Old tobacco warehouse faces new future as apartment complex
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Click here to view the floor plans for the future Berberich Lofts apartments in Edgerton.
Click here to view the elevations for the future Berberich Lofts apartments in Edgerton.
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Dan Rinehart
EDGERTON The defunct two-story tobacco warehouse along West Fulton Street has saplings growing around its foundation.
Its doorways are choked with ivy, and brick is crumbling around the arched windows in front and around back, where the building's outer walls still bear painted murals overlooking a railroad that runs past the property.
But inside, the warehouse is bone-dry and mostly empty. The heavy wooden floors, built to handle millions of pounds of tobacco, are as sturdy as when the building was built in the 1870s. The place is a huge open space—a 19,000-square-foot blank slate.
Its owner, Edgerton businessman Dan Rinehart, says the warehouse is perfect for apartments. Or at least it will be.
With the help of a city development deal, Rinehart plans to convert the two-story building into a 16-unit, two-floor apartment complex. Before that happens, the building needs hundreds of thousands of dollars in exterior repairs and roof work, Rinehart said in an interview this week.
"This is going to be full-time work," he said.
Rinehart, a Cottage Grove resident, runs a taxidermy company out of another of Edgerton's former tobacco warehouses at 203 S. Main St. He's owned three of the former warehouses since 2003, along with several single-family rental homes in Edgerton.
Rinehart's management company, Rinehart Properties, is financing the bulk of the estimated $1.3 million project. He's partnering with Cottage Grove developer Ron Grosso and Madison firm Glueck Architects.
The city of Edgerton is helping the project through a development agreement approved last week. It includes a $260,000 economic development loan which will be paid back through tax increment financing, the city reports. Pending a review of the project by the city, construction could start this fall.
Rinehart's been waiting years to find a use for the warehouse at 60 Burdick St. It's next to another warehouse Rinehart owns at 401 W. Fulton St. At some point, he hopes to convert that building to apartments as well.
With real estate foreclosures high and home sales slow, Rinehart believes the market is ripe with former homeowners who plan to return to renting long term. He said the planned apartments, which will be 1,000 square feet with two bedrooms plus appliances, should serve that demographic.
"When someone's used to living in their own home, they want more than a cracker box," Rinehart said.
Plans for units show 10-foot ceilings. Rinehart plans to keep some of the building's original features such as giant wooden beams and brick façade walls intact and in plain view. He also plans to add a wooden deck on the front of the building and to cut in dozens of new windows to match the original, 6-foot-tall windows.
Rinehart has named the development "Berberich Lofts" in honor of Mable Berberich, an Edgerton tobacco warehouse worker he knew who died in 1991. He said rent would be about $750 a month.
City officials are trumpeting the project as part of an ongoing plan to redevelop Edgerton's downtown through reuse of the city's historic buildings. Rinehart worked with the city on an earlier TIF project to repair and renovate a 60,000-square-foot former tobacco warehouse at 203 South Main St., where he houses his taxidermy business.
He said without a city development deal, the apartment project would have been unlikely.
Rinehart said the project would prevent at least one more of the city's historic tobacco warehouses from falling to ruin.
"Another five years and I think we'd be salvaging them. That was another motivating factor to get going on this project. I didn't want to be losing these great historic buildings," Rinehart said.
City crews last week were evaluating the warehouse for water service. One told Rinehart a wall in the basement was so loose he could "throw a cat through it."
Rinehart seemed to shrug off the comment. He's aware the warehouse needs work, but he said he doesn't think it's too much to tackle.
"When somebody says I'm doing too much, I take it as a compliment these days," Rinehart said. "I consider myself blessed, not crazy, to have this opportunity."

Aug 31, 2011 at 12:45 p.m.
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Why does anyone care what this guy does with his money? I cannot believe how many negative comments I read when someone is trying to do good. If he loses big time, who's problem is it? I know I won't lose any sleep over it.
Aug 31, 2011 at 12:29 p.m.
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LydiaR (aka Debbie Downer or Negative Nancy) – Edgerton is in close proximity to Madison and can serve as a cheaper alternative to comparable apartments in Madison (for those willing to commute). I applaud Mr. Rinehart for his progressive thinking. I can only assume that his to date income from other rental properties make this a worthy investment risk.
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So because there is currently nothing there (Edgerton); Mr. Rinehart should sit back and allow someone else to take advantage of this potentially lucrative investment opportunity? By your logic Edgerton will never have anything there and any money spent in that town is money wasted?
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The economy is by no means good right now. It will come around eventually (it’s cyclical – read a book), but maybe not to the point it was 5 or 10 years ago. When the economy does come around; those investing in real estate (Mr. Rinehart) will make a ton of money.
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He may not turn a profit for a long time on this property, but I think it is a great investment.
Aug 31, 2011 at 12:06 p.m.
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LydiaR - First you say low income housing, then you say only in Chicago apartments like this will survive. Which is it? You think $750 is cheap or expensive? $750 for rent is pretty reasonable. I wouldn't consider it remotely low income or too pricey either. Not sure where you are looking at rent or mortgage prices.
Aug 31, 2011 at 12:01 p.m.
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God some of you are the biggest downers. Newsflash, not everyone is like you.
Aug 31, 2011 at 11:31 a.m.
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Way to go Dan, nice to know some people care about historic buildings. The city of Edgerton will be proud of your accomplishments.
Aug 31, 2011 at 11:21 a.m.
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How many "young professionals" do you think live in Edgerton? They may start out trying to rent them for $750 but that will end quickly. Have you been to Edgerton lately? There is NOTHING there. Yes, in Chicago apartments like that would be great...but in Edgerton? Someone has the rose colored glasses out again.
Aug 31, 2011 at 10:28 a.m.
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I think it this could be a great idea. My cousin used to live in an old factory; turned apartments in Chicago. That place was awesome – vaulted ceilings, industrial feel, many young professionals…etc. The idea seems unique to this area and it gives renters an alternative to the cookie cutter apartments that are currently available. If I didn’t have a sink hole of a mortgage right now I would be applying for a lease at a place like this.
Aug 31, 2011 at 7:33 a.m.
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Didn't I just read yesterday how apartments are hard to rent at this time. They over built over the past few yrs and no there is one to rent them. Now they want to build more to flood the market.
Aug 30, 2011 at 10:09 p.m.
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If they really want to make sure they get their apartments rented, they should make them 3 bedrooms instead of 2. I know a lot of people like myself who are forced into a smaller apartment because 3 bedroom apartments are hard to find around here.
Aug 30, 2011 at 5:45 p.m.
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Highly doubt that with only 2 bedrooms and $750 a month low income will be living there.
Aug 30, 2011 at 5:32 p.m.
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More low income housing....that will be sure to stimulate Edgerton....
Aug 30, 2011 at 4:45 p.m.
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At least some Rock County communities understand the link between historic rehabilitation and economic development. I look forward to the open house.
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