SRM Development LLC, of Spokane, is buying the property that housed Burgans Fine Furniture, the longtime store at 1120 N. Division, for an undisclosed sum, and plans to convert it to a mixed-used development that would include offices, retail, restaurant, and financial space.


In addition to the main furniture store, SRM is buying four warehouses owned by Bruce McEachran on the block north of downtown bounded by Division and Ruby streets and by Boone and Desmet avenues. Altogether, the buildings have more than 140,000 square feet of space.


McEachran said last month that he planned to close Burgans and had agreed to sell the buildings and land and retire, but declined to identify the buyer.


Dave Tomson, development manager at SRM, says SRM is negotiating with national and local retailers and plans to keep the four-story Burgans building and possibly the warehouse buildings directly south of the store, but likely will demolish the other two warehouse buildings located at the southeast corner of the property.


Our intent right now is to definitely keep the (main) building. It has some remarkable historical qualities once the faade is removed, Tomson says. He says SRM likely would restore the original buildings exterior and convert the structure to retail spaces and offices.


He says its not clear yet whether the warehouse at the southwest corner of the property can be converted, but says SRM is working with Nystrom Olson Collins Inc., of Spokane, to design the project.


Tomson says the sale wont close until August, by which time SRM hopes to have letters of intent from national retailers that are interested in using the space. He says SRM believes the property has great potential for a mixed-used development.


Its a great site with great exposure and great traffic, he says.


Bruce McEachran, whose family has had an ownership interest in Burgans for 90 years, closed the business May 24. He says about 40 people worked at the store, and some of those employees have discussed possibly opening another furniture store, the site of which could be a building in Spokane Valley where a Spears Home Furnishings store formerly was located. McEachran still owns Capel Rug Gallery, at 1321 N. Mullan, which is in part of the former Spears building.


McEachran says Burgans had revenues of more than $5 million last year, but they were down nearly 10 percent from 2006 due to the slowing economy, and that furniture retailers around the country saw overall sales dip about 20 percent.


Contact Jeanne Gustafson at (509) 344-1264 or via e-mail at jeanneg@spokanejournal.com.