Adaptive reuse projects are becoming a mainstream delivery strategy for Tennessee contractors. As Nashville adds roughly 100 new residents per day, average home prices have climbed from $250,000 in 2015 to more than $475,000 by early 2025, and downtown studio rents are approaching $2,000 per month. This collision of explosive demand and constrained supply is pushing adaptive reuse from niche preservation work to a central solution for the region’s housing and development needs.

Adaptive reuse projects are processes in which existing buildings are reused for a different purpose than their original use, while maintaining elements of their appearance and historic significance. This approach not only preserves cultural heritage but also offers a sustainable alternative to demolition and new construction.

This article is designed for Tennessee contractors and construction leaders who want to understand how adaptive reuse can address today’s market challenges. We’ll cover:

• A detailed case study of The Wilder, a successful adaptive reuse project in Nashville
• Key lessons and actionable steps for contractors considering similar projects
• The current Tennessee market context and why adaptive reuse matters now
• Practical guidance on project delivery, financing, and overcoming common challenges

Whether you’re a general contractor, project manager, or construction executive, this guide will help you evaluate, plan, and deliver adaptive reuse projects that meet the needs of Tennessee’s growing communities.

Key Takeaways

• The Wilder converted a blighted 1970s Super 8 motel into 97 affordable studio apartments, winning the 2025 Urban Land Institute Jack Kemp Excellence in Affordable and Workforce Housing Award—a model that Middle and East Tennessee contractors can replicate.
• Wilder Ventures and Dowdle Construction Group delivered the project on a $6.6 million budget in 13 months using design-build and a down-to-the-studs renovation approach.
• Adaptive reuse can beat ground-up construction on cost, schedule, and community impact when structure, zoning, and location align—especially for affordable housing developments.
• Tennessee’s pro-business climate and permitting reform agenda under Governor Bill Lee create favorable conditions for adaptive reuse strategies across Nashville, Knoxville, and Chattanooga.
• ABC Greater Tennessee supports contractors pursuing adaptive reuse work through advocacy, workforce development, and networking resources, providing training, advocacy, and networking opportunities that strengthen Tennessee’s construction community.

Tennessee Market Backdrop: Why Adaptive Reuse Is Moving from Niche to Necessity

The Nashville metro has been adding roughly 100 new residents per day for much of the past decade, driven by migration and job growth in healthcare, tech, and music. This population surge has created a housing shortage exceeding 100,000 units by 2025, according to estimates. Average home prices climbed from about $250,000 in 2015 to more than $475,000 by early 2025, while Class A studio rents within a few miles of downtown now near or exceed $2,000 per month.

This demand collides with constrained land availability, escalating construction costs (lumber up 30% post-2020, steel volatile), and neighborhood resistance to large greenfield multifamily developments. Urban growth boundaries and topography limit outward expansion, making infill development essential.

Adaptive reuse is the process of reusing existing buildings for a different purpose than their original use, allowing elements of their appearance and historic significance to be preserved while serving a new function. This approach is distinct from retrofitting, which focuses on optimizing efficiency without changing use. Often, it is said that the greenest building is the one already built, as reusing existing structures avoids the high carbon emissions and material waste associated with demolition and new construction.

Tennessee’s pro-business climate under Governor Bill Lee’s administration amplifies opportunity. Permitting reforms like HB 2172 mandate 180-day timelines for major projects, reducing red tape. Local zoning debates in Nashville include density bonuses, parking reductions, and tax incentives for workforce housing conversions.

The Wilder in Nashville is a live case study of how these forces come together—and the rest of this article unpacks how contractors can replicate the model.

Case Study: How The Wilder Turned a 1970s Super 8 into 97 Affordable Studios

The Wilder began as a blighted Super 8 motel near downtown Nashville, originally built in the 1970s. Pre-project, the site suffered from vandalism, water damage, and visual blight on the corridor—emblematic of 100+ obsolete commercial buildings along Tennessee interstates, potentially ripe for housing conversion.

Wilder Ventures, led by co-founders Clay Adkisson and Austen Helfrich, acquired the site with a vision to create compact, attainable studio apartments targeted to Nashville’s workforce. General contractor Dowdle Construction Group, with principal Allen Buchanan leading the construction effort, partnered in a design-build structure to control scope, budget, and schedule.

