Proposed 8-story project could bring a hotel to former Dairy Bar site in Scott’s Addition

dairybar capital square Cropped scaled

The three-building complex stands along one of Scott’s Addition’s main thoroughfares. (Mike Platania photo)

There’ a clearer picture of what’s to come for the former Dairy Bar and Tang & Biscuit properties in Scott’s Addition. 

Henrico-based developer Capital Square has filed plans to raze the respective, now-vacant restaurant and shuffleboard bar buildings at 1600 Roseneath Road and 3406 Moore St. in favor of an up-to-eight-story mixed-use building.

Plans filed with the city show the majority of the structure would house either a hotel or multifamily units, while also incorporating commercial space and a multilevel parking deck.

“While plans are preliminary, the development is anticipated to have ground-floor retail and onsite parking. Residential and hotel uses are under consideration,” Natalie Mason, Capital Square’s executive vice president of development, said in an emailed statement. 

The eight stories would include a mezzanine and roof levels.

Capital Square has been mulling the 2.25-acre lot since last summer, though at the time it was unclear exactly what the firm had in mind for the plot.

A group that included Tang & Biscuit owners Dave Gallagher and David Fratkin bought the real estate for $7 million in 2022, just a month before The Dairy Bar closed after decades in Scott’s Addition. Shortly after that Gallagher and Fratkin opened the short-lived Biscuits & Gravy in the space. 

Gallagher and Fratkin, whose main business is Dominion Payroll, also co-owned Tang & Biscuit. The shuffleboard bar abruptly closed just days after news broke about Capital Square’s initial interest in the property. 

It’s unclear whether Capital Square has the project’s real estate under contract. Mason wasn’t available for further comment and Fratkin said he couldn’t comment. 

The project site was most recently assessed by the city at a total of $10.2 million and is zoned B-7 Mixed-Use Business district, which has a five-story height restriction. Capital Square is seeking a special-use permit to allow for the additional height. The developer is represented in the SUP process by Jennifer Mullen of law firm Roth Jackson. Bohler Engineering is listed as the project’s civil engineer. 

While Capital Square is known in Scott’s Addition for its apartment developments, a hotel project isn’t completely out of left field for the Innsbrook-based firm.

Down in Charleston, South Carolina, the company is currently building a 50-room boutique hotel in partnership with Philadelphia-based developer Method Co. They announced last month that they’ve topped out the five-story hotel and aim to open it this summer.

Scott’s Addition has also been relatively short on hotels since its development boom began about a decade ago.

At least one hotel in the neighborhood has been converted into apartments and the nearest new-construction hotel is a Courtyard Marriott just west of Interstate 195Last year the shuttered Hardee’s at 921 Myers St. sold to Shamin Hotels, though the local hotelier has not filed any plans for the site. A hotel is also being planned as part of the city’s massive baseball stadium-anchored Diamond District redevelopment, though that is likely years away.

Capital Square, meanwhile, is busy with construction on another sizable development in the neighborhood. Last year it cleared the former N. Chasen & Son buildings at West Marshall Street and Altamont Avenue, and is now going vertical with a 352-unit, 7-story mixed-use building

dairybar capital square Cropped scaled

The three-building complex stands along one of Scott’s Addition’s main thoroughfares. (Mike Platania photo)

There’ a clearer picture of what’s to come for the former Dairy Bar and Tang & Biscuit properties in Scott’s Addition. 

Henrico-based developer Capital Square has filed plans to raze the respective, now-vacant restaurant and shuffleboard bar buildings at 1600 Roseneath Road and 3406 Moore St. in favor of an up-to-eight-story mixed-use building.

Plans filed with the city show the majority of the structure would house either a hotel or multifamily units, while also incorporating commercial space and a multilevel parking deck.

“While plans are preliminary, the development is anticipated to have ground-floor retail and onsite parking. Residential and hotel uses are under consideration,” Natalie Mason, Capital Square’s executive vice president of development, said in an emailed statement. 

The eight stories would include a mezzanine and roof levels.

Capital Square has been mulling the 2.25-acre lot since last summer, though at the time it was unclear exactly what the firm had in mind for the plot.

