7 stories of prosperity: Student housing could be shot in the arm for ailing M.L. King district

photo Douglas Heights is a new UTC dorm across M.L. King Boulevard from the university.

DOWNTOWN HOUSING DEMANDCurrent demand: 2,415 additional rental units, including 1,641 suitable for millennials and college studentsTotal annual demand: 665 to 905 new units, including:* Single-family and townhomes: 125 to 195* Condo units: 40 to 60* Rental units: 250 to 350* Student housing: 250 to 350Source: River City Co.DOUGLAS HEIGHTS BY THE NUMBERSStories: 7Square feet: 275,000 in first phaseBeds: 691 in first phase, 1,500 totalUnits: 195 in first phaseTarget rent: $650 per month, per bedStyle: Suite-style living, with individual bedrooms and a shared living and kitchen areaLocation: First phase will occupy the block between Douglas Street and University Street south of M.L. King Boulevard; phase two will expand to the lot west of Douglas Street, phase three will expand south of 10th street to former TVA site.First phase completion date: August 2016Owner: Riverside Development; president Chris CurtisSource: Riverside Development

In the gut of Chattanooga's downtown lies a barren patchwork of blighted property guarded by rusting razor wire, standing in open defiance of the growing prosperity surrounding it.

Located just south of M.L. King Boulevard -- at one time the soul of Chattanooga's thriving blues community -- the site has been the focus of a handful of renewal plans, each of which disintegrated as landowners chose instead to wait each other out.

But the wait could finally be over as an ambitious promise to build seven stories of private student housing, nearly 700 units in all, begins to take shape Monday.

The 275,000-square-foot Douglas Heights complex in its first phase will occupy nearly an entire city block between Douglas Street and University Street, and at an estimated $40 million price tag will mark the historic district's most expansive project in decades.

The privately funded development, financed by CapitalMark Bank, could turn the corner on years of missteps that have done little to revitalize the M.L. King Boulevard corridor, despite hundreds of thousands of dollars in taxpayer grants.

What's more, the first 691 beds are only the first part of a three-phase project by Riverside Development that could ultimately add 1,500 beds.

Such a ripple effect, officials say, could be exactly the boost the district needs to emulate the renaissance seen on Chattanooga's North Shore and Southside.

"I think we're going to give people some confidence in this district, but it's still going to take more investment than us," said Chris Curtis, owner of Riverside Development. "And there are a lot of people already working on that."

Though Curtis will celebrate his project's groundbreaking today at 4 p.m. along with a handful of civic and city officials, the journey to get this far and secure buy-in from key community members has been ongoing since 2012, he said.

Curtis, a Chattanooga resident who has traditionally concentrated on projects outside the city, spent a year studying the business of for-profit student housing, then another year buying and combining properties, including one tract bought at auction from TVA. He invested months briefing other property owners and asking them to consider transforming their empty buildings into services for the coming wave of new residents.

"It's a bigger day than just my project, because the M.L. King district has needed investment for a long time. This could be the shot in the arm that gets it started," Curtis said.

Already, neighboring property owners are preparing for changes on the boulevard.

Memo's, a historic restaurant known for its chopped wieners and weekend-only operating hours, is in the final stages of installing apartments in its previously unused upper floor. The owners of the Patten Building are installing a new roof. A new waffle restaurant is taking shape in the once-vacant Renaissance Square building.

Corker Properties, which owns the Volunteer Garage, is adding new commercial bays facing M.L. King Boulevard, preparing for the arrival of the Camp House coffeeshop.

Seth Champion, owner of popular chicken joint Champy's, says he's eyeing an expansion to his food preparation area and possibly adding a second story once the student housing project is finished.

Even property owners who aren't making active improvements could earn grants to improve their building facades thanks to a project spearheaded by the Benwood Foundation that makes matching funds available to landowners who commit to improving their structures.

And that's just the beginning, said Jeff Pfitzer, program officer at the Benwood Foundation.

"I think it truly means we've turned the corner," Pfitzer said. "We're really excited to see some of the long-term property owners rolling up their sleeves and getting involved, participating in the early stages of this resurgence of the district."

Moses Freeman, a city councilman who has long championed the prospect of a second chance at prosperity on M.L. King Boulevard, promised even more activity in the coming year as Douglas Heights begins to take shape.

"Everything from hamburgers and pharmaceutical supplies and medicines, drug stores, eateries, entertainment facilities, you name it, students will need it," Freeman said. "There are a lot of vacant lots and boarded-up buildings that can be repurposed in different ways."

The Douglas Heights plan calls for a courtyard swimming pool with an outdoor kitchen and game area. It will include outdoor study areas and a 10,000-square-foot clubhouse with a shared kitchen and TV area. Students will park in a secured two-story parking deck and will be protected thanks to a keycard entry system.

"We've modeled this facility not just on what you're going to find in Chattanooga, but in keeping with what you're going to find at most major universities across the country," Curtis said.

Douglas Heights marks the farthest south that UTC's campus footprint has ever expanded, as the university traditionally has resisted the urge to cross M.L. King Boulevard on its own.

Yet UTC officials on Wednesday applauded the private project.

"UTC is supportive of projects that promote development along the M.L. King corridor," university spokesman Chuck Cantrell said. "Our students, faculty and staff would benefit from businesses like restaurants and shops that could follow residential development."

James Massengill, owner of the Chatt Smokehouse on M.L. King Boulevard, said he has nothing but good things to say about the project. His hope is that he can expand fast enough to meet the demand for more BBQ and wings, he said.

"I haven't heard one thing negative about it," he said. "I think you'll see other businesses opening up. I just hope that everyone here can grow enough to keep up with it."

Contact staff writer Ellis Smith at 423-757-6315 or esmith@timesfreepress.com with tips and documents.

Upcoming Events