Tom Eblen: Lexington's BC Wood Properties moves headquarters from shopping center to three-story 1910 building

Herald-Leader columnist,Tom EblenFebruary 23, 2014 

A couple of years ago, Brian Wood, the founder and CEO of BC Wood Properties, took the company's president, King Offutt, down West Fourth Street to show him where Transylvania University, his alma mater, was building new athletic fields.

That part of town was beginning to see dramatic change, including conversion of the huge Eastern State Hospital property into a new campus for Bluegrass Community and Technical College.

While driving around, they turned down Henry Street, a byway that connects to West Third Street. It runs along railroad tracks and old grain elevators near Newtown Pike.

Then they saw it: a hulk of a brick building. It had been built in 1910 by the legendary millionaire horseman James Ben Ali Haggin to house his Elmendorf Coal & Feed Co. Since then, though, it had suffered at least two fires and years of vacancy.

"We had been looking for a building for a couple of years" to house the growing company's headquarters, Offutt said. "We wanted a building with character."

At the time, the company worked out of Eastland Shopping Center, one of more than 30 retail properties with 5.5 million square feet of space that BC Wood Properties now owns and manages in eight states.

"It was love at first sight," Wood said of the three-story building. "A diamond in the rough."

After they looked around the outside and in a few windows, Offutt reached for his cellphone and called the owner. "We want to buy your building," he said.

Considerable work and a couple of million dollars later, BC Wood Properties has one of the coolest office spaces in Lexington: foot-thick, exposed brick walls; warm wood everywhere, including massive hewn posts and beams; big windows that fill the space with natural light.

The company's in-house construction experts did most of the renovation. Local craftsmen made long trestle tables for shared conference space between offices and custom metal signs.

A huge wooden sliding door was preserved on one wall. Casual seating around the building includes old wooden pews bought on eBay from a Wisconsin church. The façade along Henry Street preserves the painted sign for another long-ago tenant, Central Kentucky Blue Grass Seed Co.

"It works really well," Offutt said of the building. "It's certainly improved morale among our employees. They love the building and coming to work in it."

The building had a modern metal addition on the back, which Wood turned into an employee gym and basketball court. The company pays for a fitness trainer to come in three times a week to work with employees, and the benefit has proven popular, he said.

Preserving the building's industrial character was their approach to the renovation, Wood said.

"We wanted to keep the essential historical nature, and not try to turn it into something it's not," Wood said, noting that is a key principle of the company itself.

Wood started BC Wood Properties 20 years ago and has focused on a specific niche: modest shopping centers in high-traffic locations where middle-class people shop regularly for things they need to live. He said the strategy has worked well: its properties remained more than 90 percent leased throughout the economic slump.

It also helps that the company handles all management, construction and maintenance in-house, rather than outsourcing it, to ensure that properties stay in good shape. That requires a strong team, Wood said, which includes a full-time staff of 18 in Lexington and another 14 employees elsewhere.

Last year, the company raised a $43 million private equity fund for acquisitions, about one-third of it from local investors. That allowed it to purchase 11 shopping centers in five states last year, Wood said.

Wood and Offutt are both 41-year-old Lexington natives, and they said they enjoy being part of the revitalization of Lexington's northwest end.

"This building reflects who we are," Wood said. "We didn't want a high-rise presence. We enjoy being on Henry Street beside grain bins and Blue Stallion Brewery. This is us."

Added Offutt: "This area is going to change so much in the next five years, it's going to be fun to watch."

Tom Eblen: (859) 231-1415. Email: teblen@herald-leader.com. Twitter: @tomeblen. Blog: tomeblen.bloginky.com

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