LOUISVILLE, Ky. (WDRB) -- Louisville-based apartment builder LDG Development is "looking at" purchasing the vacant former Bank of Louisville building at 500 West Broadway, an LDG official confirmed to WDRB News.
LDG's Christi Lanier-Robinson declined to reveal the developer's plans for the building, saying details would be released later.
LDG's interest in the 1960s-era building at 5th Street and Broadway was earlier reported by The Courier Journal on Wednesday.
The 11-story building, which is vacant save for cellular equipment on the roof, fell into foreclosure in February and is now in the hands of judicially appointed receiver after the building’s insurance and utilities were set to lapse in April, according to Jefferson Circuit Court records.
Louisville architecture firm Luckett & Farley had planned to convert the building into a 195-room hotel called Hotel Indigo. The Metro Council approved economic development incentives for the project in 2019.
But M360 Advisors, a private credit investor based in California, is foreclosing on the building to repay a $5.2 million loan that M360 made to the building's owner, Fifth & Broadway LLC, in 2019.
In a March 22 court filing, M360 said it understood that Fifth & Broadway planned a private auction of the building.
The lender said it would accept a private sale if the proceeds were enough to pay off the debt and its costs in the legal case. If not, M360 said it would pursue a court auction of the property. M360's attorney did not respond to a request for comment.
No public sale of the property has been scheduled, according to the Jefferson County Master Commissioner's Office, which conducts foreclosure sales.
If the sale materializes, LDG would add to its growing presence along Broadway. The developer already plans to build an apartment complex next door to the former bank building at the old Brown Bros. Cadillac dealership, which closed in 2021 after 75 years in business.
LDG is also planning to convert the former Greyhound station lot, located on Muhammad Ali Boulevard between 7th and 8th streets, into affordable housing. Those two projects are just pieces in part of a bigger move to bring more permanent residents to downtown Louisville.
Rebecca Fleischaker, the executive director of Louisville Downtown Partnership, said there are three pillars of a successful district: tourism, office workers, and residents.
"We want more feet on the street. That's what gives you life and vitality," Fleischaker said.
She said the aftermath of the COVID-19 pandemic is still felt in the district, and estimates that 25% of office space is still vacant.
"We who have been downtown for a while can see a difference, so I think there's urgency as we want to get that vitality back, the vibrancy on the street," Fleischaker said.
She said there is plenty of traditional office space around downtown that could be ripe for redevelopment.
"The push is because we want more people on the street because a downtown is fun when you've got lots of people walking around," Fleischaker said. "And as a bonus, we actually have the buildings to make that possible."
Back in May, the city announced the intention to redevelop eight plots of downtown land into housing, entertainment districts or other mixed-use projects. LDP is also creating the city's next 10-year plan for the area.
