By Kellie Bartlett March 01, 2026

Granbury has been named “Best Historic Small Town in America” four times by USA Today in recent years, and the town’s historic square is a key part of its charm. “It really is one of the prettiest ones in Texas,” said Paula McDonald, whose renovation of a prime corner building on the square brought new life to one of the town’s treasures and earned her the 2025 William C. Jennings Award for commercial transaction of the year. “It was a really beautiful surprise,” she said, “and we are very, very honored.”

Spotting an opportunity others missed

The building had been for sale for some time. McDonald, broker/owner at Beam & Branch Realty, showed it to numerous investors and tried to get them to see the potential she saw. The upstairs space with all those windows onto the square would be perfect for a boutique hotel, and there was plenty of room downstairs for several other businesses. But there were distinct challenges, and 122 N. Crockett stayed on the market, until McDonald took matters into her own hands.

“Finally, one day,” she said, “I was sitting with my husband in our office across the way looking out the window at the building, and I said, ‘Mark, why don’t you run these numbers? When I run them, this whole project looks like a winner.’ So, he did and he said, ‘Let’s do it!’”

Planting the seeds with homegrown relationships

McDonald grew up in Granbury. During high school, she worked at the county clerk’s office, which was on the historic square. McDonald said, “I tell people I’ve gone a long way in life—right across the street!”

When she moved back to her hometown 10 years ago, she “fell in love with the history and the historic buildings.” McDonald has since worked on projects on every side of the square, and people know she’s the one to call to find out what’s going on there. Many of the deals happen quietly and privately, she said. Owners may be waiting for someone to come along who truly appreciates the property and the town before they would consider selling. “Relationships are super important,” she said.

Her relationship with fellow real estate broker Shirley Hooks made a big difference in this deal. Hooks owned the building, where she had her office for decades before retiring. “With these old buildings, it’s more than just a transaction,” McDonald said. “It’s emotional, because you put your blood, sweat, and tears into it. And this one is a real part of the fabric of the community in Granbury.” Hooks was excited about what the McDonalds wanted to do with the building and trusted them to be good stewards of the property. She also understood the challenges they faced.

Untangling the red tape

City regulations had changed over time and, once the building was sold, the new owners would need to do extensive and expensive remediation. The new fire-suppression system alone would cost about $70,000. “Knowing that ahead of time, we put it all into our pro forma,” McDonald said, “but for a lot of people, that’s cost-prohibitive, especially if they think they can just buy a building like this, turnkey it, and operate.”

New owners would also have to navigate a complex set of regulations that protect historic buildings in Granbury. The city’s Historic Preservation Commission must issue a certificate of appropriateness before any exterior changes can be made to such a building—even new paint colors, signs, or landscaping. McDonald planned to replace exterior windows that had dry rot and were leaking. She also wanted to build a wraparound balcony. Using historically accurate detail from surrounding buildings, McDonald tailored the designs so the finished project would preserve the historic character of the square.

Getting her hands dirty

McDonald closed the sale in February 2021, within 60 days of beginning negotiations, and immediately got to work on renovations. Her husband acted as general contractor and did some of the demolition himself, with the help of their son. “This was a true family event,” McDonald said. Before the holiday season that year, they were able to open a high-end home furnishings shop on the first floor. McDonald ran the store herself and was the buyer and designer. She quickly found tenants for the two other retail spaces: a beauty salon and a spa. In March of 2022, the hotel upstairs was complete and opened to the public, but not without a few hiccups along the way.

Relying on the community and giving back

“This all happened during Covid, so getting supplies and materials was a challenge. I think had we been in a big city, that would have been even more difficult, but we were able to use local suppliers for hardware and lumber and things, which also helped out our local people during a tough time.”

The project itself was a boon to the community, bringing jobs, tax revenue, and enhancements to the downtown area. The retail businesses encouraged foot traffic, and the boutique hotel attracted visitors from far and wide. All of this helped neighboring businesses and encouraged further investment in the square. “Almost every building has now been completely remodeled. We kind of set the tone, and that’s been exciting to be a part of.”

McDonald also supported many fundraising efforts in the community. Her favorite item to contribute to charity auctions was the view from the building’s balcony. “We have two big, old-fashioned parades every year in Granbury and they are packed,” McDonald said. So, the chance for a small group to watch the parade from the new, robustly engineered balcony overlooking the square was a very popular auction item and brought in significant funds. “We couldn’t believe it.”

Coming full circle

McDonald has a photo of herself as a teenager in her cheerleader uniform at Granbury’s Fourth of July parade on the historic square. In the background is what was then the Masonic lodge, at 122 N. Crockett.

Now, after her four years of stewardship, renovation, and renewal, McDonald has sold the building to one of her former schoolmates whose own boutique hotel business was a perfect fit and who loves Granbury as much as she does. The sale in late 2025 fetched one of the highest prices on the square thus far, McDonald said. “And, this was done in what was considered to be a ‘down’ market. We were thrilled because it proves that through hard work, a good business plan, and sticking to a pro forma, a good investment is a positive thing in any market.”

McDonald is grateful for the Jennings award not just because this project was so special to her, but also because she loves seeing that a small-town deal can be recognized with a prestigious award. “There’s a lot of good work going on in little communities like this one. So maybe this will bring more encouragement for some of these projects. It’s not just about the big guys,” she said, still cheerleading.

Kellie Bartlett is assistant editor for Texas REALTOR®.