A tipster writes in with breaking news that tonight at 9:00pm three Downtown Louisville condo projects will be featured on national television.  HGTV’s House Hunters show will be looking at the Bycks Lofts, the Fleur de Lis on Main and the Henry Clay.  Here’s the episode’s synopsis.

“Katy and Lloyd Bosse love living in Louisville so much that they are buying a vacation home just 10 minutes from their current house. With a budget of up to $300,000 Katy and Lloyd are looking for a modern, high-end condo with at least two bedrooms and an outdoor space. Their realtor looks forward to finding the perfect unit amongst all the recent construction in the area.”

Should provide some great exposure for Louisville nationwide.  If you miss the show at 9:00 tonight, it will be rebroadcast again at midnight and then again on December 5 at 10:30pm and December 6 at 1:30am for those night owls.

Luxury apartment living is getting a boost in Old Louisville.  The old DuPont Manual High School on the corner of Brook and Oak Streets is currently under construction to transform it into DuPont Commons and the first units will be occupied this week.

The 28-unit project offers townhomes and flats ranging in prices from $525 to $725 per month with amenities such as hardwood floors, 13′ tall trey ceilings, stainless steel appliances, and spiral stairs.  Energy efficiency has been designed into each apartment.  There are four unique floor plans to choose from.  On the outside, the former school house features intricate carvings and a grand arched main entrance.

Dustin Hensley of the Lee Hensley Company explains that, soon, new landscaping and outdoor lighting will be installed and eventually a dog park will be created in the park behind the building through a partnership with the developer and Metro Parks.  Hensley, an Old Louisville resident himself, believes DuPont Commons will offer the nicest apartment living in Old Louisville.

Eight top-floor apartments will be ready to go September 1 and subsequent apartments will be placed on the market when they are ready.  The entire project is expected to be complete in less than three months.  Hensley hopes to attract young, creative tenants who can help with the continued revitalization of the Oak Street Corridor.

The Lee Hensley Company hopes to have an increased presence in Old Louisville in the coming years.  They have already renovated and fully leased a once-dilapidated house on the corner of First Street and Kentucky Street and are working with another client to convert a stone mansion on Third Street into apartments than can be converted into condos when the market improves.

In the future, Hensley says he hopes to tackle the Oak Street retail corridor to provide a more lively center for Old Louisville.  He is currently working on a proposal that will blend the historic charm of Old Louisville with more modern convenience and technology that will be announced next year.

• DuPont Commons (Official Site)
• Renovation Watch: Kentucky Street House Rehabbed (Broken Sidewalk)

Click through for more photos of DuPont Commons.

It seems every other day someone is saying the economy in Louisville is going nowhere fast, the condo market is painfully hurting, or there are way too many unoccupied condos Downtown.  While we’re certainly still feeling some of the effects of these economic times, all the negative news is getting us down.  We’ve noticed before how the small business scene in Louisville has been resilient in the face of this news (here and here), so we decided to take a closer look at the condo market in and around Downtown to uncover what’s really taking place.  We spoke with three condo developers to get their take on where the condo market in Louisville is heading.

So is there a glut of unsold condos in Downtown Louisville?  While all the developers we spoke with admit there are quite a few condos for sale, the consensus is that the majority of remaining units are situated in the upper cost limits of the  Louisville market.  No one seems too concerned that the current inventories are more than Louisville can handle and left with a feeling that Downtown is not in over its head.

Mark Isaacs of Legacy Development takes the approach of looking at the Downtown submarket as a niche of the overall housing market.  Many of the remaining condos in and around Downtown are listed for above $350,000, and Isaacs says that price point is down across the boards.  He notes that anywhere you look in Louisville, expensive condos take a while to sell.  It’s important not to beat up on Downtown’s stock of expensive condos when the same dynamics are taking place all over the region.

But even with many expensive luxury units left Downtown, many believe we’re on the right track.  David Barhorst of SoFo Development says his experiences have shown the Downtown market remains strong and Bill Weyland of City Properties Group speculates that the remaining condos could sell (or be “absorbed” in real estate jargon) in the next 18 months.  Barhorst and Weyland agree there has been some overbuilding of luxury units, but say the market isn’t as weak as the mainstream media is letting on and there are buyers out there.  It’s only a matter of time before the current stock is absorbed.

