Riverdale project moves forward in Roanoke

Work on the $50 million-plus Riverdale mixed-use redevelopment planned for more than 126 acres on the sprawling former campus of American Viscose, a rayon plant that closed in the late 1950s, is moving right along.

Developer Ed Walker shared a lengthy written update on the project Jan. 24 that included a rendering of a 267-unit apartment building planned for Riverdale that could begin construction late this year. That project is led by developers Joe Thompson and Tommy Spellman, according to Walker.

Other plans for Riverdale include a boutique hotel with a rooftop bar, a brewery, offices and recreation offerings.

Also in his missive, Walker noted Artspace, a Minnesota-based nonprofit that develops affordable housing for artists and creative spaces, won’t be building its first Virginia project at Riverdale after all.

During “the final stage of due diligence” on collaborating with Artspace in November and December, Walker wrote, “the Roanoke team decided to explore options other than Artspace to proceed to the next phase.”

Artspace did not respond to a request for comment.

Last year, Artspace executives requested local buy-in for the project to cover predevelopment costs: $150,000 by Nov. 1, 2024 and another $300,000 in January 2025. In October 2024, members of Roanoke’s Economic Development Authority unanimously voted to cover the $150,000 payment, using authority funds.

Duke Baldridge, a member of the city’s EDA, confirmed Friday that the funds had been returned.

“I think we explored this well-known national nonprofit developer, got real serious with them, and for whatever reason, it didn’t appear that it was going to get the return that we wanted,” Baldridge said. “Ed was very effective at getting our money returned to us.”

Walker hasn’t given up on having affordable housing for artists at Riverdale, however. “We will keep moving forward on this important community goal,” he wrote.  “2025 will be a year of tremendous progress to advance affordable housing for creatives.”

The earliest construction would likely begin on such a project would be 2026, he noted.

As part of his update, Walker also noted that some tenants who had occupied Riverdale under its previous owners had to be evicted. However, he added that more than 60 legacy tenants, including Willis Welding and Noke Vans, plan to stay.

Riverdale Southeast, the entity that owns the property, has filed to evict more than a dozen tenants, including Osmo Enterprises and Pena Trucking, since purchasing the campus in 2023, according to Roanoke City General District Court records. In his update about Riverdale’s progress, Walker said that step was taken in cases where tenants failed to pay rent, didn’t have a lease or were violating laws or fire regulations. “Sometimes you just have to ask a judge to help resolve a problem,” Walker wrote.

In other Riverdale news, during its Jan. 21 meeting, Roanoke City Council approved the rezoning of the Riverdale property under the city’s new “Urban Center” designation, which aims to create more pedestrian-friendly development.

Walker, a real estate developer known for developing apartments in historic buildings, forged a 2023 agreement with the city in which the EDA loaned Walker $10 million for Riverdale. If the project’s developers invest at least $50 million in the project through 2040, the loan will be forgiven.