From Eyesore to Renewal!
For decades, a crumbling brownstone on Duluth’s East Hillside stood as one of the city’s most notorious eyesores. Its walls were marked by neglect, its reputation tied to crime and blight. Many neighbors believed the building could never be saved.
Today that same property is being transformed into Brewery Creek, a modern apartment community designed for Duluth’s workforce. While the project is still under development, with completion scheduled for November of this year, Brewery Creek Terrace is already reshaping how people view the East Hillside.
“When we first walked through the building, a lot of people could not see past the damage,” said Mike Schraepfer of Heirloom Property Management. “But we saw its bones, we saw the history, and we knew it had the potential to be something beautiful again.”
Before & After:
A Bold Vision
The vision behind Brewery Creek Terrace was straightforward but ambitious: take one of Duluth’s worst properties and give it back to the community as something of value for the next generation.
The nineteenth century brownstone held more than a century of history. Behind the fire damage and neglect were terrace style apartments with sweeping lake views and architectural details that spoke to Duluth’s original architecture. The team at Heirloom saw the chance not only to save the building but to set an example of how restoration could meet modern housing needs.
“We did not want stabilize it as it was.” Schraepfer explained. “We wanted to thoroughly put it back together to preserve more of the old architecture while setting the building up to live another 100 years.”
Brewery Creek Terrace’s History
The building takes its name from the creek that flows between the property and the Brewery Creek Terrace Apartments, eventually emptying into Lake Superior near Fitger’s. Like much of Duluth, the 6th and 4th intersection was once a business district stop on the street car line which created walkable, character-filled business districts.
Built in 1895, the brownstone was once an example of Duluth’s architectural pride. Over time, neglect and misuse left it deteriorated to the point that it made the Duluth Preservation Alliance’s list of the city’s ten most endangered buildings. The fire that struck the property seemed to be the end. For Heirloom, it marked the beginning of a new opportunity.
Meeting a Housing Need
Duluth continues to face one of the most pressing housing shortages in Minnesota. Demand is high, especially for quality, affordable options for workers in healthcare, education, and service industries. Brewery Creek Terrace addresses that need by bringing back twenty apartments that otherwise would have been lost.
The goal is not luxury development but livable, attractive, and affordable housing that meets the needs of everyday Duluthians. By restoring rather than demolishing, the project preserves valuable housing stock while controlling costs.
“The most affordable house is an existing one,” Schraepfer said. “Every housing unit we preserve is dramatically more affordable than one we build”
Design and Living Experience
When completed this December, Brewery Creek Terrace now holds twenty apartments that blend historic character with modern amenities. Every unit will include at least one exposed masonry wall, giving residents a tangible connection to the building’s past.
Inside, finishes such as marble countertops, new flooring, and updated heating and cooling systems and energy efficient lighting systems will make each apartment feel like new construction. Laundry facilities, adequate parking, and new sprinklers and fire systems will ensure safety and convenience.
Every apartment will also feature a view of Lake Superior, turning what was once considered one of Duluth’s worst properties into a place people will be excited to call home.
“We’re building new apartments inside a historic box,” Schraepfer explained. “You get the character that cannot be replicated, paired with the comfort and reliability people expect today.”
The Challenge of Restoration
The road to redevelopment has not been simple. Restoring an endangered brownstone is far more complex than building from scratch. The structure required extensive updates, and every detail had to be brought up to code.
At times, progress was slowed by the need to balance preservation with modernization. Yet the Heirloom team remained committed. Demolition might have been easier, but it would have meant losing both the housing and the history.
“It would have been easier to tear it down and rebuild” Schraepfer said. “But people aren’t drawn to communities for their new buildings, they are drawn to the historic architecture that tells the story and that’s worth saving.”
Strengthening the Corridor
The location of Brewery Creek Terrace is particularly important. It sits along Fourth Street, an area already seeing significant investment from Essentia Health and other institutions. The restoration aligns with broader efforts to bring vitality back to the corridor.
Looking Toward the Future
With completed in December, the excitement around Brewery Creek Terrace continues to build. Applications have filled and residents are starting to move in.
Looking further ahead, Heirloom believes Brewery Creek Terrace can serve as a model for future restoration projects. Duluth’s history as a streetcar city left behind dozens of micro-neighborhoods, many of which need investment. Brewery Creek Terrace shows what is possible when local people invest in local spaces.
“Duluth is made up of many lovely small neighborhoods” Schraepfer said. “Each one has its own story. With the right care and the right projects, we can bring them back to life.”
Gratitude and Collaboration
Projects like Brewery Creek Terrace do not happen in isolation. Heirloom expresses gratitude to Essentia Health for its investment in the Fourth Street corridor and its vision for strengthening East Hillside. Support from community partners has been essential in moving the project forward.
Schraepfer also credits the broader Heirloom team. Development, construction, property management, and maintenance all played roles in bringing Brewery Creek Terrace from vision to reality.
