Historic Mill’s New Life as Affordable Housing Boosts Downtown Rebirth

Historic Mill's New Life as Affordable Housing Boosts Downtown Rebirth

The Lofts at Osage Mills, an adaptive reuse project in Bessemer City, North Carolina, adds 139 units of affordable housing and restores a prominent landmark, helping revitalize the city's downtown. Photo courtesy of WinnCompanies.

For a century, the old textile mill dominating downtown Bessemer City, North Carolina, was one of the city's most distinguished buildings, employing thousands of local workers. The mill's closure in 1995 devastated this small town of fewer than 6,000 residents, leading to decades of economic stagnation. Today, however, the building has reopened as the Lofts at Osage Mill, a 139-unit affordable housing development serving households earning up to 60 percent of the area median income. The mill's rehabilitation has catalyzed redevelopment of the entire downtown neighborhood, helping to ensure that Bessemer City will be an attractive option for workers in the booming Charlotte metropolitan area.

Project Details

The Lofts at Osage Mill, which cost $36 million to rehabilitate, came to fruition thanks to the productive relationship that the developer, WinnCompanies, enjoyed with the town and local partners. The Lofts at Osage Mill is the company's first adaptive reuse project in North Carolina, and Laura Manville, vice president for development at WinnCompanies, noted the importance of local government support and the expertise of local architects and general counsel in bringing the project to fruition.

WinnCompanies joined the project because of the developer's expertise in adaptive reuse. Local officials, meanwhile, ensured that the community's goals guided the development team, especially during periods of uncertainty, reported Joshua Ross, Bessemer City's manager.

The 5-story brick building, listed in the National Register of Historic Places, now houses 12 three-bedroom, 77 two-bedroom, and 50 one-bedroom units. At full occupancy, the building will house more than 400 people, or 7 percent of Bessemer City's population, making it a significant presence in the downtown area. The development features a business center; fitness room; and shared outdoor areas, including a picnic area and playground. The project provides 244 parking spaces.

The mill, which operated for a century before closing in 1995, was a longtime economic anchor and point of civic pride in Bessemer City. In response to widespread mill closures throughout North Carolina, the state created a historic mill tax credit rehabilitation program in 2006 that has funded the restoration of dozens of buildings and made possible the Lofts at Osage Mill. Photo courtesy of WinnCompanies.

Repurposing North Carolina's Industrial Legacy

Bessemer City's story is a common one in North Carolina. Mills and factories that produced textiles, tobacco products, and furniture were the state's largest employers in the 1980s and often were the dominant economic engines of their respective communities. During the 1990s, however, many mill owners moved their operations overseas, leaving their built legacy to slowly deteriorate from neglect. To address this issue, the North Carolina legislature approved the historic mill rehabilitation tax credit program in 2006. One study examining the program's impact through 2013 found that mill renovation generated more than $1 billion in indirect revenue for the state while costing slightly more than one-tenth of that amount in lost tax revenue. During the study period, 51 rehabilitation projects received the mill rehabilitation credit, including 24 completed developments and 27 planned projects.

Manville cites the mill rehabilitation credit as an essential financing tool that made the Lofts at Osage Mill financially feasible. Three decades of vacancy had left the mill in significant disrepair. The roof was caving in, and water and termite damage risked leaving many of the building's historic features unsalvageable, said Manville. The rehabilitation carefully preserves the building's facade and other historic features, and new skylights help illuminate the interior atria, including the original wooden beams and flooring.

Converting the historic building into affordable apartments increased the housing capacity of Bessemer City by 7 percent. Photo courtesy of WinnCompanies.

An Impactful Project

The mill building, long an iconic structure in Bessemer City's downtown, corroded the community's morale and economic development prospects as it deteriorated, Manville and Ross said. Since the project's completion in 2025, an influx of new residents has contributed to the city's tax base, and downtown commercial leasing activity has increased. The additional foot traffic and new commercial space are expected to help make future development in Bessemer City's downtown more attractive to prospective investors. Building on that success, the city is continuing to upgrade public infrastructure to accommodate anticipated future growth. Ross says that the city's downtown is experiencing new energy thanks to the renewed growth and investment that the Lofts at Osage Mill has catalyzed.

For small communities throughout North Carolina and areas with similar regional economies, the Lofts at Osage Mill's success offers a replicable model for addressing vacant industrial buildings while meeting contemporary housing needs. The project demonstrates how experienced developers, supportive local partners, and well-designed public policy tools can combine to rejuvenate abandoned structures and struggling downtown areas.