In The News

Why developers say townhomes are the next housing trend to hit Louisville

April 23, 2024 By Hagan Properties

APR
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By Bailey Loosemore – Reporter, Louisville Courier Journal
April 3, 2024

https://www.courier-journal.com/story/news/local/2024/04/03/why-new-townhome-construction-is-taking-off-in-louisville/73014831007/

Fewer Louisvillians are looking for large homes.

At least that’s the thought behind a spate of new townhome construction taking place citywide.

In April, the first tenants are expected to begin moving into the 72-unit Bull Run Townhomes in Graymoor-Devondale, and owners of the development say there’s already a waitlist for those still under construction.

A smaller complex, Wellston Place, is now selling townhomes in St. Matthews. And several proposals in the city’s pipeline include similar attached single-family homes, which are connected by exterior walls and often have smaller yards to increase density while still giving residents the feel of having their own space.

Local developers say shifts in mindsets and home prices have led townhomes to attract wider audiences than before. And such construction has taken off nationally, with townhouses accounting for almost 20% of total housing starts at the end of 2023, according to the National Association of Home Builders.

Historically, attached single-family homes have drawn older residents looking to downsize, said Craig Mayer, a partner with Leisure Development who’s seeking approval to build 51 patio homes near Bullitt County.

But today, more residents of all ages want the ease of smaller yards and shared community spaces, he and others said. And denser construction can make townhomes more affordable than traditional single-family.

“With the way the economy has changed and the housing shortage, I’m selling to nurses, teachers, people just getting into the housing market,” Mayer said of recent patio homes he’s built, which often sell for around $250,000. “…I’ve done several projects like this, and it really hits all aspects of the market.”

Townhomes, however, can be versatile to fit the needs of residents across all incomes and lifestyles, developers said.

At Bull Run, Hagan Properties is courting higher wage earners with the “lock and leave mentality” who want to be part of a community but don’t want the “upkeep and frustration that comes with maintaining a home,” said Layson Hagan, a principal and developer with the company.

Townhomes there will all be for rent, with prices starting at $2,950 per month. The development includes a playground, dog park, fitness center, pool and 24/7 maintenance. And each unit comes with a double garage.

“It feels more like a neighborhood than an apartment complex,” Hagan said, adding Bull Run has seen interest from everyone from young families to Baby Boomers. “…We think it’s going to be a big success. There’s a substantial amount of people out there looking for something like this.”

Chris Thompson, CEO of Alter Development, is also watching Bull Run for success.

Alter is behind the 12-unit Wellston Place townhomes in St. Matthews and is planning another 12 luxury townhomes on Brownsboro Road.

“I think Hagan is going to test the market to see if people are ready to accept it in Louisville,” Thompson said of larger townhome developments. “We’re dipping our toe in at a smaller level.”

Thompson said he was surprised by the interest Wellston Place has already seen, with more than 100 people attending three recent open houses. And if all goes well, he could see the uptick in townhome construction continue.

“I’m much more interested in building townhomes than apartments,” he said. “I think that’s what people really want. They’re not stacked on top of one another. I think people perceive it as a more convenient way to live.”

$26 million Bull Run Townhomes underway in East Louisville

April 23, 2024 By Hagan Properties

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By Eleanor Tolbert – Reporter, Louisville Business First
July 14, 2023

https://www.bizjournals.com/louisville/news/2023/07/14/26-million-bull-run-townhomes-planned.html

A new housing development is underway in the East End.

Crews recently broke ground on Bull Run Townhomes, located at 1922 Her Lane. The $26 million project comes from Louisville-based Hagan Properties.

The luxury townhome development will consist of 72 build-for-rent units. Layson Hagan, principal and developer at Hagan Properties, said for-rent townhomes give tenants an option for those who may not be able to afford a home.

“There is a substantial shortage of homes nationally and in Louisville, and many of the homes that are available are beyond the reach of many prospective homebuyers who may not have the down payment necessary to buy a home,” Hagan said in an email.

The community will feature three-bedroom floor plans ranging from 1,850 square feet to 2,350 square feet each. Each will include a two-car garage, doggie doors and privacy fences.

The community amenities include a private community swimming pool, social grilling patio, 24/7 fitness center, dog park with agility equipment, children’s playground and fire pit lounge.

“Our goal has been to design a product that is in keeping with the latest national trends for residential neighborhoods and single-family for lease communities,” Hagan said. “We visited, in-person, neighborhoods in Phoenix, Arizona; Savannah, Georgia; and Nashville, Tennessee. We’ve taken great care in designing highly desirable floor plans with unit features/amenities that set them apart from the market.”

Along with that, tenants of Bull Run Townhomes get the convenience of renting, like avoiding ongoing maintenance and upkeep, with the quality of a house.

“Many tenants prefer the flexibility to ‘Lock & Leave’ and not have the responsibility of home ownership,” Hagan said.

Construction is anticipated to be completed in the summer of 2024. It will be constructed, managed and leased by Hagan Properties, Inc. The plans show Gresham Smith, which has an office in Louisville, will be providing its services to the project. Hagan said the architect was Terry White with Lynn White and Associates.

Bull Run Townhomes is located near Ballard High School and next to Hagan Properties’ future complex, Providence Point Apartments. Hagan said the site has been on the company’s radar for over a decade.

