The Inspirador Case Study: Historic Preservation and Adaptive Reuse of the O.S. Stapley Hardware Store
How Dilia Wood transformed the historic O.S. Stapley Hardware Store at 63 East Boston Street into Inspirador — a landmark adaptive reuse and preservation case study in Chandler, Arizona.
How one solopreneur transformed a 1924 landmark (expanded in 1945) into a multimillion-dollar ecosystem and replicable model.
Executive Snapshot
- 12,000 sq ft historic landmark transformed into a multi-tenant hub
- $1M+ post-construction valuation increase
- Rent growth: $12–16 NNN → $22+ NNN
- Unanimous City Council approval for all permits
- Operational resilience: withstood the 2008 financial crisis and the 2020 pandemic
- One of only 14 designated landmarks in downtown Chandler AZ
Table of Contents
- Why Chandler, Why This Building?
- Challenges & Approach
- Outcomes & Impact
- The Inspirador Operating System™
- Frequently Asked Questions
- About the Developer
Why Chandler, Why This Building?
At the time of acquisition, Chandler was one of the fastest-growing U.S. cities, experiencing 33% population growth in a single decade. The downtown district was undergoing comprehensive revitalization, anchored by the new $74M LEED-Certified City Hall.
The O.S. Stapley Hardware Store, constructed in 1924 and expanded in 1945, is one of only 14 recognized landmarks in the district. Its history ties to the Roosevelt Dam era and Arizona statehood, making it a rare cultural asset with deep community significance.
(About O.S. Stapley Hardware Company | Chandler AZ | Coming Soon!)
Key Metrics
- +33% population growth
- $74M LEED City Hall investment
- 1/14 designated downtown landmarks
- 1924 building construction (major expansion 1945)
Market Alignment
The project aligned with Chandler’s civic priorities—downtown revitalization, historic preservation, and economic development—critical for unanimous City Council approvals and municipal grant funding. Global employers (Intel, Microchip, PayPal, Honeywell) had built major operations locally, creating demand for cultural amenities and event spaces that didn’t yet exist downtown.
Challenges and Approach
Capital Strategy
Challenge: Secure SBA 504 financing, personal equity, and grant funding while absorbing unexpected overruns when 6,000 sq ft of roof trusses required replacement.
Solution: Leveraged SBA 504 flexibility to approve a loan increase covering overruns dollar-for-dollar, supported by full AIA documentation and revised estimates.
Adaptive Reuse & Design
Challenge: Modernize a century-old structure without losing historic character.
Solution: Architect/GC/engineering team integrated adaptive-reuse principles with code-compliant, tenant-ready systems.
Historic Preservation
Challenge: Conform to National Register standards for a contributing property while enabling modern operations.
Solution: Personally managed preservation requirements with city and state officials—preserving historic fabric while enabling commercial usability.
Governance & Approvals
Challenge: Lead public meetings and obtain multiple special use permits (assembly, alcohol, parking, construction).
Solution: Built neighborhood support, engaged officials directly, aligned the vision with community priorities.
Original Capital Stack
- 50% Bank Loan (Permanent): $1,039,900
- 30% Bank Loan (Temporary → SBA/CDC Buyout): $623,900
- 20% Borrower Equity: $460,000 cash injection
- Special Condition: $250,000 municipal historic-preservation grant awarded post-completion
This diversified structure balanced risk across stakeholders, preserved ownership control, and unlocked non-dilutive funding.