Key Project Metrics:

• 95 existing motel rooms converted into 97 fully functional studio apartments (~300 sq ft each)
• Construction budget: ~$6.6 million (~$68,000/unit or $220/sq ft)
• Construction duration: 13 months from major demo to substantial completion
• 2025 Urban Land Institute Jack Kemp Excellence in Affordable and Workforce Housing Award recipient

Target Resident Base:

• Teachers and K-12 educators
• Nurses and allied health workers
• Music industry professionals
• Hospitality staff working Broadway and nearby districts
• Students at area colleges

The Wilder is not an architectural curiosity but a prototype Middle and East Tennessee contractors can study as they evaluate older motels, aging garden office buildings, and obsolete retail space for similar conversions. Adaptive reuse can transform various types of structures into community assets.

Inside the Delivery: Design-Build, Scope, and the “Tetris” of 300-Square-Foot Units

Wilder Ventures selected a design-build approach with Dowdle Construction, and the design team engaged early to manage constructability, pricing volatility, and the unknowns inherent in a 1970s original structure. This early collaboration allowed trade-offs—opting for durable, easy-to-maintain finishes over luxury upgrades so more dollars could go toward life safety, accessibility, and building systems.

The renovation scope was essentially down to the studs: stripping interiors to framing, upgrading MEP systems, addressing structural reinforcement where needed, and reconfiguring partitions while retaining the main structural grid and exterior walkways.

Scope and Configuration Decisions:

• Original Super 8 layout of 95 motel rooms accessed by exterior corridors reconfigured into 97 studio apartments
• “Tetris game” unit planning: fitting sleeping area, bathroom, closet, and kitchenette into 300 sq ft while meeting ADA clearances
• Pocket doors and strategic swing directions to maximize clear floor space
• Compact, code-compliant shower modules to optimize bathroom footprints
• Kitchenettes placed along shared plumbing walls to reduce cost and complexity

Five types of adaptive reuse strategies include facade preservation, the integration of new structures around existing buildings, the renovation of historical buildings, the repurposing of infrastructure, and the conservation of built heritage. The Wilder primarily employed renovation while preserving the building’s exterior walkway character.

These decisions align directly with merit shop strengths: cost discipline, schedule reliability, and accountability for performance across both the design and build phases. This approach demonstrates how adaptive reuse architecture can deliver functional, code-compliant units without the premium costs of new building construction.

Construction Challenges Tennessee Contractors Should Expect on Adaptive Reuse

Contractors pursuing reuse projects on 1960s–1980s structures in Tennessee should anticipate specific challenges observed at The Wilder:

Handrail and Guardrail Retrofits:

• Original 1970s exterior handrail systems did not meet current code for height, picket spacing, or load requirements
• Became a six-figure retrofit line item
• Full replacement with concrete anchors preserved waterproofing

Energy Code Gaps:

• Original motel windows were single-pane with poor thermal performance
• Wall assemblies lacked continuous insulation and air sealing
• Targeted double-pane window replacements, interior spray-foam insulation (R-19 walls), and high-efficiency HVAC used to move toward compliance

Hidden Conditions and Budgeting:

• Corroded fasteners, inconsistent slab elevations, and water intrusion discovered after demo
• 10-15% contingency carried for unknowns
• Design-build allowed rapid decision-making to avoid schedule slips

Life Safety and Egress:

• Conversion triggered requirements for smoke detection per unit, 1-hour corridor separations, and stair upgrades
• Additional rated assemblies and door hardware upgrades added to scope

Contractors in Nashville, Knoxville, and Chattanooga should assume that 1970s and 1980s-era older buildings will require meaningful code upgrades and must reflect this in pricing, schedules, and contingency planning, backed by robust construction safety training and safety management systems that prepare teams for complex renovation environments.

Financing the Numbers: How The Wilder Made Affordable Housing Pencil Out

Successful adaptive reuse is as much a capital stack exercise as a construction problem. Financing constraints can make securing funding for complex renovations more difficult than for traditional new builds—but creative structures can overcome them.

