Overview
The inspiration for the Project comes from Western Avenue Studios, an arts space created by Des Moines native Justin Mandelbaum and his partner Karl Frey. Western Avenue Studios, consisting of 143 artist studios that provide workspace to over 200 artists, has in just four years become one of the largest concentrations of artists in New England. Mandelbaum and Frey’s company, Vespera, focused on socially and environmentally conscious community developments in Connecticut and Massachusetts, and created the studios with the purpose of establishing permanent affordable artist space. Mandelbaum has since returned to Des Moines and is working with others in the community to create a similar space for the local arts.
History
Western Avenue Studios is located in a 270,000 square foot historic mill complex in Lowell, Massachusetts, a city of approximately 100,000 people located 30 miles northwest of Boston. Lowell played a leading role in the Industrial Revolution and the textile industry that boomed in New England during the nineteenth century, serving as a thriving industrial center that attracted many immigrants and migrant workers to its mills. With the decline of the New England textile industry in the twentieth century, the city deteriorated over time but has begun to rebound in recent decades.
The complex was built in stages between approximately 1900 and 1920 and had historically been a single tenant, active operating mill. Vespera (together with a partner who Vespera later bought out) purchased the entire complex in September 2004 in a short-term sale-leaseback transaction from Collins & Aikman, a former NYSE company that specialized in automotive interiors. In return for a well-below market purchase price, Collins & Aikman received a favorable lease rate and allowed Vespera the flexibility to recapture desirable space, as needed, to accommodate new tenants without reducing Collins & Aikman’s rental payment. The business plan was to slowly recapture spaces in the building and lease them at market rates, while Collins & Aikman continued to maintain the building and cover expenses.
In May 2005, Collins & Aikman unexpectedly filed bankruptcy. The former CEO eventually faced charges for fraud that were later dropped. Vespera was left with a large bankruptcy claim that was settled for six cents on the dollar and a mostly vacant building.
Creation of Artist Studios
Even prior to purchasing the complex, Vespera worked with Lowell’s Office of Economic Development to explore potential tenant options. Only one lead turned into a signed tenant, but the department described to Vespera the growing need for affordable artist studio space. While the city created an arts district in 1998 to encourage developers to build live/work condominiums, prices quickly escalated and the artists who these condominiums were originally built for had quickly become priced out of the market. Unfortunately this is not a phenomenon unique to Lowell.
In the spring of 2005, Vespera visited with local arts groups to determine demand for affordable studio space but was met with tremendous skepticism as the artists had collectively felt betrayed by developers’ empty promises. Yet the meetings convinced Vespera that affordable studio space was in high demand, and by late spring Vespera had completed a floor plan of the first floor of studio space. The company hosted a wine and cheese reception to unveil the floor plan and monthly rents, and at that reception held a lottery to pre-lease the studios. Euphoria swept over the artists, spray paint was used to show them the locations of planned studio walls, and deposits were collected for approximately 75% of the studios. By the time the initial 31 studios opened a few months later, they were fully leased.
Vespera was pleased with the initial success and realized that Western Avenue Studios was a classic example of “if you build it, they will come.” The company immediately created floor plans for a second floor of studios, which opened in January 2006, and then a third floor of studios, which opened later that summer. At this point, with a limited waiting list, Vespera was becoming concerned about the depth of the artist market and put future redevelopment plans on hold. But within a year, Vespera developed a fourth floor of studio space that opened in the summer 2007, and shortly thereafter a fifth floor that opened a few months later. As before, each floor was fully leased prior to or immediately after opening. A sixth floor was eventually opened, in addition to a small artist-run gallery, music rehearsal space and a café, bringing the total artist space to over 100,000 square feet. The rents remain well below market for artist space as Vespera has capped annual rental increases to three percent. Demand continues to be overwhelming, reaching beyond the local area and into Boston. Vacancies have consistently been filled immediately.
Western Avenue Studios has grown from an untested studio concept literally on the wrong side of the tracks to an integral part of the Lowell’s cultural life. It has become the main focus of Lowell’s annual open studios weekend, and hosts its own open studios event on the first Saturday of every month. Western Avenue Studios artists are active in the community and host or partner with many events throughout the year, including summer arts programs for children, educational programs for high school students and performance-based fundraising for HIV/AIDS patients. Many artists have joined the Western Avenue Studios Artist Association, which markets Western Avenue Studios, manages the Western Avenue Studios Loading Dock Gallery and develops partnerships with other
cultural institutions throughout Lowell.
Future
During Vespera’s ownership, the company has saved the complex from disrepair and redeveloped it into a well-recognized success story in Lowell. With the exception of an unfinished walkout basement floor, the entire portion of the complex that could be used as artist studios has been redeveloped and is fully leased. Approximately 75,000 square feet of vacant space remains and is designated for the creation of 48 affordably priced artist live/work lofts when financing permits. Future plans call for Western Avenue Studios to be sold to a non-profit entity with the specific purpose to ensure the financial feasibility of permanent affordable artist space.
