Texarkana: Hotel project expanding

TEXARKANA — Plans to renovate the Hotel Grim have expanded to include redevelopment of two nearby vacant buildings, the city of Texarkana, Texas, has announced.

The former Sears store at 301 Pine St. will be home to about 20 market-rate apartments, and the Harrell Building at 317 N. State Line Ave., formerly known as the Rialto and the Medical Arts Building, will become office space.

The Hotel Grim will convert to about 98 family apartments on the upper floors and commercial space on the ground floor. Efficiency, one-bedroom and two-bedroom units will be available.

The original goal was to offer mostly market-rate apartments in the Grim, but “a recently completed market study and additional environmental costs” caused a change in those plans, a city news release stated.

“The study showed that the multi-family rental rates in the Texarkana market were lower than the development team expected, compared to similar markets nationwide. The additional environmental costs were related primarily to the removal of lead-based paint throughout the building,” said David Orr, city director of planning and community development.

The overall project cost is estimated at $20 million, with $12 million to $13 million of that for construction. Together, renovating the three buildings will add about 118 residential units and more than 12,000 square feet of new retail and office space downtown.

Creating more downtown residences is exciting, said Ina McDowell, executive director of Main Street Texarkana.

“It’s great news. Of course we had heard publicly about the Hotel Grim project and how it looked like that was going to move forward, and there have been rumors about it including the Rialto building, but we weren’t sure. And now to find that the old Sears building is also a part of this project is just wonderful,” she said. “I think we’re going to be meeting a real demand for more living space in downtown.”

Texas-side Texarkana Mayor Bob Bruggeman said the three projects “will go a long way in revitalizing our historic downtown district.”

“These buildings are located within a high-visibility corridor, which will enhance the appearance of the area, as well as stimulate economic activity,” he said.

Sale of the Sears and Harrell buildings to developer Jim Sari is expected to close this fall, according to a city news release. Sari is expected to close on the sale of the Grim possibly by June.

In January, the Department of Housing and Urban Development approved more than $1.4 million in loan guarantees to the city, the final element of the plan to finance the Hotel Grim’s renovation. The city also helped secure historic-site tax credits and Environmental Protection Agency loans to help with financing.

David J. Potter II owns the Sears building, which has a 2017 appraised value of $18,000, according to Bowie Central Appraisal District records. Owned by Margaret Harrell, the Harrell building was appraised at $51,421 this year.

Rivergate Properties LLC, formed by Harrell’s husband, local attorney Billy Harrell, owns the Hotel Grim. The hotel was appraised at $55,660 this year.

Built in 1902, the Rialto was one of the city’s first solid-brick buildings and one of the first to have electricity, according to local historian Beverly Rowe in her book Twice Upon A Time, In Texarkana.

The Rialto was originally an apartment building, but by 1931 it held various business offices and the medical clinics that it became known for by midcentury. It was later renamed the Medical Arts Building. In 1985 or 1986, it was renamed the Harrell building. It still had one tenant, an architect’s office, as late as 2003.