A long-shuttered school building in Duluth’s Central Hillside is getting a second life as housing, turning a once-empty property into a 99-unit apartment community.
Heirloom Property Management, a Duluth-based company that manages about 800 properties, is redeveloping the former Nettleton Elementary School at 108 E. Sixth St. The building has been closed since 2013. It was built in 1905, with additions added in 1945 and 1987, which sets the tone for the kind of renovation work that demands patience and steady coordination.
Heirloom President Mike Schraepfer described the reality of adaptive reuse projects as crews open up walls and ceilings and run into surprises that force fast decisions in the field. He said the school feels like three buildings in one, a common challenge on older facilities that have grown through multiple eras of construction.
Financing has been a key part of the deal. Local Initiatives Support Corporation-Duluth helped connect the developer with financing tools and national resources. LISC Executive Director Sumair Sheikh pointed to Duluth’s housing squeeze, including low vacancy rates and rising construction costs, and called the project an important step in bringing a dormant property back online.
The site’s path has not been simple. A previous redevelopment effort fell apart in 2016 after historic tax credits did not come together. Another concept floated in 2017 involved demolishing the building and starting over with senior housing. Schraepfer said this project is moving forward without tax-increment financing, leaning on private development and partnerships instead.
The Athlétis concept leans into fitness amenities, including a large gym, fitness areas, changing rooms, and a cold-feature sauna, plus plans to program pickleball, volleyball, and basketball. The unit mix includes studios, one-bedroom, and two-bedroom apartments, along with 87 parking spaces. More than 60% of the apartments will be designated as affordable.
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