR Group is proving that the perceived risk of “old” is actually the ultimate hedge for a more resilient future. We spoke with their team to learn how they’ve merged architecture, engineering, interiors, and preservation to save over 1.5 million square feet from demolition, achieve carbon reductions of up to 75%, and breathe new life into underutilized spaces.
Terminal Tower: office to resi conversion
Built during the skyscraper boom of the 1920s, Cleveland’s iconic Terminal Tower is getting a second life as a luxury apartment building.
While many firms shy away from deep office floor plates, DLR Group viewed the tower’s historic grandeur as a premium amenity that no new build from the ground up could replicate.
“Reusing existing structures provides an experience that wouldn’t be possible with new construction,” says DLR Group Architect Dana Foerster.
The firm converted 12 floors of the 52-story structure into apartments, contributing to a much-needed housing revitalization in downtown Cleveland. Historic tax credits enabled the developer K&D Group to bring the project to life.
Photo by Kevin G Reeves
“Terminal Tower is a great example of what the historic tax credit does best: preserving a historic landmark and breathing new life into it,” says Annette Stevenson, CPA, and partner at Novogradac & Company, who provided tax credit consulting and financial forecasting for the transaction. “Terminal Tower is a special part of Cleveland’s history and it is exciting to see it revitalized into housing units and preserved for future generations.”
The project wasn’t without its challenges. To bring the Jazz Age structure to modern residential code, DLR Group had to route fire suppression and sanitary systems through floors situated directly above an active, separately owned shopping mall.
“Our integrated design team allows us to problem-solve holistically and identify potential issues early on,” says Foerster. “This gives clients an advantage when assessing the feasibility of adaptive reuse solutions. We’re not just relying on 100-year-old drawings; we’re performing due diligence to identify opportunities that reduce risk.”
Key elements of the 1926 tower were preserved in collaboration with the State Historic Preservation Office, while the reimagined residences propel the property into the future, enhancing residents’ lifestyles and energizing the neighborhood with distinctive living spaces, a 24/7 fitness center, community lounge, and rooftop deck with city views.
Century-old manufacturing building transformed into lifestyle hotel
As part of a larger mixed-use development plan, DLR Group transformed the Advance Thresher/Emerson-Newton buildings—former farm machinery factories—into the Canopy by Hilton Minneapolis Mill District, a lifestyle hotel whose contemporary design honors the site’s industrial past.
The concept was driven by the building’s inherent, gritty authenticity as early 20th-century heavy timber manufacturing facilities.
Massive wood columns are disengaged from walls to showcase their scale, and a central atrium features an art installation evoking flour cascading through a sifter: a nod to the district’s milling history.
Photo by Jim Kruger
The hotel contributes to the neighborhood as a new commercial anchor.
“Canopy by Hilton adds to the fabric of East Town and the Mill District,” says George Sherman, CEO, and owner of Sherman Associates. “The shared vision of Canopy by Hilton and DLR Group delivers a spectacular Minneapolis experience. We were driven to capture the spirit and history of Minneapolis, and we are honored to celebrate it with guests, residents, and businesses downtown.”
“There is something really special about repurposing a building and letting it live another life,” says DLR Group Global Hospitality Leader Ed Wilms, “It’s about preserving the crucial historical context that stitches a city together.”
As with the Terminal Tower project, DLR Group also leveraged historic and new market tax credits as part of the project’s financing structure.
“Utilizing those revenue sources in the capital stack gives a project the ability to go beyond expectations,” says Wilms.
From Downtown Department Store to Cultural Clubhouse
DLR Group’s most radical transformation is currently underway in Albany, GA.
The firm is converting a vacant mid-century Belk Department Store into the new home of the Albany Museum of Art (AMA). After a 2017 tornado damaged its previous site, the AMA needed a new space. The project represents a revitalization effort for downtown Albany, anchoring a new arts district to broaden access to the arts.
“With groundbreaking ahead this spring, the Albany Museum of Art’s move downtown reflects a simple goal,” says Albany Museum of Art Executive Director, Andrew Wulf. “Our new home will serve the essential human need of belonging, providing a place for the community to congregate, and a refuge for anyone who needs it. Open year-round and offering free admission to everyone, the larger AMA will be an engine for downtown activity, attracting residents and visitors to the city center, and reinforcing the belief that Albany’s revitalization has momentum. Partnering with DLR Group has been an integrated and inspired process—thoughtful, steady, and rooted in listening—so that our mission and values are genuinely woven into the design.”
DLR Group’s design focused on transforming the building and its adjacent outdoor space into an engaging community hub. To make the windowless space more inviting, the team decided to strategically cut into the existing envelope, bringing daylight into the event space, classrooms, and a flexible space for children and families.
“We wanted to move away from the austerity often found in museums,” says DLR Group Cultural + Performing Arts Design Leader, Monika Smith. “Inspired by the perspectives of museum thought leader Elaine Heumann Gurian, the vision was for the museum to become a ‘clubhouse’, where people can gather, and find their place, even if they aren’t regular museum-goers.”
The project exemplifies the advantages of an integrated design firm with in-house multi-disciplinary expertise: preserving original features and upgrading building systems.
“By not building the structure and envelope from scratch, we cut the carbon footprint in half,” says DLR Group Cultural + Performing Arts Client Leader Rich Hubacker. “Through adaptive reuse, we avoided 760 metric tons of carbon emissions—54% less than new construction. This is equivalent to taking 170 cars off the road for a year.”
The integrated advantage
For developers and investors, the hidden value in these projects lies in the speed to market and the mitigation of unknowns. DLR Group’s model removes the friction that typically plagues adaptive reuse.
“Cost is the biggest question,” Foerster says. “But an integrated design team means we can present options for antiquated systems early on, weighing trade-offs so the owner can make informed decisions. We’re seeing innovation everywhere, from big-box stores becoming community centers to landmarks becoming luxury housing.”
By revitalizing underutilized assets, DLR Group is positioning itself as a leader in adaptive reuse, and ensuring that the history of our cities remains a functional part of their future.
To learn more, visit their website.