Case Study : Hubbingtons Furniture at the Drake Farm, North Hampton

First Impressions

Six years ago Peter Rhoades was not a fan of older buildings, and his first impression of the large barn at Drake Farm in North Hampton did not change his mind. Looking to purchase a second location for his family business, Hubbingtons Furniture, he agreed to tour the barn at his wife Nancy's insistence only after eliminating all other possibilities in their target area. The sprawling barn suffered from a leaking roof, an over-abundance of cats, and years of deferred maintenance. Rather than a furniture showroom in a perfect location, “the barn looked like a dump,” Peter remembers.

Location, Location, Location

Drake Farm has long been a prominent local landmark along Route 1, a centuries old north-south transportation route on the Seacoast. Generations of the Drake family farmed what was once an 80-acre property from the early 1700s well into the 1900s. The prosperous family tore down the original farmhouse in 1890, replacing it with the current connected configuration of a main house, a kitchen wing, a back house and the main barn, which had been partially renovated in the 1990s for retail space when Peter first looked at it.

“A Neat Project”

But the barn grew on Peter. It fit Hubbingtons' business model of providing a unique experience for customers shopping for quality American-made furniture. The project also had an emotional tug – he began to think it would be “a neat project to do” compared with building new. As he marshaled resources for the project, Peter recruited team members who he had worked with before and shared his enthusiasm for working on a historic barn.

A local bank, Federal Savings Bank – now known as First Seacoast Bank – shared the same perspective. Hubbingtons' long-established line of credit with [need name] provided much of the project's financing. Budel Construction of Rochester, well-known for structural steel construction, had built the Hubbingtons Furniture store in Barrington, but also had experience working with older barns. Owner Bob Meader was intrigued by the idea of helping to renovate the barn and generously gave up his afternoon on Christmas Eve in 2013 to explore it with Peter. They both loved what they saw and found a way to make the budget numbers work. To reduce costs, Peter and Nancy worked long hours cleaning out the barn, managing the project, completing portions of the renovation work themselves, and hiring subcontractors for plumbing, painting, and masonry work.

Enthusiasm is Contagious

Excitement about the project received also received a bump from an unanticipated source, the National Park Service. The Rhoades were interested in the potential for earning federal preservation tax credits – a program administered by the National Park Service – and brought on a preservation consultant to advise them, complete the paperwork and nominate the property to the National Register of Historic Places.  Learning the property's history and significance, the bank and the town of North Hampton were proud to partner with the National Park Service, contractors were excited to complete the high quality work required by the tax credit program, and building code and life safety officials gave special consideration to the historic nature of the barn.

The federal Preservation Tax Incentives Program provides a 20 percent federal tax credit to property owners who undertake a substantial rehabilitation of a historic building in a commercial or other income-producing use, while maintaining its historic character. Property owners work with the State Historic Preservation Office and the National Park Service to qualify for the credit, which is then granted by the Internal Revenue Service.  For the Hubbingtons project, earning the federal tax credit provided a financial cushion and enabled the scope of work to expand and include a few additional work items toward the end of construction.

The Hubbingtons project also benefited from a state incentive, NH RSA 79-D, which encourages the preservation of older barns and other agricultural outbuildings by authorizing municipalities to grant property tax relief to barn owners who demonstrate the public benefit of preserving their historic farm buildings and who agree to maintain them. Listing a property on the National Register of Historic Places is one of the ways a property owner can demonstrate the public benefit of preserving a historic barn under the state program. With the strong support of the North Hampton Heritage Commission, the North Hampton Select Board used the provisions of NH RSA 79-D to hold the assessment of the barn to its value at the time of purchase and agreed to reduce the assessed value by 75 percent over a ten year period. A preservation easement signed by the town and the Rhoades ensures the barn's continued maintenance over the ten-year period.

A Turning Point

Despite the Drake Farm's stature as a prominent town landmark, initial discussions with building code and life safety officials suggested that some fairly drastic changes to the barn might be needed in order to meet codes. The Rhoades worried that the changes would alter their business model and disqualify the project for federal preservation tax credits. Peter expanded the conversation and sought assistance from the Heritage Commission, the Town Administrator, and staff from the State Historic Preservation Office. For some time, town officials had hoped to see the Drake Farm purchased and put into a new use; they worried that code issues could be a showstopper for any potential buyer. At a second meeting with all parties at the table, the group discussed the property's significance, the guidelines of the National Park Service, and the special consideration historic properties are offered in the application of some building and life safety codes. The meeting ended on a positive note, with everyone working together toward the same goal of a successful reuse that preserved the barn's unique historic features.

Hubbingtons Furniture opened at its second location in North Hampton in 2015. The Rhoades family invites everyone to stop in and admire the beautifully renovated 100+ year old barn and shop for quality American-made furniture. For those considering a historic building project, Peter advises first-time developers to proceed with their eyes wide open, ask lots of questions, learn about available resources, and look for ways around setbacks. “Don't be despondent – it's fun to meet new people!”

Resources and For More Information:

Hubbingtons Furniture, https://hubbingtons.com/about-us/, 603-379-8989 (North Hampton), 603-664-2212 (Barrington)

First Seacoast Bank, https://www.firstseacoastbank.com/, 603-742-4680

Budel Construction, https://www.budelconstruction.com/, 603-332-1282

Preservation Consultants, https://nhpreservation.org/directory and https://www.nh.gov/nhdhr/review/architectural_history_consultants.htm

National Register of Historic Places, https://www.nh.gov/nhdhr/programs/national_register.html

Federal Preservation Tax Credits, https://www.nps.gov/tps/tax-incentives.htm

New Hampshire Barn Property Tax Incentive (NH RSA 79-D, https://nhpreservation.org/old-barn-resources-overview

Code Compliance and Historic Properties, https://www.nh.gov/nhdhr/code.htm