Capital Square’s Dairy Bar redevelopment plan gets Council go-ahead

A rendering of Capital Square’s planned development at 1600 Roseneath Road. (BizSense file photo)

One of the busiest developers in Scott’s Addition just got the green light for its latest project in the neighborhood. 

Last week Richmond City Council approved a special-use permit for Capital Square’s planned redevelopment of 1600 Roseneath Road and 3406 Moore St., the former homes of The Dairy Bar diner and shuffleboard bar Tang & Biscuit. 

Capital Square is planning to demolish the existing buildings to make way for a mixed-use development with 320 apartments and commercial space. Because the new structure would reach up to eight stories, Capital Square needed an SUP. 

Many of the Innsbrook-based firm’s past developments in Scott’s Addition were able to be built by-right, including The Otis, a nearby building that spans a whole block at 1601 Roseneath Road, and Scott’s Collection, a three-building project in the neighborhood it completed in recent years.

Natalie Mason

Natalie Mason, Capital Square’s executive vice president of development, said the firm’s first time going through the special-use permit process was a smooth one. 

“We started pretty early communicating with neighborhood stakeholders about what we were hoping to do on this site,” Mason said. “I think what helped is that we are already so active in the neighborhood, with over 600 units in Scott’s Addition. I think everyone really has a sense of what we build and how we build.”

City Council approved Capital Square’s SUP at its July 22 meeting as part of its consent agenda. 

About a third of the development’s apartment units are planned to be “hotel apartments,” which would be furnished and available for shorter stays. Mason said Capital Square thinks there’s demand for such units from business and leisure travelers, as well as those preparing to move to Richmond.  

“Maybe they don’t know where they want to live yet and they’re not ready to commit to a long-term lease, but maybe they want to try out the neighborhood. This gives them an opportunity to lease a furnished apartment for a few weeks or a few months while they explore Richmond and figure out their permanent living arrangements,” Mason said. “We’re excited about all these potential demand groups and think that this is a great location for something like this.”

Capital Square bought the 2.2-acre parcel in the spring for more than $11 million, which at the time set the local record for land sales on per-acre basis. Mason said they’d been pursuing the land for years. 

“We consider this a ‘Main and Main’ location because of how amazing the location is,” she said. “We never wanted to let this property get away.”

The Dairy Bar and Tang & Biscuit were among the tenants at the existing structures.

With the SUP in hand, Capital Square is now moving onto the next phase of project design. Mason said they haven’t selected a general contractor or architect yet, and that they’re hoping to begin construction by summer 2025. 

The firm is also busy with construction elsewhere in Scott’s Addition. It’s currently building a trio of buildings that’ll house another 352 units on North Marshall Street. Each of those buildings, which are rising on the former N. Chasen & Son complex, will reach seven stories, and Mason said the first phase has yet to top out. 

“Once the façade starts coming together, I think they’ll all look pretty cohesive,” Mason said. “We’re on track to complete that phase in summer 2025.”

Another sizable project is in the works near the old Dairy Bar building, as D.C.-based developer Hoffman & Associates is planning to build a six-story, 367-unit building on a parking lot at 3200 W. Moore St. A spokesperson for Hoffman said last week that the development team is ramping up efforts throughout the rest of this year with plans to begin construction in the first quarter of 2025. 

Over near Arthur Ashe Boulevard, fencing recently went up on the old Hardee’s at 921 Myers St., where Shamin Hotels is planning a 12-story, 299-room hotel. Shamin CEO Neil Amin said the development is still in the design phase. 

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