Demolition Started at Former Dairy Bar Site
Capital Square has begun clearing the two-acre property on Roseneath Road to prepare for a new apartment project.
Updated on Oct. 13, 2026 in Commercial
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Demolition crews have started work on the two-acre site at 1600 Roseneath Road in Richmond, which previously housed the Dairy Bar diner. Capital Square purchased the property for $11.5 million in 2024 and plans to redevelop the plot.
Why it matters
The redevelopment aims to replace the former restaurant spaces with 321 apartments and 8,000 square feet of commercial space to address local housing and retail needs. This project signifies a shift in land use for the Scott's Addition neighborhood.
The new five-story, wood-frame structure will feature 321 apartments, over 100 apartment hotel rooms, and 8,000 square feet of commercial space. Capital Square acquired the two-acre property for $11.5 million in 2024.
The players
Capital Square
Capital Square is a real estate investment and development firm that purchased the Richmond site for future residential and commercial use.
S.B. Cox
S.B. Cox is the demolition contractor tasked with clearing the structures at 1600 Roseneath Road.
Richmond City Council
The Richmond City Council is the governing body that provided approval for the site's development plans in 2024.
The details
The project involves building a five-story structure with two levels of concrete podium parking on the site of the former Dairy Bar and the Tang & Biscuit venue. S.B. Cox is managing the demolition, which follows building remediation efforts completed in September 2026.
Timeline
The Dairy Bar diner closed in 2022.
Tang & Biscuit ceased operations in 2023.
Capital Square bought the site for $11.5 million in 2024.
Building remediation work occurred in September 2026.
Vertical construction is scheduled to begin in spring 2027.
Culture Shift
This development reflects the broader trend of converting established neighborhood plots into dense, mixed-use living spaces. The project marks a clear move away from the low-rise commercial legacy of Scott's Addition toward high-density housing.
Residents should anticipate increased activity and potential localized construction traffic around the Roseneath Road site throughout the coming months. The transformation of these two acres will eventually change the availability of commercial spaces and residential rental options in Scott's Addition.
The takeaway
The transformation of the Dairy Bar site underscores the rapid evolution of Richmond's commercial real estate landscape. Residents can expect to see more mixed-use projects as developers prioritize residential capacity over legacy restaurant space.
What happens next
Vertical construction is scheduled to begin at the site in spring 2027.
Further reading
Learn more about local growth patterns in the Richmond Commercial section.
Source note: This article includes information reported by Richmond BizSense.
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