A group that included Tang & Biscuit owners Dave Gallagher and David Fratkin bought the real estate for $7 million in 2022, just a month before The Dairy Bar closed after decades in Scott’s Addition. Shortly after that Gallagher and Fratkin opened the short-lived Biscuits & Gravy in the space. 

Gallagher and Fratkin, whose main business is Dominion Payroll, also co-owned Tang & Biscuit. The shuffleboard bar abruptly closed just days after news broke about Capital Square’s initial interest in the property. 

It’s unclear whether Capital Square has the project’s real estate under contract. Mason wasn’t available for further comment and Fratkin said he couldn’t comment. 

The project site was most recently assessed by the city at a total of $10.2 million and is zoned B-7 Mixed-Use Business district, which has a five-story height restriction. Capital Square is seeking a special-use permit to allow for the additional height. The developer is represented in the SUP process by Jennifer Mullen of law firm Roth Jackson. Bohler Engineering is listed as the project’s civil engineer. 

While Capital Square is known in Scott’s Addition for its apartment developments, a hotel project isn’t completely out of left field for the Innsbrook-based firm.

Down in Charleston, South Carolina, the company is currently building a 50-room boutique hotel in partnership with Philadelphia-based developer Method Co. They announced last month that they’ve topped out the five-story hotel and aim to open it this summer.

Scott’s Addition has also been relatively short on hotels since its development boom began about a decade ago.

At least one hotel in the neighborhood has been converted into apartments and the nearest new-construction hotel is a Courtyard Marriott just west of Interstate 195Last year the shuttered Hardee’s at 921 Myers St. sold to Shamin Hotels, though the local hotelier has not filed any plans for the site. A hotel is also being planned as part of the city’s massive baseball stadium-anchored Diamond District redevelopment, though that is likely years away.

Capital Square, meanwhile, is busy with construction on another sizable development in the neighborhood. Last year it cleared the former N. Chasen & Son buildings at West Marshall Street and Altamont Avenue, and is now going vertical with a 352-unit, 7-story mixed-use building

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Carl Schwendeman
Carl Schwendeman
2 months ago

I like how this will bring fresh tax revenue for the city and it will built new housing or hotel rooms on a existing piece of low rise pavement. This is a nice project for the city.

Michael Morgan-Dodson
Michael Morgan-Dodson
2 months ago

Interestingly national chains hotel deals seem to be falling through (Museum District) with increasing costs and rates in the City then you have Shenandoah Mansion (I think that is its name) is opening this year, Shnydigz working on “Dear John” over on Cary, and Sauers talking hotel in its project too. Looks more like SUP shopping to help a land deal to close than a serious proposal for mixed use project. I am sure in the end it will be bland design almost all apartments building over a garage with 2 or 3 small 1500 sq ft spaces on Roseneath.… Read more »

William Willis
William Willis
2 months ago

Sad that the Dairy Bar (Biscuit & Gravy) and Tang & Biscuit are lost to Scott’s Addition along with Circuit barcade (Not so sad for that one) those were what made Scott’s Addition unique and a destination. Still a lot going on to bring people to SA but still said to lose some of those attractions.

Peter James
Peter James
2 months ago
Reply to  William Willis

Much as I loved the Dairy Bar back in the day, its time had come and gone. I’m 61 and – when I was a kid (as in 50-plus years ago) – my father managed a printing company a block over on Leigh Street. I spent quite a few summers hanging out in my dad’s office (my mother worked part-time there in the summertime when school was out) – and I walked around to the Dairy Bar on an almost daily basis to grab lunch and their world-famous chocolate milkshakes (they were, after all, part of Curles Neck Dairy! 🙂… Read more »

Last edited 2 months ago by Peter James
Justin Reynolds
Justin Reynolds
2 months ago
Reply to  Peter James

I completely agree on looking forward to this new development and on it being overdue. I worked in Scott’s Addition for two summers (2001-02), and by then The Dairy Bar had definitely lost its luster. All good things come to an end.

Boz Boschen
Boz Boschen
2 months ago

The Courtyard hotel is what, five blocks away? Arguably at a better location for tourists. I don’t see what’s appealing about a roof view of ACCA train yard or 195 and the Carvana tower. Did any of the water/sewer infrastructure get upgraded in Scotts Addition before the repaved the streets? How much load can things hold, or is that not a concern and the developer pays to upgrade when required?