Four new short-term rental “Golden Lofts” above Golden Shoes on Front Street are nearly complete. The empty second floor of the historic building in the heart of downtown Traverse City has been under construction for months in a $1.6 million renovation.

“I was approached by Golden Swan Management (no relation) and we got together and talked about it,” says Bill Golden.

Katy Bertodatto, founder and managing partner of Golden Swan, and her partner Mark Keely approached Bill Golden. Initially impressed by the possibilities, Golden did some research and contacted his family. He and his brother Craig own the business, while the building itself is owned by the six Golden siblings. “We talked and started running some numbers. The six of us decided let’s do this.”

The $1.6 million renovation began late last fall with the removal of the striped façade. Since then, the warren of rooms has been opened up, with bedrooms and bathrooms in the back part of the units and the living areas and kitchens of the two two-bedroom units overlooking Front Street. The same setup exists for the two one-bedroom lofts, except they will face the back alley and beyond.

The two-bedroom units will have two bathrooms, the one-bedroom apartments a single bathroom. All units will also have washers and dryers as well as full living and kitchen areas. The two-bedroom apartments will be approximately 1,150 square feet, and the one-bedrooms 750 square feet. There will be a private entrance to the units in the alleyway, separate from the back door to Golden Shoes, with an opening off a common area upstairs for each apartment.

The location has been a shoe store since 1883 when it was Friedrich Shoes. When Golden’s father Bill and his grandfather Nathaniel bought the store in 1954, they changed the name to Golden-Friedrich Shoe. It evolved into Golden Shoes, Inc. in 1968.

The second floor space had previously been utilized by the National Cherry Festival, the Chamber of Commerce, even the Vietnam draft board. When the facade was installed, the upstairs was closed. “The space was just used for storage. Everything was shut off,” says Golden. When he says everything, that means all the utilities. Renovating it meant installing plumbing and electricity, as well as creating the apartments themselves.

Among the features are the original curved windows and the original brick walls on the front, back and sides of the building. The front windows were covered by the façade, while the walls had been covered up by plaster. They have since been restored and sealed. “That was pretty cool,” says Golden of the discovery, even though the tan bricks meant going back to the drawing board for selecting the colors in the rest of the apartments.

Golden says it was clear that the cost to renovate meant the apartments would only pay for themselves if they were rented out. “This is a business. We’re not giving away rooms to friends. If that’s what it is, I’m out,” he told his family. “It’s an investment.” Not only does he mean that in in terms of the family putting the money in and receiving rental income, it’s clear he also sees it as an investment in and for the community as well.

“It’s exciting for downtown Traverse City,” Golden says. Possibly beyond as well: He says he’s been approached by others with similar circumstances in their buildings, locally as well as other communities such Petoskey.

Golden says the renovations are scheduled to be done Aug. 16. Rental rates are still being ironed out. The lofts will be available through the Golden Swan website.

Bertodatto and Keely say the cost dictated how the apartments would be used. “This project is brand new. It (short-term rental) is a tool to get things built that otherwise wouldn’t be,” says Keely. He says it would take over 30 years at above market rates for long-term rentals to pay off the investment.

“Mark and I are passionate about long-term, but a space like this, the short-term makes it work. It gets it back on the tax rolls. It’s an investment in downtown,” says Bertodatto.

“The offseason is what’s exciting about this project,” Keely adds. “In the summer it can be families. In the winter you can have small groups, a couple or two, downtown.” He says the challenges of restoring a historical building are offset by the opportunity to bring them back to use in a way that honors their past while providing modern convenience.

Now it’s all come round again. “I could sell it. I’ve had people approach me,” Golden says. But the plan has been and continues to be to keep it all in the family. “This makes it sustainable.”