EDMONDS — A controversial building in downtown Edmonds destroyed by arson nearly two years ago is rebuilt and open for business.

The Gregory, 505 Fifth Ave., is expected to have about half its 28 condominium units occupied by end of this month. Three businesses — a women’s dress shop, a jeweler and a home loan office — are planning to move into the building’s main floor in early November.

The final touches were made to the 90,000-square-foot building during the summer.

“Now that it’s finished and painted, and the exterior is on, it’s a gorgeous building,” developer Bob Gregg said.

Residents grumbled about the disruption during the building’s construction as well as the building’s size.

The Gregory was 80 percent complete when it was burned Dec. 17, 2005. It had been scheduled to open in March 2006.

Two men convicted of started the blaze were given prison time and ordered to pay millions in restitution.

In May, Daniel William Shreve, 20, of Everett was sentenced to five years in a federal prison. Random Scott Haug, 22, of Snohomish was sentenced to more than 312 years behind bars. A teenage boy accompanied the men when the fire was set.

Gregg said the condominiums in The Gregory are selling slower now than they would have if the building had been finished on time. Prices on the condominium units, originally averaging $430,000, were raised by an average of 20 percent to 25 percent after the fire.

However, he’s happy to have the building finished.

“I haven’t had anything but positive reaction,” Gregg said.

— Scott Pesznecker, Herald Writer