Historic downtown Clinton furniture store renovated into affordable housing

By KATE COIL

TT&C Assistant Editor

A historic building in downtown Clinton has reopened with 39 affordable housing units, part of larger redevelopment efforts in the area. 

The renovation of the Daugherty Lofts is one of several rehabilitation and historic preservation projects being undertaken in downtown Clinton. Katherine Birkbeck is executive director of Historic Downtown Clinton, which is Clinton’s Main Street organization.  

“We work to revitalize the downtown area and preserve the history of it,” she said. “Those two things work together always. We had a downtown improvement grant that allowed us to restore the storefronts of five other downtown buildings. All of these buildings have stories to tell from as far back as 100 years ago. The preservation of these building allows those stories to continue instead of being completely wiped out.” 

The Daugherty Lofts story began in 1938 with the building of the Daugherty Furniture Co. An estimated 89,000 pounds of rock was quarried from the New River, a tributary of the Bit South Fork of the Cumberland, in Morgan County to build the next structure. These rocks were then brought to Clinton via the locally famous oxen team of Charley and Ball to be used in the building’s construction.  

“Every historic building has those kinds of story chiseled into the details,” Birkbeck said. “Preserving these structures to tell things like the story of Charley and Ball is something that gets everyone to appreciate this part of our community. No one builds structures like this anymore.” 

The five-story retail store that opened for business in 1942 amid the economic boom in Clinton’s downtown created by the opening of a new secret government facility just across Melton Hill Lake in Oak Ridge. J.R. Daughtery’s new Clinton furniture store opened around the same time that an influx of 75,000 new residents came to the city, buoyed by the research taking place just 10 miles to the south of Clinton’s Main Street. The third and fourth floors of the building served as apartments for scientists and workers at Oak Ridge once the facility had run out of on-site residences. 

When it was finished, the building was tied with the Magnet Mills as the largest building in downtown Clinton. The first floor sold furniture, appliances, hardware, flooring, and other household items until its closure in 1985. The building was listed on the National Register of Historic Places in 2010. 

Birkbeck said seeing the historic building be renovated into an apartment building echoes its original history providing affordable apartments in downtown Clinton. 

"A lot of downtowns went through urban renewal changes, and I don’t know that all of those changes were good,” she said. “Having apartments where people can live there only helps that goal. The developers made some really unique apartments, so every resident has light and windows. It gives them that historic feel in a newly renovated building. The developer also restored the Daugherty Furniture sign on the building, that still gives homage to the building and what it was. It’s also important to move things forward. When somebody buys a building, we don’t tell them what to do. I really appreciate the people who can buy a building and still pay homage to what it was in the past.” 

Daugherty Lofts was financed, in part, with $9.1 million in federal low-income housing tax credits and $1.4 million in historic tax credits syndicated by Hunt Capital Partners. Legacy Bank & Trust provided $10.6 million in construction financing and $2.1 million in permanent financing. Tennessee Department of Economic and Community Development provided $300,000 in grant funding. River and Valley Department provided a $650,000 soft seller note. 

"It's been a long road starting in 2020 when we won the tax credits just as COVID was getting started,” said Kent Leach, founder of Hickory Creek Capital Partners, the general partner of the development. “We've faced every adversity you could think of—rising construction costs, rising interest rates, material shortages, longer lead times, just to name a few. But seeing these doors open and people moving into their new homes, it makes me realize we've done a really good thing here. Not only have we given an old building new life, we're making these really unique living spaces available at an affordable rent. It really makes it worth all the adversity we've gone through." 

The apartment homes are equipped with central air conditioning, ceiling fans, and coat and walk-in closets, as well as in-unit appliances such as a refrigerator, microwave, and dishwasher. Spacious amenities include a community room, a computer lab, central laundry, a lounge area, and elevators. One lucky person will be leasing an apartment that still has the original vault from when the building was first opened.  

There are a mix of one, two, and three-bedroom loft-style apartment homes in the building priced for workforce families earning between 50-60% of the Area Median Income (AMI).  

“The adaptive reuse of the Daugherty building represents a testament to innovate housing solutions, which protects the structure’s historical legacy while offering new housing options for families who need an affordable place to live,” said Hunt Capital Partners chief operating officer Amy Dickerson. 

Birkbeck said she hopes the renovation brings more interest into all the things downtown Clinton has to offer.  

“As we try to grow our downtown and diversify what is downtown, in terms of making people want to be downtown more often, it’s convenient for people to be already living there,” she said. “I grew up in Clinton and love Clinton with all my heart, but I have minimal memories of being in my downtown as a kid growing up. I don’t want that to be the case for future generations. I want them to be proud of the history and the stories that were laid here a hundred years ago and continue to tell those stories. That will depend on what we do, like making downtown more walkable.” 

Having residences downtown is also a boon for the business community. 

“I think it is important to get back to the downtown being accessible not just for shopping but also for community,” she said. “We have a lot of events in our downtown area, we have our merchants, and it’s all about getting our community out and together. My hope is this will create economic development and growth for our small businesses in our downtown area. What people love about a downtown is that there are unique shops you can’t find anywhere else. I hope more and more people can find the unique things we offer in our downtown. That can benefit not just the economic development of our downtown but our city and our state.”