Weyland points out that Downtown living is unique from typical housing options and fundamentally based around Downtown jobs and the walkability of the neighborhood.  Someone buying a home in most of the city still must commute work, recreation, and shopping.  Living Downtown allows you to step outside your front door and walk almost anywhere you need to go.  This is a strong draw for many who desire a new level of convenience not found in driving to the strip mall.

The major hurdle for selling condos has been the ability of potential buyers to sell their suburban homes.  David Barhorst says this has been the preeminent problem for Downtown.  Plenty of people are interested in making the move, but they can’t sell their current house.  He says his experience has been that the Downtown market is stronger than its suburban counterpart as prices remain steady and have increased in some circumstances.  In many ways, as the suburban housing market improves, so will the Downtown market.

Out of town buyers have helped to fuel Downtown condo sales.  Many young and creative buyers moving to Louisville are bringing a new, urban mentality with them.  They want to take advantage of the benefits of city life and are working to create a real Downtown neighborhood.  Weyland expects this trend to continue as innovative people come to find jobs in a growing Downtown.

Everyone we spoke with says there’s still plenty of room in the market for sub-$200,000 condos.  Mark Isaacs again points to the ease of selling more affordable units not only Downtown but across Louisville.  There are few units remaining on the market in this price range and developers have noted that the most affordable units are usually the first to be sold.

Bill Weyland hopes to tap into that niche as he moves forward with several of his projects including the Edge at Liberty Green.  He has little interest in building condos priced at $500,000 or above.  Instead, his model includes an assortment of smaller, more affordable units.  If a buyer is interested in a larger condo, Weyland will combine two or sometimes three affordable units upon request.

There are challenges to overcome when building more affordable units.  There’s still a pervasive suburban mentality trying to guide the development of Downtown.  Bill Weyland says a condo in an urban environment isn’t going to be the size of a suburban McMansion and that’s a good thing.  It’s sometimes difficult to convince banks, though, that there’s a market for small, affordable units.  Weyland says his experience shows otherwise.

The cost of a Downtown condo building can present challenges, too.  Many times, the land costs and the building type drives up the overall cost resulting in more expensive condos.  That’s why a new paradigm for Downtown development that includes smaller unit sizes is so important.  Opportunities exist to find cheap land, but an urban multi-family building is constrained by a variety of economic obstacles.  For example, building codes dictate the construction method of a building by project size.  Whether it’s made of wood, steel, or concrete, the building type will affect the overal cost and risk of a project.  Renovation projects face similar challenges.

How long can we expect to feel the results of the economic downturn in Louisville?  Bill Weyland points out that Louisville never rode the crest of the real estate boom that many Southwestern cities did.  Now we’re not facing the same types of problems as other cities that underwent rapid expansion.  Weyland says Louisville is not in crisis mode.

Isaacs takes a more conservative approach.  He believes that as long as the unemployment rate remains high and foreclosures continue, we won’t see the kind of activity we’re hoping for and prices will generally be depressed in the overall market.  He speculates we could face three to five more years of depressed prices and sales across the larger residential market before everything is back to normal.

David Barhorst is happy with the Louisville market today.  He says the Louisville market is correctly positioned for growth today and the worst problems are behind us.  He speculates that in five year’s time, we’ll be in an even better position as the market grows even more bullish.

But Downtown is currently positioned to make a quick comeback.  Weyland points to progress being made on amenities such as the new arena and the general lifestyle that Downtown provides.  He says employment in the core has remained strong compared to the suburbs and notes the gains in high paying jobs in the Medical Center.  He says the trends remain strong and there’s no need to panic.

Developers in and around Downtown have been quick to respond to market forces, too.  David Barhort’s Bycks Lofts recently sold out with the help of a couple lease-to-own options and his under construction Ice House Lofts has been converted to apartments until the market improves.  Weyland says its important to manage your own inventory and keep the units leased if they won’t currently sell.

On the upside, there are plenty of deals to be found.  While many prices for condos remain the same or have risen in some cases, Mark Isaacs says you can find condos listed for 10 to 15% or sometimes up to 20% below their market rate.  He suggests that if you have a job and have some money saved up, now is the time to find an opportunity.  This is especially true for first time home buyers who can take advantage of a government sponsored $8,000 tax credit for first-time home buyers.

