This shows what the building looked like at the beginning stages of construction. 

A dilapidated building in front of the Lakeshore Inn on State Street is undergoing a makeover.

Keeley O’Brien, who purchased the hotel and the vacant building at 210 N State Street with his wife in 2022, also owns the O’Brien construction company, which is the parent company for a number of other businesses. He plans to operate the company’s headquarters out of the space once construction is finalized, likely in May or June.

The site has been used as office space for decades, but the building experienced extensive dry rot according to O’Brien and administrative coordinator Eliot Richardson. They said community members regularly ask about the project and express thanks for renovating the building.

“Hopefully it will be a shining example of a great building in this beautiful town,” O’Brien said.

The building is two stories and about 3,100 square feet. O’Brien said its occupants had complained about leaks and mold for many years and the company had to reframe the entire building.

The city issued permits for exterior and interior improvements in 2022 and Richardson said the project was delayed due to budgeting challenges.

O’Brien builds everything from tasting rooms to custom homes and hotels. It currently has an office in northwest Portland near Providence Park — as well as offices in Dundee and along the Oregon coast — but Richardson said they’re hoping to become embedded in the Lake Oswego community. About 10-20 employees working for companies such as Lucas Design Build, High Performance Walls and Open Concept Architecture will occupy the space.

“We felt like a smaller, more tight-knit community like Lake Oswego would be a really good home for us,” he said.

O’Brien said the company also plans to renovate the hotel in the coming years and emphasized how great of a location they’re in along State Street, near Oswego Lake and potential future improvements in Foothills.

“We’re trying to make a great experience where people want to come to the office, hang out and collaborate with everyone in the company,” O’Brien said.