Two long abandoned and blighted motel properties on Central Avenue are about to see $20 million in new investment, as the city has finally signed agreements with developers to remake the two city-owned sites.
A development agreement has been signed with Palindrome Communities, a Portland-based developer, for the renovation of the former El Vado Motel and a new mixed-use project. The site is located near Old Town and the ABQ BioPark Aquarium and Botanic Garden.
A new rendering of the Casa Grande project, which will be built next door to the El Vado motel. The ground floor includes commercial space for restaurants. (Click here to view full slide show).A lease-purchase agreement was made by a group headed by the owners of Albuquerque-based Construct Southwest to redevelop the former De Anza Motor Lodge.
Plans for the De Anza Motor Lodge, 4301 Central Ave. NE, haven’t changed much since the developers won for their proposal last year.
The $8 million project includes turning the former motor lodge into a boutique extended stay hotel, what they’re calling a ‘condotel’ because each unit is designed more as an apartment. The site will also include a restaurant, pool and a couple units restored to their original shape.
“We had a real clear vision from the very beginning,” said Bill Smith of Construct Southwest. “We are happy that the city selected us because we honestly feel this is the best use” for the property.”
He expects construction to start in January.
On the other hand, plans and partners have changed for the $12 million renovation of El Vado Motel and Casa Grande project.
Casa Grande was initially pitched as a 60-unit workforce housing project. Palindrome originally partnered with the Sawmill Community Land Trust, then later the nonprofit Family Housing Development Corp.
Chad Rennaker, owner of Palindrome Communities, said the team wasn’t able to secure federal tax credits for the project.
Instead, Palindrome teamed up with the city’s Department of Family & Community Services, which was able to secure a different type of housing credit.
But to make the finances of the project work, they lowered the total number of units to 32, added 10 market-rate units and made the bottom floor all commercial space for restaurants and retail.
“It did take a long time, but it always takes a long time,” Rennaker said. “The project originally had a lot more housing, and we were planning to do a lot more affordable housing, but we didn’t get the federal tax credits that we had planned for the project. There was no commercial component, so we scaled down the amount of housing and added commercial.”
The El Vado Motel renovation includes a boutique motel with an amphitheater, event space, a community food court, pool and retail space. The food court will consist of “food pods” that will provide a variety of dining options.
“I don’t think there’s anything like it in Albuquerque. It’s always tough being pioneers, but that’s what we end up doing all the time,” said Rennaker, who’s company is also behind most projects in the Sawmill district.
He expects to break ground on both projects this fall.
By: Stephanie Guzman (Albuquerque Business First)
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