Luxury condos planned for downtown Fargo’s iconic Black Building

A rendering of what a living room area in a Black Building condominium could look like. Contributed / Berkshire Hathaway HomeServices Premier Properties. Rendering by Craftwell. 

Conversions of downtown commercial properties are taking place around the country, as the increase in work from home post-pandemic has eroded the demand for commercial office space. Changes in shopping habits also led to large old-line department stores being shuttered, empty and in need of purpose.

“A lot of commercial space is being converted into these condos. We think there is a good market here in Fargo, especially with the history (of the Black Building. We’re excited to see it live longer and get folks up there. Residential and commercial is our specialty, so flipping history, that will be a fun transition,” Harwood said.

It was a tough decision for Kilbourne Group, she said.

“Years in the making. … But the Black needs life. And the views are going to be … awesome,” Harwood said. “Someone will get to live up there and see the Red River, and (Island Park), the cityscape.”

Maureen Bartelt, managing broker for Berkshire Hathaway HomeServices Premier Properties, is part of the sales team for The Black.

Bartelt said there can be as many as nine condominiums on the three floors, or as few as three condo units if buyers spurge and purchase a whole floor.

Potential owners will have to buy the raw space at $350-$450 (top floor) a square foot. Fit-up with luxury finishes will run $230-$260 per square foot. That means a 2,000-square-foot condo on the sixth floor could cost about $1,160,000 to $1,220,000, while a similarly sized penthouse condo could run $1,360,000 to $1,420,000.

A rendering of what a kitchen and dining area could look like in the luxury condos planned for the Black Building in downtown Fargo. Contributed / Berkshire Hathaway HomeServices Premier Properties. Rendering by Craftwell. 

Of course, the costs could slide higher if you’re looking to match the lifestyle of your favorite music, sports or movie star.

“If they can dream it. We can achieve it,” Bartelt said. “It will be beautiful. … I think it will be an exciting and unique project.”

Construction will start once half of the space to be converted has been sold, Bartelt said. She estimates work could get underway in January, with four to five months needed to complete a condominium.

Tyrone Leslie, president and CEO of Heritage Homes and Berkshire Hathaway HomeServices Premier Properties, said the conversion is a unique opportunity.

“We are very honored to be asked and to be a part of it. Kilbourne is such a tremendous name in this industry and certainly in this city. To be part of that is quite frankly an honor,” Leslie said.

“And just such a historic building, beautiful location. These units on the sixth, seventh and eighth floors have windows all the way around. You don’t have things obstructing your view,” Leslie said. “It’s such an extraordinary opportunity for people to be downtown. And to be able to have your own, customized condo, is really quite fascinating.”

Leslie said the basement level will be converted into parking. There will also be an indoor dog run usable by residents. Each unit will have its own HVAC system, and balconies can be added.

A rendering of what a bedroom could look like in the luxury condominiums planned for the top three floors of the Black Building in downtown Fargo. Contributed / Berkshire Hathaway HomeServices Premier Properties. Rendering by Craftwell. 

“We have such tremendous flexibility depending on our clients’ needs,” Leslie said. “In downtown Fargo – it’s so exciting to say – it’s really cool!”

Heritage homes was established in 1995 and has built more than 1,600 homes, Bartelt said. Most of its work is new, single-family home construction.

“This is a new, exciting venture for them and for us,” Bartelt said. Heritage Homes has “the capability and bandwidth to finish a project like this.”

The balance of the Black Building remains dedicated to commercial and retail use.

Marketing the condos hasn’t started yet, but will get underway shortly with a “coming soon” listing on the area real estate Multiple Listing Service. A couple weeks later, sales will start, Bartelt said.

The Black Building was built by George M. Black. The cornerstone was laid in 1930 and construction of the eight-story structure was finished in 1931. It was a sign of Black’s confidence in and commitment to Fargo that the building was erected not long after the great stock market crash of 1929, at the start of the Great Depression.

Kilbourne Group bought the building in 2016, then began an $18 million to-the-bare-walls renovation of the 125,000-square-foot structure. That work was mostly completed in the fall of 2019.

The electrical, heating, air conditioning and ventilation systems were upgraded or replaced, and all 280 of the old single-pane windows were replaced with energy efficient windows that look much like the originals.