An old Dandridge school becomes new affordable living: See inside the $11.5M renovation

On a hill in Dandridge overlooking Main Street and the sparkling waters of Douglas Lake, an old brick schoolhouse left empty for decades will soon complete its transformation into affordable housing.

It was no cake walk to pull off the $11.5 million renovation to create Dandridge School Lofts, which will open this fall to people ages 55 and older who qualify based on income. It began with a dilapidated 1927 structure built by Knoxville architecture firm Barber & McMurry that had not been a school since the 1980s.

Nearly two years after Knoxville-based Duke Development and Morristown-based All-Star Construction & Demolition began preserving the school's bones while tearing out its termite- and water-damaged innards, it is once again an asset to the town and a potential model for the region.

"I like to do things that are considered impossible. It was a challenge, and we were trying to make it happen," Jeff Kenley, a partner with Duke Development and owner of All-Star, told Knox News. "It's just been a long process to get to this point, but we're getting down to the finishing touches."

When Kenley and his crew began removing rotted hardwood floors and chairs in 2022, the building had broken windows, graffiti, debris and a leaking roof. It had been the object of preservation hopes for more than a decade .

Around 60-70% of the interior and 90% of the roof were salvaged, and the building's exterior is almost entirely original, Kenley said. Much of the original hardwood floors are restored.

Before residents can move in and enjoy the high ceilings and large windows – 67 of which are original – the developers will finish installing appliances and converting parts of the auditorium and gymnasium to common areas.

The 23,500-square-foot, two-story building will have 38 units, a laundry room, an outdoor grilling and picnic space, a computer lounge and a gym. Its apartments, some in old classrooms, will have ceilings up to 21 feet tall.

Though it is for senior citizens, the Dandridge School Lofts will not be assisted living.

Salvaging old school yields surprises

Rent ranges from $607 for a studio to $945 for the one two-bedroom unit located in the former boiler room. Prospective residents cannot make more than 60% of the median income in Jefferson County, said Lou Browning, a partner with Duke Development.

"We really want to start in the affordable housing development business, and frankly, this was a really tough one," Browning told Knox News. "I think maybe some of your more experienced affordable housing developers probably shied away from it, so it's a good way for us to get our foot in the door."

The company has plans to turn historic Morristown buildings into assisted living and market-rate apartments. Its partners hope their renovation of the school could be a model for affordable housing in surrounding areas.

Knoxville is no stranger to former schools being turned into living spaces. The former Knoxville High School is now Knoxville High Apartments , and the former South High School is now South High Senior Living . Both projects were developed by Dover Signature Properties.

Restoring a historic building takes at least twice as much labor as building something new, Kenley said, and other challenges exist.

"One of the challenges is not only to restore the building, but to meet the code as well," said Firas Majeed, the project's construction manager and an alumnus of the Knoxville High Apartments development. "The other challenge: In the historic (buildings), you cannot see everything. You will find something."

Behind almost every wall and underneath almost ever floor was something the crew did not expect.

Sometimes, it was a bad thing, like rot or compromised footers that needed new concrete. Other times, it was a historic artifact of the school's past.

The developers have donated to the city of Dandridge objects like leather football helmets, an old flag and paddles used to punish students.

Historic grants, tax credits funded school renovation

In 2019, the Tennessee Housing Development Authority released its criteria for projects to receive low-income housing tax credits. Rural buildings on the historical register scored highly, and Duke Development set its eyes on the old Maury High School building.

Dandridge, settled in 1783, is the second oldest town in Tennessee. There has been a schoolhouse on the plot since before Tennessee became a state, said Tate Tatum, a partner with Duke Development. The land was home to five schools, most recently Dandridge Elementary School, which left for another facility in 1985.

To fund the project while ensuring it could stay affordable for residents, the developers took advantage of state tax credits, a state grant for historical renovation and a grant from the Federal Home Loan Bank in Ohio.

Some of the project costs will be eligible for a federal historic tax credit , offered through the State Historic Preservation Office and the National Park Service. Duke Development would like to see Tennessee promote more projects that save historic buildings.

"What would be really nice is if the state of Tennessee could come up with kind of historic credit, like the federal government has," Tatum said. "Our neighboring states, Georgia and North Carolina, both offer a statewide credit."

Around 25 of the units are set to open in late September, Tatum said, and the other 13 would open by the end of October. Potential residents interested in signing a lease at Dandridge School Lofts can contact Christy Gass from D&K Management at 865-988-4550.

Daniel Dassow is a growth and development reporter focused on technology and energy. Phone 423-637-0878. Email daniel.dassow@knoxnews.com .

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This article originally appeared on Knoxville News Sentinel: An old Dandridge school becomes new affordable living: See inside the $11.5M renovation