The century-old Paddock building in downtown Beatrice is nearing the finish line on a roughly $10 million transformation into apartments, offices and small-business space, with the newly formed Gage Development Coalition hoping to move into the building by the end of 2026. Crews are closing out the work.
From Grand Hotel to Modern Mixed-Use
The five-story Paddock Building was originally constructed in 1924. It later operated as a senior living facility.
Accounts differ on when the Kensington's run as an assisted-living facility ended — Omaha World-Herald reporting places it at 2022, while NGage has said the facility closed in 2021 amid pandemic-related challenges. The Beatrice City Council voted to purchase the property from Main Street Beatrice. Hoppe Development was approached about converting the building, with support from Rural Workforce Housing.
Apartments, Offices and Incubator Space Taking Shape
According to NGage, the finished project will include 36 affordable rental apartments supported through the Rural Workforce Housing program, plus 8,100 square feet of commercial space on the first floor. That ground floor will also house NGage's new office along with co-working and business incubator space, and the Paddock includes a corner apartment with city views as well as a ballroom on the second floor that opens down to the first. Building remediation began in May 2025, with the NGage project page projecting the new offices and co-working space completed by summer 2026 and full residential buildout scheduled for 2027.
The Beatrice Daily Sun has separately reported that development of the historic building is nearing completion and that leasing will likely be available by late October, with four incubator spaces for small-business startups planned for rent at the site. The city has also backed the project financially: in May 2025, the Beatrice City Council voted 8-0 to approve a $1.5 million LB840 economic development loan to Paddock LLC, structured as annual disbursements over nine years that may become forgivable if conditions are met, according to Citizen Portal.
A New Coalition Prepares to Move In
The Paddock's rebirth is tied closely to a bigger organizational shift in Beatrice. The Beatrice Area Chamber of Commerce, NGage and Main Street have merged into the Gage Development Coalition. Beatrice Daily Sun reported in January on plans for the merger and introduced Caleb Fjone as the coalition's executive director. Until renovation of the Paddock Kensington building is complete, the merged organization has been working out of the Carnegie Building.
Caleb Fjone has said the group hopes to occupy its new office space inside the Paddock by the end of 2026. The coalition hopes to hold a summit in the Paddock Ballroom in January 2027.
Part of a Broader Housing Push
The Paddock's conversion fits into a wider pattern of Nebraska communities repurposing aging buildings to address housing shortages. The Nebraska Examiner has described a statewide housing shortage fueled by high land, labor and construction costs, aging housing stock, and financing barriers. In Beatrice, Hoppe Development also renovated the former Stoddard Elementary School for $6.4 million, reopening it as the 25-unit Stoddard Place residences, 20 of which are reserved for seniors with incomes below the area median. Hoppe has said that conversion cost about 80% per unit of what new construction would run, and a planned second phase would add 45 townhome-style rental units at an estimated cost of $11.7 million.
