The developer that recently purchased the remaining portion of Gates Corp.’s former headquarters pegged Louisville’s McStain Neighborhoods on Thursday to build homes there.
The builder’s selection is a significant step in the conversion of the industrial site near Interstate 25 and South Broadway into a mix of homes, shops, restaurants and offices. The 30-acre parcel is an important piece of the city’s transit plans because three light-rail lines are planned to intersect there.
Houston’s Lionstone Group paid nearly $16 million for most of the property in early May, according to public documents. A deal for the rest of the site is pending, but Gates must first complete an environmental cleanup.
A larger piece of the former Gates property was acquired by Cherokee Investment Group in 2001. Cherokee, known for remediating and redeveloping contaminated sites, is converting the western portion of the Gates campus into what will also be a transit-oriented, mixed-use development. The two developments are expected to be integrated.
For its part, Lionstone is buying the property from Gates after environmental issues have been resolved. The company is remodeling about 300,000 square feet of existing office buildings and is drawing up a master plan for the rest of the site, said Doug McKinnon of McKinnon & Associates. The Denver company is partnering with Lionstone to develop the project.
McStain is under contract to purchase 3.25 acres on the southern end of the site for an undisclosed price. The deal is expected to close later this summer.
The privately held builder plans to construct 42 single-family homes and duplexes. It is also expected to purchase another 5-acre portion zoned for higher-density housing. That parcel could have as many as 150 townhomes and condos, said Todd Bloom, a project manager for McStain.
Construction on the first homes is to start before the end of the year, McStain chief executive Eric Wittenberg said.
McStain was selected for the project largely because of its experience working in urban redevelopment sites, McKinnon said. The privately owned builder has participated in the redevelopment of Denver’s former Stapleton Airport and the former Lowry Air Force Base. It also is building rowhouses at Belmar, the site of Lakewood’s former Villa Italia mall.
“When you can redevelop an obsolete use, it prevents sprawl, produces renewal and creates vibrance in a community,” Wittenberg said.
Staff writer Kristi Arellano can be reached at 303-820-1902 or karellano@denverpost.com.
