Driving development: Projects on US 377 in Keller, Roanoke to see major progress this year

The first phase of the Old Town Keller project brought successful businesses to the area upon its completion in 2017, according to Keller Administrative Services Manager Sarah Hensley, who has been spearheading the project. Now, the city of Keller is getting closer to starting work on Phase 2.

Phase 1 of the project cost $4.5 million, according to Aaron Rector, Keller director of administrative services and finance. A key feature included building a pedestrian promenade, which was designed to keep people from walking along US 377, Hensley said.

“It really just made the area a lot more attractive for development,” Hensley said.

Hensley said Phase 2 of the project experienced delays due to the COVID-19 pandemic. However, the second phase is back on track and will include street and drainage improvements, public parking, sidewalks, street lighting, amenities, public art, landscaping and further development of Bates Street Park.

Rachel Reynolds, Keller communication and public engagement manager, said Phase 2 of the Old Town Keller project will likely span about 10 to 15 years and include multiple steps.

The first step includes a pedestrian hybrid beacon—which is designed to help pedestrians cross busy highways by controlling traffic—a US 377 median and Bates Street reconstruction, Hensley said. The plan is to bid out those projects in early 2022, Hensley said, and then proceed with construction soon after.

The project is set to bring more to the area than just infrastructure. Hensley said the city plans to turn Bates Street into a “festival” area for hosting events.

“We also want to make Old Town kind of a destination in Keller—make it a kind of eclectic blend of restaurants, retail, different types of services, maybe some mixed-use housing,” Hensley said. “So [we want to make Old Town] kind of the shopping and entertainment space right here in Keller.”

Center Stage Keller developers making progress

In July, developers Realty Capital Management and Greystar broke ground at the intersection of US 377 and Mount Gilead Road on the first phase of the 38-acre mixed-use development known as Center Stage Keller.

In 2022, the project is expected to reach a handful of significant milestones and openings.

The first phase of the project includes Greystar’s 24,000-square-foot commercial space and 475 multifamily residences called The Lyric at Keller Center Stage, according to AJ Glass, development partner at Realty Capital Management. The first phase also includes a community lawn and surrounding infrastructure for 11,000 square feet of retail and restaurant space by Realty Capital.

JR Thulin, senior director of development at Greystar, said most of the underground infrastructure is complete, and crews are pouring the building slabs. The developers are on track to open the leasing office and clubhouse in late September, with retail buildings and the first building of units to be complete in November.

“Construction on the project is progressing along nicely,” Thulin said.

Glass said the community lawn has been graded, and utilities set for plumbing. In addition, parts of the project’s second phase, such as the single-family homes and retail, restaurant and office spaces, will either be completed or under construction by the time Phase 1 is finished in August 2023.

Keller Economic Development Director Mary Meier Culver said since the Center Stage project is being funded privately, the city’s role is to help the developers recruit businesses.

“We work closely with them in terms of providing as much guidance as we can, but ultimately, they’re going to be the ones making that decision because they are the developers,” Meier Culver said.

Peabody Hotel set to break ground in spring 2022

Cody Petree, Roanoke assistant city manager, said the agreement with The Peabody Hotel calls for an April construction start with completion expected in two years.

The Peabody Hotel could not be reached for comment by press time, but Petree said not much about the plans have changed since June, when city officials received an update from Marty Belz, chairman of Peabody Hotels and Resorts.

The project was estimated to cost a total of $144 million and is primarily being financed through bonds sold to private investors and financial institutions, according to Todd Smith of Hilltop Security, who serves as the project financing banker.

Peabody Hotel Roanoke will include 266 rooms and suites; 25,000 square feet of meeting space; a 12,000-square-foot ballroom; an upscale steakhouse; a lobby bar; a whiskey bar; a pool and deck bar and restaurant; a coffee shop and deli; a full-service Feathers Spa and Salon; and a fitness center, according to the hotel’s website.

“The Peabody Roanoke represents a critical component of the downtown mixed-use project and will create incredible synergy for the entire area,” Petree said. “The hotel project will bolster the already robust local economy and will be a legacy project for many generations to come, while also creating a prestigious tourist destination.”