Chair Rail and Kitchenette

Installing Chair Rail and Creating a Kitchenette:

We purchased our little farm a couple years ago and have been remodeling the house ever since.  We have an area in our lower level (basement) that makes no sense what so ever. This room is off the Man Cave and Mud Room, and has a winding staircase that leads upstairs.
I decided to make it a usable space by adding bookshelves and a kitchenette.
The “new” kitchenette area had to wait until we remodeled our main floor kitchen so I could reuse the old cabinets.

While waiting, I began refinishing the walls of this LL room.  One wall is drywall and 3 walls are finished with wood  paneling, in excellent condition but