Louisville, Ky. (May 2021) – Privately-held real estate investment firm 29th Street Capital (29SC) announces the acquisition of The ArtSpace building – a vacant, 10-story office building located in downtown Louisville. The project marks the firm’s first adaptive reuse redevelopment, which will transform the office space into 45 one- and two-bedroom apartments. The property was built in 1925 and is connected to the historic Brown Hotel and Theatre. Haven Residential, 29SC’s in-house property management company, will oversee management and leasing.
The 46,000-square-foot property is in the heart of one of Louisville’s Qualified Opportunity Zones (QOZ). By developing in a QOZ, 29SC is investing in underserved communities, generating economic growth and providing tax benefits to investors and equity partners.
“This is a Class A location, soon to be home of Class A apartments,” said 29SC Senior Vice President of Acquisitions, and Louisville local, Josh Lindley. “Located between the Brown Hotel and Brown Theatre, we will be providing quality homes to Louisville residents that neighbor two of the city’s most historic and beloved landmarks.” He continued, “Upon completion, ArtSpace will offer the best amenity in Louisville: its Class A location. Residents will be able to enjoy an Original Hot Brown at the hotel before catching their favorite performers at the theater.”
ArtSpace is located at 323 W. Broadway, 1.5 miles from the University of Louisville and 0.5 miles from a major medical hub. There is over 18 million square feet of office space within a one-mile radius of the building.
29SC Managing Principal Robb Bollhoffer describes the project as a “rare opportunity to invest in both an underserved community as well as a historic building. With zero multifamily units under construction in downtown Louisville, these apartments will provide new homes for the steadily growing population.”
Construction is slated to begin in Summer 2021 and last 16 months. The first units are expected to be delivered within 12 months. The project plan includes the development of 47 units, improving and adding to the amenity offerings, and upgrading the lobby, windows and roof. The new units will granite countertops, stainless steel appliances, wood plank flooring and in-unit washer and dryers.
The transaction between 29SC and seller, The Fund of the Arts, closed Friday, May 21st.
In the last year, 29SC has acquired 16 conventional multifamily assets and over 4,000 units throughout the U.S. The firm continues to actively pursue additional opportunities.
Formed in 2009, 29th Street Capital is a privately held real estate investment firm that focuses on value-add and development of multifamily assets. The current portfolio consists of more than 15,000 units, having acquired over 25,000 units across its 16 offices in the U.S. Investments typically require approximately $25 million to $200 million of total capital and involve the acquisition or recapitalization of individual real estate assets, portfolios, or platforms. Learn more about 29SC at www.29thstreetcapital.com.