The Wilder’s Financing Structure:

• Blended private debt from Nashville-based Truxton Trust with mission-driven capital from Boston-based BlueHub Loan Fund
• Truxton provided conventional construction and permanent loan structure at approximately 5-6% rates
• BlueHub supplied additional flexible capital oriented toward affordable housing outcomes
• Approximately 40% of the 97 units are deed-restricted for residents earning at or below 75% AMI (roughly $50,000-$60,000 for singles in Davidson County)

By converting an existing structure with a $6.6 million construction budget rather than undertaking higher-cost ground-up infill, the pro forma supported lower rents ($1,200-$1,600/unit versus $2,000+ market rate) while servicing debt and covering operating expenses.

Contractors should see financing as part of their value proposition. By offering reliable pricing and schedule performance, merit shop builders strengthen owners’ ability to secure bank and impact capital and reinforce Tennessee’s pro-growth, merit shop construction policy framework. The Urban Land Institute’s recognition signals that institutional capital and national organizations are watching successful adaptive reuse in Nashville—and may be eager to back more of it, potentially unlocking emerging tools like state tax credits.

When Adaptive Reuse Beats Ground-Up: Cost, Schedule, and Community Impact

For many Tennessee sites, adaptive reuse can deliver rentable units to the market faster, at a lower all-in cost, with greater neighborhood support. Here’s a comparison:

• Conserves resources by repurposing existing materials
• Reduces carbon emissions compared to new construction
• Helps combat urban sprawl by utilizing unused urban spaces
• Catalyzes local economies by turning vacant buildings into vibrant hubs

Adaptive reuse projects can help mitigate the housing crisis by expanding housing options more quickly and cheaply than new construction. For environmental benefits, adaptive reuse significantly reduces carbon emissions compared to new construction, as the energy consumed in creating a new structure can take 10 to 80 years to offset through efficient operations—a powerful argument for sustainable development.

Regulatory and Legislative Tailwinds in Tennessee

Tennessee’s overall pro-business posture creates favorable conditions for adaptive reuse: relatively predictable permitting processes, focus on economic development, and state-level interest in streamlining approvals.

Key Policy Factors:

• Governor Bill Lee’s permitting reform agenda reduces red tape and clarifies timelines for complex but time-sensitive work
• Local governments in Nashville, Knoxville, and Chattanooga are debating zoning laws reform, density incentives, and tax credits for affordable housing
• Chattanooga’s 2024 ordinance waives parking requirements for units under 400 square feet
• Nashville’s 2024 ADU expansions and parking reductions (from 2 spaces/unit to 1.5) benefit conversion projects

Tennessee’s legislative interest in expanding workforce housing, combined with national attention on models like The Wilder, could create additional financing tools in coming years. Merit shop contractors have an opportunity to help shape these policies—via organizations like ABC Greater Tennessee—ensuring new regulations support cost-efficient project delivery and preserve our built environment and cultural heritage for future generations.

Action Steps for Tennessee Contractors: Building Your Own Adaptive Reuse Pipeline

For construction executives evaluating adaptive reuse opportunities:

• Inventory existing relationships: Identify hospitality owners along I-24 and I-40, small office landlords in Nashville’s inner ring suburbs, and aging retail centers in Knoxville and Chattanooga ripe for conversion
• Create a screening tool: Quickly assess structure type and condition (via ASTM E2018), zoning (via GIS), parking ratios, and potential unit counts at 80-100 units/acre, and stay current on news and trends in the construction industry that influence feasibility assumptions
• Build design-build partnerships: Connect with architects and engineers experienced in motel, office, or industrial conversions for rapid response when opportunities arise
• Prepare pro forma templates: Use cost benchmarks from The Wilder ($60K-$80K/unit, $200-250/sq ft) for early lender and impact investor conversations
• Ensure workforce readiness: Adaptive reuse requires superintendents, project managers, and trades comfortable with selective demo, field-built detailing, and problem-solving around unforeseen conditions, supported by targeted construction training and development programs

The Wilder demonstrates that revitalizing old structures creates sustainable workplace opportunities and community value. Apply a quick filter to properties in your pipeline: centrally located, structurally sound, underperforming buildings with adequate parking and transit access may be strong candidates that outperform ground-up alternatives on both IRR and community reception.

