ERIC BRADY The Roanoke Times

Roanoke's old Virginia Mills Cotton Products building off Sixth Street S.W. is under development and may offer some 108 condos.

A blighted structure on downtown Roanoke's western end is poised to take on new life, but developers say it's too early for many specifics.

The brick 106,000-square-foot Virginia Mills Cotton Products plant on Sixth Street could become home to 108 condominiums, though developer Ed Walker said the details aren't set in stone.

The project, along with others Walker is undertaking in the same area, sends redevelopment of downtown further westward -- transforming a neighborhood of vacant, run-down buildings and homes primarily valued between $50,000 to $80,000, according to assessments.

Walker purchased the former Virginia Mills building three years ago.

But only recently has work begun to ready the structure to hold the largest number of living spaces in Roanoke's downtown district.

There's also a possibility that some spaces could be offered for rent, said George Stanley, a partner with Stanley Shield LLC, the project's general contractor.

Crews are demolishing the inside of the structure, and a city building permit for $135,000 of interior work has been issued.

Walker is coming fresh off the opening of another significant downtown residential, The Hancock.

The Campbell Avenue structure houses 58 apartments, and tenants began moving into the one- and two-bedroom spaces two weeks ago.

For that project, Walker and business partner Scott Graeff will receive an $880,000 loan from the city and a loan from the Virginia Housing Development Authority. The city loan will be forgiven after 10 years if the building remains apartments.

The Hancock brings the number of apartments and condo units available in downtown to 289, according to Downtown Roanoke Inc.

Another 108 units at the former mill and dozens of other units under development at other west-end sites will dramatically increase that number.

Project will bring 'diverse' options

Walker isn't new to fashioning living space downtown.

One of his first major projects was the purchase of the former Colonial American Bank building at 204 Jefferson St. It was renovated for upscale condos, selling for at least $300,000 each. Walker lives with his family on the top floor.

On the west end of downtown, he paid approximately $850,000 for the Virginia Mills plant, also known as the Cotton Mill, according to city real estate records. The purchase is part of a mission to revitalize a section of the city that hasn't seen much new residential development.

Several years ago, a Minnesota nonprofit developer, Artspace, was eyeing the building for art studios and apartments, though it did not follow through with renovation plans there.

Other steps are in the works to extend Roanoke's downtown transformation toward the west end.

Already, some developers have big plans for three condo projects spanning parts of Fifth Street and Campbell and Salem avenues.

Brian Brown, Roanoke's economic development administrator, described Sixth Street as "a little further away from your typical downtown development."

"It'll be a continuation of a neighborhood, bringing diverse options [for housing]," he said.

Walker also to develop nearby properties

Walker is leading more than just a transformation of the former Virginia Mills site. He owns much of the Sixth Street block.

That includes a white structure at the corner of Marshall Avenue and Sixth Street, which formerly was Gary's Bar & Grill.

Walker said he wants to find a restaurateur to open a new eatery there, but plans aren't final yet. Under Cotton Mill Partners LLC, he paid $200,000 for this building last year, according to real estate records.

Beside the Virginia Mills building, Walker owns a building that he's leasing to Ed Dolinger, a local artist and teacher. Dolinger said he wants to convert this structure, formerly apartments and a thrift store, to a gallery and art studios, naming it Dialog.

These properties are part of the Old Southwest historic district, though the Virginia Mills building and the former Gary's spot are actual contributors to the district, according to the Virginia Department of Historic Resources. That means that they are eligible for historic tax credits, if Walker applies for them.

Kathy Claytor, chief operating officer at Jefferson Center, and Cal Johnson, executive director for the Roanoke Valley YMCA, said they expect investment on Sixth Street to generate activity that will benefit their businesses.

"We have 100 people that work out of the Jefferson Center every day," Claytor said. "We would love to have a restaurant within walking distance."

Johnson added: "We love the fact that development is pushing up our way."

"It's very gratifying to see someone like Ed [Walker] come in and take on some of these big projects," said Johnson, who will become chairman of Downtown Roanoke Inc. on July 1. "If private developers are doing the projects, they tend to be successful. That drives our economy."

In the past few years, Stanley Shield LLC of Richmond has developed or owned other condo and apartment spaces in downtown, including The Hancock, the Candy Factory Lofts and the Campbell Garage Lofts.

Stanley said there is room in downtown Roanoke for more residential space. The Hancock's apparent early success is an indicator, he added. On opening weekend, 79 percent of the apartments were leased.

"I think our demand at Hancock really speaks to how much demand there is," Stanley said.

But at The Hancock, rents range from $600 to $1,200, and 17 units are priced for people who earn less than Roanoke's median income.

The prices for living space at the Virginia Mills project haven't been determined.