The Source on South Temple, an apartment development located at 348 E. South Temple in Downtown Salt Lake City, has been awarded both Federal and State Historic Tax Credits for its adaptive reuse of the circa-1960 IBM Building, according to a August 13 statement.
The New Formalist-style office building, constructed of brick, concrete, and glass, was added to the National Register of Historic Places in 2014 as a contributing property within the South Temple Historic District.
Developed by Woodbury Corporation with architectural firm FFKR, the community will offer 20 residences in the IBM Building and 161 residences in a newly constructed, seven-story tower.
To ensure compliance with State and Federal historic tax credit requirements, the Utah State Historic Preservation Office began working with Woodbury and the design team in late 2020. The project received final approval for both tax credit programs in June 2026, which is estimated to result in a combined $3.2 million in credits.
The preservation efforts include maintaining several character-defining features. Repeating arches on the main facade and narrow concrete columns were retained, while barrel-vaulted concrete ceilings were revealed by removing a suspended acoustic ceiling tile system.
Additionally, original terrazzo flooring in the central bay of the first floor was cleaned and rehabilitated. A new replacement railing was also constructed for the first-floor balcony to replicate the original aesthetic motif while meeting modern codes.
Amber Anderson, the Deputy State Historic Preservation Officer at the Utah State Historic Preservation Office, stated that converting historic office space into housing provides a significant return on investment. Anderson noted that residential rental use is the only way to capitalize on both large tax incentive programs simultaneously and that preserving historic spaces helps attract people who value history and architecture.