• Local Leaders Ponder Louisville’s Future Economy (Broken Sidewalk)

One year and two days ago today, a large three-story, brick apartment building burned for two hours before 75 firefighters extinguished the structure.  Part of the roof collapsed and six-apartments proceeded to sit charred and vacant until a few weeks ago.  Today, scaffolding surrounded the turn-of-the-century building and crews worked on framing six new luxury condos that could be ready for occupancy by June or July.

The project is being called 2015 Bonnycastle after the structure’s address and is being developed by John Gray and Stockie Rhawn.  The team bought the property last December and plans six two-bedroom, two-bath units, each at about 1,500 square feet.  Gray and Rhawn have recently developed other historic residential properties such as 325 S. Peterson Avenue and the Keat’s Bluff Condos in the Clifton & Crescent Hill neighborhoods.  John Gray also has been working to refurbish several buildings downtown including the 550 Lofts on Fifth Street and the East Market Street Lofts.  His current downtown endeavor is converting a boarded up four-story building on Market Street into the Bacon-Debrovy Lofts.

According to Paul Davis Restoration who boarded up the burnt structure on Bonnycastle Avenue last year, the previous owners were out of town on vacation when the building caught fire.  Part of the third floor was removed and a tarp was installed covering the missing roof.  One owner had wanted to proceed with rebuilding the structure while the other wanted to tear the building down.  After opposition of demolition from the neighborhood, the structure sat vacant.  There was interest from several parties to purchase the building, and now on its first post-burning birthday, 2015 Bonnycastle finds itself ready for new life.

Gray and Rhawn hope to have a model complete by April to show off the new units.  The building already has a new roof and will get all new windows (the old ones were destroyed in the fire).  Each unit will have a private 5′x10′ deck and a 1-car garage along the alley.  The building has tall ceilings including 15′ ceilings on the third floor.  While the developers plan to leave units in a state where future owners can customize the finishes, they plan modern kitchens with granite countertops, sun rooms, and 3/4″ hardwood floors.  Historic elements salvaged from the fire including fireplace mantles will be incorporated into the new building.

Over all, Rhawn told us they want the building to exhibit quality and retain its historic features.  He lives nearby in the Cherokee Triangle neighborhood and wants a project the area can be proud of.  The original hallway and stair connecting the units will be restored with salvaged doors and original woodwork and a new skylight will be installed to allow light to pour into this community space.  He said some of the old, wavy glass could be used in the building as well.  The units are being offered at a pre-construction price of $249,900 and architectural services are provided by Payne Architects of Westport Road.

While the year-old smoke stains are still visible on the front of the structure, its great to finally see the building under rehabilitation.  After major construction wraps up this summer, 2015 Bonnycastle should be looking better than it did even before the fire.  And according to the rendering posted on the project sign, the main entrance to the building will be restored to its original design intent, without the supplementary support of two aluminum columns holding up the sagging awning.

• Development Watch: Bacon-Debrovy Lofts Coming Soon (Broken Sidewalk)

Click through for more photos (Pre-fire, post-fire, and under construction).

[ Editor's Note:  This is an update of a previous article that cited information incorrectly reported by the Courier-Journal.  We gathered this new information ourselves directly from the neighborhood and developers, so hopefully this should clear up the lingering mis-information out there. ]

An entire 4.5 acre block is slated for redevelopment on the southern edge of Old Louisville adjacent to the University of Louisville.  Investment Property Advisors of Valparaiso, Indiana has put together a mixed-use proposal including retail space, a mix of market rate apartments and student housing, a landscaped interior courtyard, and underground parking in an attempt to create a vibrant University Center catering to students and the community at large.

The target block is bounded by Cardinal Boulevard and Bloom Street between Third & Fourth Streets.  Two historic brick houses and an apartment building on the site’s northeast corner will remain and be incorporated into the project.  The Masterson’s dining room and catering service, dating to the 1950s as a diner, will be demolished under the proposal.

An original plan presented to the Old Louisville neighborhood last year called for 300 housing units with 700 beds, 50,000 square feet of commercial space, and 350 to 400  parking spaces on site, mostly underground.  One of the historic buildings on site would have been demolished for surface level parking and buildings on the preliminary plan would have ranged from four to seven stories.  Working with the neighborhood, the developers slightly reduced the scale of the project to around 250 units with 600 beds, limited commercial space to 28,000 square feet, and cut parking down to less than 150 spaces.  Perimeter building heights were held at four stories with one five story structure in the middle of the block.  The project components are still being determined and are subject to change before a final plan is announced, but the developers believe a vibrant mixed-use project is the right fit for the area so close to the University.

