Christina O'Connor | Special to The Roanoke Times

The apartments above the Lyric Theatre were gutted and rebuilt as luxury lofts that rent for several thousand dollars a month. Construction is nearly complete.

BLACKSBURG -- After weeks spent hidden beneath scaffolding and months tended by construction workers, a half block of College Avenue winks behind new windows and doors.

The work, part of phased renovations to several downtown buildings, includes an overhaul of upper-level apartments and improvements to storefronts that now hold Dairy Queen, the Lyric Theatre and Hanger 54.

Most construction is expected to be complete in the next month, and Lester Properties General Manager Doug Walsh said he hopes the $2.5 million face-lift will result in increased interest downtown -- both in terms of foot traffic and tenant leases.

Lester Properties is a division of the Martinsville-based Lester Group, which in 2002 paid $4.2 million for the Lyric Theatre and four other buildings.

Walsh isn't the only one hoping for downtown revitalization.

Like downtowns across the country, Blacksburg's has suffered from many vacancies and, in the early months of this year, a rash of high-visibility closings.

Linda Matney, owner of clothing store Hanger 54, formerly South End Exchange, said she used to get complaints from customers about fliers pasted to vacant store windows and the street's general appearance.

"The Lester Group was quick to listen and take action on the concerns that College Avenue was becoming a dark and dingy place," Matney said of the renovation project. "It's been a challenge to everyone on College Avenue, but I truly believe it's for the long-term enrichment of College Avenue."

When work began in March, Walsh said renovations were long overdue.

"The construction project has generated renewed interest in the street as people see it's being fixed up and money's being spent," Walsh said last week. "People have always said they liked the location, now they're realizing they like the building too."

Soon after renovations are complete, Walsh said he expects two new businesses to open -- a Chinese restaurant and a barbecue eatery.

The anchor space once home to Crossroads CDs remains vacant.

Walsh said rent for the buildings' commercial units remains in the range of $20 to $25 a square foot a year.

While improvements to commercial space has been largely limited to store facades, the 11 one- and two-bedroom units above have been gutted and redesigned as upscale lofts.

Likely the most expensive rental apartments downtown, the 558- to 956-square-foot units are priced to rent for $2,000 to $3,050 a month and feature fireplaces, skylights and granite countertops.

Walsh said some of the apartments -- now billed as the "Lofts at the Lyric" -- will be available at the end of the month.

"We've got a number of calls from people interested in seeing them," he said. "They've heard the pricing, seen the layouts and are excited to come take a look."

Before the upgrades, the apartments were priced in the $500 to $600 per month range and targeted at students.

Now, Walsh said, Lester Properties is taking aim at a different type of tenant.

"At this point, our interest has come from professionals, older people interested in living downtown, some professors working at the university, or empty nesters and couples without children maybe interested in living a little more urban life," he explained.

The Lofts are the latest addition to downtown Blacksburg's upscale housing market.

Kent Square developer Bob Pack is in his second year renting apartments in the mixed-use development. The 15 apartments in Kent Square and four in Kent Square North range in price from $800 studios to $1,600 three-bedroom apartments.

Pack said all but two of the apartments are leased and those two are empty because he is considering converting them into condos.

"The first year we leased them, they were pre-leased before we finished construction," Pack said.

That demand has continued, he added, and Kent Square and Kent Square North are now home to undergraduate and graduate students, young professionals and retirees.

Developer Steve Hill said he's seen similar interest in units in Clay Court.

The project's one- and two-bedroom and loft apartments sell for between $230,000 for a one-bedroom to $360,000 for a loft and rent for upwards of $1,100 a month.

Hill expects to begin selling and leasing the last eight of his 32 Clay Court apartments Oct. 1.

"I call them alumni crash pads," Hill said. "For Hokie alumni who come back for games, alumni meetings, board meetings, etc., who want a place in Blacksburg and want a convenient location."

Currently, 22 of the 24 available apartments are occupied -- many by alumni, but also by students and professionals.

And, like Pack, Hill sees demand for downtown housing staying strong.

"When I came to Blacksburg, I built the Jackson Street apartments as a test case," Hill said. "We've had a waiting list ever since we built those three years ago."

Expansion and improvements to downtown apartments are expected to have a positive impact on downtown businesses.

"We welcome as many residents and as much retail as we can downtown," said Kent Square's Pack. "The competition begets good retail and the more retail we have, the better off we are and the more residential we have downtown to service that retail, it's great."

Matney agreed.

"Of course any foot traffic that is generated downtown assists all the businesses downtown," she said. "And those living upstairs in the Lofts will generate traffic, whether it's friends coming over, family, those in town for Hokie games -- it all makes a difference."