1918 Duluth bank converted into 'classic and modern' house lists for $499,000

Andrew Holperin and Jennifer Jackl love a good project.

The couple spend most of their time renovating homes, usually moving in while still working on them. But when home prices skyrocketed in 2022, the two set their sights on commercial properties with residential potential.

Enter the former Park State Bank building in Duluth, built in 1918.

"There was an immediate spark and vision," Jackl said. "When the bank presented itself, it felt like it was meant to be. We looked at each other and said, 'We can handle this.'"

The bank was in rough shape when Holperin and Jackl purchased it in 2022 for $205,000, with carpeting glued to the original floors and paint peeling. They knew they'd have to completely redo the layout to make it livable.

But the gems — such as the 12-foot windows and a bank vault with hundreds of gold-colored safety deposit boxes — made the renovation worth it.

After two years of work, they finished the one-bedroom, four-bathroom home. At 2,530 square feet, it has a whirlpool bath, tucked-in one-car garage and restored exterior brick. After listing the home for $499,000, the couple are looking for their next project, with plans to move closer to family in northwest Wisconsin.

A complete renovation

Jackl knew she wanted to preserve one feature throughout the entire renovation: the building's tall, stately windows. But working around that was tough.

The six windows center on the building's former lobby area. The only way to build a bedroom on the main floor without cutting into the windows was to place it in a corner of the building where employee offices were, Jackl said.

Once Holperin and Jackl settled on the kitchen as the focal point of the main floor, everything else fell into place. They built two lofts on opposite sides of the building's old lobby — one with an office and library, the other with a living area, full bathroom and additional room.

"It felt like a lot of wasted space with the ceiling being so high," she said. "So we thought we should build the loft areas to utilize more space."

The two hoped to save the building's original tiles and wooden floors, but glue that held down the carpeting made them too difficult to salvage. Instead, Holperin leveled the wood floors with the tile by adding plywood on top. He then laid down luxury vinyl flooring over both.

As an ode to the original white and green flooring, the couple painted the walls those colors to keep the same aesthetic.

"We drew up hundreds of sketches, trying to figure out how we wanted it to be," Jackl said. "We thought it would be amazing for entertaining to have the kitchen in the center. Then the kids can be in the TV room [in the loft] and you can still have eyes on them, or they can hang out in the library" in the other loft.

Well-fortified structure

It was quite a task to renovate the building, especially since Holperin, who works as a contractor, did most of the work, he said.

First off, there was extensive wiring for alarms (long ago disarmed) that needed removal. To put in a bathroom on the top floor, he had to drill though concrete floors. To install a vent from the exterior to the interior of the home for laundry, Holperin drilled through even thicker walls — he estimated about 24 inches.

"It was a blessing and a curse," he said. "It is definitely structurally sound and beefy ... and it took a long time to drill through."

One of the vaults became a large pantry. After polishing up old gold-colored deposit boxes inside the other, it transformed into the perfect place to store wine. There's still some original tiling in that room, making the historic feel a great conversation starter with guests.

"It was a conundrum what to do with those boxes. I thought, 'I'm not going to tear out the boxes because they're cool, plus they're heavy,'" Jackl said. "But it still needed to be a functional space, so I thought, 'Let's put a bar in there.'"

While the couple has redone just about every inch of the house, there's still a little mystery and quirk in store for the new owners.

Unopened safety deposit boxes and two of the building's original bathrooms are still in the basement. One has a large trough urinal that has been a hit with guests, Holperin said.

Listing agent Brian Rud said this was the first time he's seen such a conversion.

"Being a bank, it's fortified like crazy. Having to go though a 20-inch-plus concrete wall is a massive undertaking. It's more than you're normal renovation," Rud said. "It's an older template, and they made it look classic and modern without changing the characteristic of the building."

Brian Rud (218-340-5412, brud@mzr.com) of Messina & Associates Real Estate has the has the $499,000 listing.