Ben Dogan works at 129 Salem Ave. Renovations to the building are expected to be done by the end of this year.

Once work on this 5,000-square-foot building is complete, there will be two residential spaces and two office spaces.

Jeanna Duerscherl |The Roanoke Times

Ricky Alls Jr. and Ricky Alls work on a wall at 129 Salem Ave. in Roanoke. The building has been purchased by four business partners who are renovating the space for two residential units and two office spaces.

Four partners plan to dress up what one of them describes as the ugliest building in downtown Roanoke.

They are transforming a brick structure on Salem Avenue into space for two upscale offices and living units.

Their project is one of several in this part of downtown that are joining the path to urban residential space that now winds throughout the city. Downtown condominiums and apartments are taking shape in many historic structures.

At 129 Salem Ave., much of one side of this 5,000-square-foot building was covered in concrete, and bricks were falling off in some places.

"For people coming to Roanoke for the first time, it's not too impressive," said Jim Sexton, one of the partners in Project Four LLC, an ownership group that includes Ted Martin, Dave Jones and Neal Keesee.

They purchased the building last year for $150,000, according to city real estate records.

Martin and Jones, who recently spoke about the project, would not state their renovation costs. Jones said the price is climbing.

"Your dreams get expensive," said Jones, a mortgage consultant with MLI Capital Group, which is located several doors away from his project.

Plans include replacing the building's facade with new brick and creating openings for 19 windows. A large glass window will look into a conference room on the first floor.

Inside, two residential spaces measuring 1,300 square feet each are under construction on the upper floors. Already, a buyer has signed a contract to purchase one of the units. The other will be for rent.

A downtown firm is slated to move into an office space on the building's lower level, but Martin and Jones would not disclose the future tenant's identity. There will be two office spaces for rent on the lower level, each 1,100 square feet.

The partners also would not disclose the rent rates for the residential and office spaces.

This project is situated in a city enterprise zone, making businesses located there eligible for incentives, such as facade grants and fee rebates.

The owners of the Salem Avenue project hope to benefit from at least one of those incentives. They can recoup up to 20 percent of their construction costs if 30 percent of the project houses commercial space, said Brian Brown, Roanoke's economic development administrator. Their project is on track to have 50 percent commercial space, Martin said.

They hope to complete work and open the building by the end of this year.

Despite significant growth in the number of downtown condos and apartments, Jones said he believes there is room for additional living spaces.

And with the Salem Avenue building centrally located, it's a convenient walk to many downtown businesses, he said.

Behind 129 Salem Ave., three brightly colored town houses on Norfolk Avenue are ready for move-in. But so far, they have no buyers.

Michael Porten of Roanoke and Robin Leonard of Bedford own the five high-end town houses crafted inside turn-of-the century warehouses beside Warehouse Row.

The town houses, some painted in tan, red and shades of green and named The Row by the Rail, are being listed for $599,000 and higher.

Right now, the most expensive town house has an $849,000 price tag, said Jackie Boyd, a local real estate agent who is marketing the homes.

Three of the town houses are in move-in condition, while work on the others isn't yet complete. Amenities include heated bathroom floors, "stand-up whirlpools" and balconies overlooking the railroad tracks. One of the five homes can be subdivided.

Porten, who plans to live in one of the town houses, said he isn't concerned that no one has purchased the homes.

"It's a market that obviously we've got to find the right client for."