LOUISVILLE, Ky. (Aug. 22, 2016) — Capital Investment Group Inc., an experienced and successful developer of urban residential properties, plans to build a $47-million, seven-story apartment building with top amenities and 9,000 s.f. of space for new restaurants in downtown Louisville.
Under plans filed with the Louisville Metro Government, Cincinnati-based CIG is proposing to demolish the former KentuckyOneHealth building located at 535 and 539 S. Fourth Street between Guthrie and Chestnut Streets, and redevelop the shuttered drugstore. The new development will include 237 apartments, approximately 9,000 square feet of commercial space slated for new restaurants, and use of the existing 310-space parking garage.
CIG has played an integral role in the development of Northern Kentucky’s riverfront and the company was a pioneering developer of residential units in downtown Cincinnati during the early 2000s, which helped spark the current housing boom underway in that city’s central business district.
“Capital Investment Group is excited to be part of the continuing renaissance of downtown Louisville,” said CIG President David Bastos. “Our company’s focus for the past 17 years has been urban residential development. Currently, we are seeing our residential developments and those that followed them attract new investment, employers, and restaurants to urban areas. Residents and their employers are attracted to these revitalized city centers, such as General Electric, which recently located its U.S. Global Operations Center at the Banks development in Cincinnati.
“We see the same potential in Louisville and we look forward to working with Louisville Metro Government and the region’s economic development leaders on a catalytic project that will bring investment, young professionals, empty nesters, employees, new restaurants, and excitement to Louisville’s urban core,” Bastos said.
The project will include seven three-bedroom apartments; 92 two-bedroom apartments; 124 one-bedroom apartments; and 14 efficiency apartments. Approximately 10 percent of the development will be devoted to workforce housing. The project requires both financial incentives from Louisville Metro as well as low interest bridge loans to help compensate for the extra costs of construction in a dense urban location with difficult building conditions. Incentives are being negotiated concurrently with the submission of the permit application.
Plans for the roughly two-acre site also include the parking garage as well as other amenities, such as a clubhouse, outdoor courtyard featuring a swimming pool, and new sidewalks and landscaping.
CIG’s general contractor plans to follow Louisville’s Good Faith Effort (GEE) subcontracting requirements to include Disadvantaged Business Enterprise (DBE) firms as part of the project construction.
CIG’s Northern Kentucky projects, located in Newport along the Ohio Riverfront, include the $52-million SouthShore high-rise condominium; the $22-million Vue180 upscale residential apartments; and the nearly-complete $80-million Aqua on the Levee, which are luxury apartments and a hotel development adjacent to Newport on the Levee.