Outcomes and Impact
Economic Performance
- Lease rates increased from $12–16 NNN to $22+ NNN
- Post-construction appraisal showed $1M+ valuation lift
- Visitor traffic grew to thousands monthly, benefiting nearby restaurants/retailers
- 18-month wedding booking waitlist within the first year
Community Activation
- Meaningful increase in monthly downtown foot traffic
- Anchor venue for art walks, festivals, and civic events
- Significant job creation across internal teams and vendor networks
- Prime location adjacent to the $74M LEED City Hall
Preservation Legacy
- Revitalized one of only 14 designated downtown landmarks
- Safeguarded architectural fabric tied to Roosevelt Dam/statehood era
- Set a local precedent for adaptive reuse
- Balanced compliance with commercial viability
Operational Resilience
- Business model survived 2008 and 2020 shocks
- Multi-stream revenue (venue, catering, retail, events) stabilized cash flow
- Property continues operating under new ownership (SoHo63)
- Validated a replicable, integrated ecosystem model
The Inspirador Operating System
More than a single redevelopment, Inspirador established a turnkey framework for repeatable adaptive reuse in historic districts.
Framework Components
- City Planning Alignment – Target properties aligned with civic growth/zoning and preservation designations.
- Demand Signal Tracking – Use population and license trends, competitor analysis, and community feedback.
- Adaptive Reuse Execution – Preserve heritage while adding modern, tenant-ready infrastructure.
- Resilient Revenue Models – Design flexible spaces enabling multiple revenue streams under one roof.
Flexible Reuse (Beyond Adaptive Reuse)
Where adaptive reuse preserves buildings, flexible reuse preserves the businesses inside them.
- Venue: weddings (weekends), corporate events (weekdays), community gatherings (year-round)
- Gallery: art exhibitions + cocktail space
- Catering kitchen: on-site events + external catering
- Retail partnerships: rotate seasonally based on demand
This flexibility produced three layers of resilience: diversified revenue, pricing power, and seasonal balance.
Frequently Asked Questions
What is the Inspirador Operating System™?
A replicable framework integrating Asset (preservation + redevelopment), Model (multi-stream venue operations), and Capital (SBA financing + public-private grants) to create resilient, diversified revenue.
How does SBA 504 financing support adaptive reuse projects?
Typical structure: ~50% bank loan, ~30% SBA/CDC debenture after construction buyout, ~20% borrower equity (often higher for special-purpose historic properties). AIA documentation and checkpoints help manage risk and overruns.
Adaptive reuse vs. historic preservation—what’s the difference?
Adaptive reuse repurposes existing buildings for new uses; historic preservation retains architectural character to recognized standards. Inspirador combined both—preserving the 1924 O.S. Stapley Hardware Store while adapting it for modern venue/commercial use.
How much did the redevelopment cost?
Approx. $2.1M total financing with a bank/SBA/equity mix and a post-completion municipal preservation grant. Unexpected truss work increased costs and was addressed via SBA 504 modification.
What risks should entrepreneurs understand about SBA 504?
Key negotiations/modifications can occur between lenders and CDCs without borrower participation. Documents (e.g., Third-Party Lender Agreements, Interim Certifications) move between institutions. Build peer networks and learn how the program functions in practice—not just on paper.
Navigating Complex Financing?
I’ve been where you are. If you’re working on adaptive reuse, facing SBA 504 decisions, or tackling development hurdles, you don’t have to do it alone.
About the Developer
Dilia Wood is a solopreneur and adaptive-reuse developer who led Inspirador from acquisition through successful exit. As Founder & CEO, she managed capital structuring, construction oversight, preservation compliance, operations, and community engagement.
The project created $1M+ in equity value, revitalized one of Chandler’s 14 designated landmarks, and established a profitable model that continues today under new ownership (SoHo63).
Today, she equips entrepreneurs, developers, and civic leaders with strategies for adaptive reuse, financing navigation, and downtown revitalization.
Next in the Series
- The Inspirador Case Study → How a historic property became a thriving multi-revenue business — and why its success wasn’t enough to protect it.
- Behind the Loan (Coming Soon) → An inside look at the loan mechanics that reshaped ownership, revealed through first-hand documents and correspondence.
Legal Notice: This case study reflects personal experience supported by court-ordered documents, expert testimony, and public records spanning 2006–2013. Figures and dates derive from documented sources. This content is educational and not legal/financial advice.
© 2006–2025 Dilia Wood. All Rights Reserved.