How ABC Greater Tennessee Supports Adaptive Reuse and Multifamily Work

ABC Greater Tennessee is a nonprofit trade association serving merit shop commercial and industrial contractors across Middle and East Tennessee. Our role in supporting adaptive reuse and multifamily work includes and builds on championing merit shop construction across Tennessee:

• Safety training tailored to occupied or tight urban renovation sites
• Workforce development programs that upskill carpenters, electricians, and supervisors for complex renovation work, including education and apprenticeship paths for the construction industry
• Ethics training that builds owner and community trust
• Advocacy with state and local policymakers on permitting reform, housing supply, and regulatory clarity
• Networking and peer forums where members share lessons from projects like The Wilder, identify joint-venture opportunities, and connect with developers, lenders, and design partners, including high-impact ABC Greater Tennessee signature events

Connect with ABC Greater Tennessee to position your firm for the next wave of adaptive reuse, multifamily, and workforce housing work across the region. Preserving historic architecture while creating sustainable housing is both good business and good stewardship.

Frequently Asked Questions About Adaptive Reuse for Tennessee Contractors

How do I know if a building is a good candidate for adaptive reuse instead of demolition?

Strong candidates typically have a sound structural frame (concrete or steel with no major distress), a location close to jobs and transit, adequate existing parking or potential for shared parking, and zoning that allows residential or can realistically be modified. Older motels, garden offices, and low-rise commercial buildings from the 1960s-1980s along Tennessee’s major corridors often meet these tests. Early collaboration with architects, structural engineers, and code consultants is essential before committing to a guaranteed maximum price. About 70% of the I-40 corridor motels may qualify based on local audits.

What are typical per-unit costs for motel-to-apartment conversions like The Wilder?

The Wilders’ $6.6 million construction budget for 97 units implies roughly $68,000 per unit—a useful sanity check for similar projects. Expect $200-250 per square foot for motel-to-multifamily conversions, with approximately 40% of the budget allocated to MEP and interiors rather than structure and sitework. Build your own cost database from recent Tennessee reuse projects to refine benchmarks over time, as market conditions and finish levels vary.

What notable adaptive reuse projects outside Tennessee demonstrate the model’s potential?

The High Line in New York City, originally an elevated railway, was transformed into a 1.5-mile park featuring native plants and art installations. Ford’s Corktown Campus in Detroit repurposed the historic Michigan Central Station into a 30-acre innovation district with modern workspaces. The Momentary in Bentonville, Arkansas, transformed a Kraft cheese factory into a contemporary art space serving as a hub for resident artists. These examples—from music venues to modernist icons—show adaptive reuse succeeds across building types and cities from San Francisco to lower Manhattan and beyond.

How do financing partners view adaptive reuse risk compared to ground-up construction?

Lenders see both added risk (unknown conditions, code surprises) and added strengths (shorter timelines, proven locations). Transparent preconstruction work, realistic contingencies, and design-build collaboration—as demonstrated on The Wilder with Truxton Trust and BlueHub Loan Fund—help mitigate perceived risk. Contractors should participate directly in lender meetings to explain the approach, schedule controls, and risk management strategies. This positions you as a partner in making the project pencil out.

How can ABC Greater Tennessee specifically help my firm pursue more adaptive reuse work?

ABC Greater Tennessee’s recent year-in-review highlights showcase concrete wins in workforce development, safety, and advocacy that directly benefit contractors pursuing complex projects like adaptive reuse.

ABC provides safety and quality training for renovation environments, leadership and project management education for superintendents and PMs, and ethics programs that build confidence with owners and communities. Through advocacy, ABC works to maintain a predictable regulatory climate for the city and region. Through networking, we connect members with developers, lenders, and designers interested in adaptive reuse and multifamily work. Our membership brochure for ABC Greater Tennessee outlines how joining a network of 390+ companies can accelerate your firm’s growth, while our focus on building a strong foundation for the future of construction ensures long-term support for merit shop contractors. Contact ABC Greater Tennessee to discuss membership, upcoming events, and programs focused on the delivery of complex adaptive reuse—and help shape the future of construction across Middle and East Tennessee.