Click through to read more and see site photos, renderings, and site plans.

The old Mom’s Music store on the corner of Frankfort Avenue and Stilz Avenue is currently under renovation to take the property back to the way it appeared in the 1930s.  The original structure is much older, but in the 1930s (when the 1-story commercial addition was build, we presume), the facade was streamlined art-deco.  The rounded corner is indicative of this style.  The project will wrap a glass and metal facade along the sidewalk enclosing a series of retail spaces.  The design is based from historic photos of the building.  Expect to see new windows on the building in about three weeks.

Weichert Realtors/ABG Properties, currently located next door, purchased the building and plans to expand into about one third of the ground floor space.  Additional ground level space will be available for retail or office space and a new upscale two-bedroom loft will be constructed in the two-story space, making the project officially mixed-use.  The loft will rent for about $1800 per month and contains 1500 square feet.

With such a highly visible location and a new streamlined-modern design, the project sounds like it will make a dramatic gateway into the Crescent Hill commercial district.  Now we just have to play the waiting game to see what retail might land here, but it’s certainly better to see the building brought back to its former glory than remain boarded up.

More photos after the click, including before renovation began.

Work on the Tonini Church Supply building on the corner of Shelby Street and Gray Street has finally begun.  We’ve been waiting to see some progress on this one for a while since the project was announced last year.  This building, believed to date from the 1890s, is one of our favorites in Louisville.  The two- to three-story brick building may not be overly ornate or really all that memorable, especially considering it’s across the street from St. Martin’s Church, but it does everything it’s supposed to as an urban building: provides mass at the corner, is scaled well, works well with its neighbors, and offers mixed-use potential.

Plans call for converting the structure into 12 apartments for the mentally handicapped.  The complete project will cost about $2 million and is being developed by New Directions Housing Corporation; financial assistance is provided by U.S. Housing & Urban Development.  The first phase of the project calls for about $360,000 to go toward structural stabilization and a new roof.  The rest of the work will follow later.

A new roof is currently being installed on the lower portion of the structure and non-original additions on the back of the building were removed.  The interior of the building has been severely water-damaged and two quite large trees are growing from its front facade, so there’s quite a bit of work to be done. All work on the project will adhere to historic Landmark renovation guidelines.  It’s nice when you’re able to breathe a sigh of relief over a building being saved that once seemed all but lost.

• New Directions Housing Corporation (Official Site)
• Revolving Doors: Will The Tonini Building Soon See Action? (Broken Sidewalk)
• Tonini Building To Be Renovated (Broken Sidewalk)
• Unintended Green Architecture: Attack Of The Trees (Broken Sidewalk)

Click through for more photos.

Plans to convert the former Marcus Lindsay Memorial Church on the corner of Main and Shelby Streets into condos will be moving ahead.  Yesterday, the Butchertown Architecture Review Committee approved proposed alterations to the historic structure after a two hour discussion.  The neighborhood has been overwhelmingly behind the project which is being developed by Pip Pullen ans Susan Swope.  The developers plan to move into one of the four units when complete.

The proposal submitted three alterations to the committee: installing glass doors at the condo entrances, building modern knee walls along Main Street for outdoor living spaces, and adding an etched glass garage door on the east side of the structure.  Despite the minor nature of these changes, committee members were conflicted as whether to apply historic preservation strictly “according to the book” or take a more lenient adaptive re-use approach.  In the end, the vote was unanimous in favor of the project with one member abstaining.

Financing has already been lined up for the project and architectural drawings are being finalized.  The developers plan to close on the property next week and begin taking bids for construction work.  Design work for the project is being done byJeff Rawlings of Architectural Artisans.  The design intent of the condos is to preserve the historic quality of the structure while inserting a hip, modern atmosphere into the living spaces, bringing new life to the abandoned structure.  The inspiration for the church-to-condo conversion came to Pullen after visiting a similar project in London.

The original Marcus Lindsay Church once featured a tall steeple on the corner.  While plans aren’t final, the idea of a glass steeple is being considered that could potentially be illuminated at night, creating a landmark gateway into the Butchertown neighborhood.  We’ll hopefully hear more on that idea down the road.

• Holy Condo Watch Update: Project Plans Unveiled (Broken Sidewalk)
• You Live Where? In A Church? Holy Condo Watch (Broken Sidewalk)