Demolition Began at Former Dairy Bar Site
The Richmond redevelopment will bring 321 apartments to the two-acre property in Scott's Addition.
Updated on Oct. 13, 2026 in Commercial
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Capital Square has launched demolition at 1600 Roseneath Road, clearing the way for a new mixed-use project. The site, which formerly housed the Dairy Bar diner and Tang & Biscuit, will be transformed into a residential and commercial complex.
Why it matters
This redevelopment signals a shift in land use for the area, replacing historic restaurant spaces with high-density housing. The project aims to add 321 apartments and 8,000 square feet of commercial space to the neighborhood.
Capital Square purchased the two-acre site for $11.5 million in 2024. The approved plan calls for a five-story, wood-frame structure featuring 321 apartment units and over 100 apartment hotel rooms.
The players
Capital Square
A real estate developer and investment firm focused on acquiring and redeveloping properties in urban markets.
S.B. Cox
A demolition and site-clearing contractor providing structural removal services for commercial projects.
Richmond City Council
The local governing body responsible for approving zoning and redevelopment plans for city neighborhoods.
The details
The site preparation process follows a period of building remediation performed in September 2026. The new structure will utilize a five-story, wood-frame design built atop two levels of concrete podium parking. Demolition work is currently being managed by S.B. Cox to prepare the footprint for vertical construction.
Timeline
2022: The Dairy Bar diner closed.
2023: Tang & Biscuit ceased operations.
2024: Capital Square bought the site for $11.5 million.
September 2026: Building remediation work occurred.
Spring 2027: Vertical construction is scheduled to begin.
The Home Front
The transition of this Scott's Addition parcel follows a broader trend of repurposing established commercial hubs into high-density residential developments. This shift reflects recent Richmond City Council development approvals aimed at increasing housing capacity within existing urban infrastructure.
Residents should anticipate increased construction traffic and noise around the 1600 Roseneath Road area during the demolition and site prep phases. Homeowners in the immediate vicinity may want to check local project notices for any planned road closures or utility disruptions.
The takeaway
The redevelopment will bring a significant influx of new residents to the Scott's Addition neighborhood once construction concludes. Those interested in the site's progress can monitor city development filings for updates on the vertical build-out scheduled for next spring.
What happens next
Vertical construction is scheduled to begin in the spring of 2027.
Further reading
For updates on local site changes, visit the Richmond Commercial section.
Source note: This article includes information reported by Richmond BizSense.
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