“Hagan Properties rezoned the adjacent property (Providence Point) in 2006, and shortly after purchased a Right of Refusal from the previous land owners of the site in question,” Hagan said. “This protected our investment in Providence Point and ensured that a proper transition from high-density to low-density would be provided between Providence Point and the Graymoor-Devondale neighborhood.”

The complex will occupy the site of the former KABA Select Sires, a company within the cattle industry. The name Bull Run Townhomes is a nod to that history.,

The new Dee’s? The Hat Shoppe has everything to make your own Kentucky Derby hat

February 21, 2024 By Hagan Properties

FEB
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By Kirby Adams – Reporter, Louisville Courier Journal
February 21, 2024

https://www.courier-journal.com/story/entertainment/events/kentucky-derby/hats/2024/02/21/the-hat-shoppe-has-everything-to-make-your-own-kentucky-derby-hat/72187820007/

A master milliner of couture hats who is also a five-time featured milliner of the Kentucky Derby has stepped up to save the day for thousands of local race fans.

Jenny Pfanenstiel could almost hear an audible gasp spread through the Louisville community in August 2023 when Dee’s, a popular destination for DIY hat makers and designers announced it was permanently closing after 52 years in the hat, craft, and decor business.

With the 150th Kentucky Derby coming up on May 4, Louisville customers were frantic about where they would find their hat-making supplies or work with an affordable hat maker to create their Kentucky Derby hat or fascinator.

“We heard loud and clear that people in Louisville were upset when Dee’s closed and we thought we could help to fill that void,” Pfanenstiel told the Courier Journal. “Because I have Formé Millinery Co., a couture hat design boutique on Main Street, and Judith M. Millinery, a millinery supply shop in La Grange, Kentucky, we already had relationships with manufacturers to buy the raw materials and we thought ‘why not open a shop to fill the space left when Dee’s closed?'”

In November 2023, Pfanenstiel opened The Hat Shoppe in the Shelbyville Road Plaza, 4600 Shelbyville Road. The veteran milliner intentionally found a storefront close to where Dee’s was formerly located.

“We decided to make The Hat Shoppe a year-round interactive workshop experience for everyone,” Pfanenstiel said. “We have ready-made hats or the supplies to make your own hat, for men, women and children plus workshops and other fun interactive experiences.”

In addition to every supply a DIY hat maker could need, like hat and fascinator bases in a rainbow of color and size options, customers can select embellishments from an extensive flower bar or if it tickles your fancy, a feather collection of multi-colored lengths, shapes and sizes.

“If you are someone who likes to do it yourself, you can pick up everything you need and take it home,” she said. “Or you can set up an appointment with one of our hat designers and they will work with you one-on-one helping you pick things out and they will put it together for you.”

Not quite as colorful but every bit as extensive, the men’s section of the store is stocked with straw fedoras, porkpie, tribly, and boater-style hats plus feather embellishment to coordinate with your Kentucky Derby outfit. Pfanenstiel also carries felt Derby bowlers, newsboy, steampunk, flat brim and baseball-style caps as well as hats for fishing made by well-known brands Stetson, Conner, Peter Grim, and more.

“I would say since we opened in November, 70% of our customers have been men,” the milliner told the Courier Journal. “I don’t know if they are talking about us at barbershops or cigar bars or wherever, but we love that so many guys are showing up.”

Although Pfanenstiel is a celebrated milliner with high-profile customers ordering handmade sculpted couture hats from her Formé Millinery Co., she’s a gracious business owner who doesn’t balk at sharing the spotlight. She’s invited local milliners to display their collections at her St. Matthews store, which means if you are shopping for an affordable Kentucky Derby hat, you may find it ready and waiting for you at The Hat Shoppe

Now that it’s Kentucky Derby season, Pfanenstiel is sharing her time and talent (between creating custom couture hats) by offering in-depth courses at The Hat Shoppe where she teaches everything from intricate ribbon work and sculpting horsehair to making feather flowers from scratch.

I recently attended one of her workshops where we learned to make feather mounts. A few of the attendees were hat designers who wanted to hone their skills. A couple of us were beginners and, if I am being honest, I had never heard of a feather mount until Pfanenstiel announced we would be learning to make them in class.

She patiently explained how to build a bendable feather embellishment to add to a hat or fascinator by layering dozens of feathers to a base made of wire using a glue gun, a tiny flat iron and our imagination.

When the hour-and-a-half class was over, I had only glued my fingers to my pant leg once and had made a sweet blue and green feather mount to take home. More importantly, the process gave me a better understanding of the work and time that goes into putting together a beautiful custom-made Derby hat.

While Derby weekend is the most popular time to wear a hat in Kentucky, Pfanenstiel would like to help change that tradition.

Inside The Hat Shoppe is an area called The Hat Bar where customers can build felt hats complete with branding, and embellishments. Pfanenstiel said it’s a fun way to spend an afternoon or evening with a few friends making something with your hands you can then take home and wear. She also offers workshops to make hats that are based on a theme like Barbie or ahead of an upcoming concert like Taylor Swift or Stevie Nicks.

In addition to The Hat Bar and the variety of ready-made hats for men, the flower bar, the wall of feathers and the large selection of bases for women’s hats, The Hat Shoppe offers precious and whimsical hats for children and infants. The workshop room can also be reserved for hat-making parties and special occasions.

“We want people to enjoy the hat process and that’s why we’ve created these hat experiences,” she said. “People come to Kentucky for bourbon tours and conventions and we know sometimes people want to do something different and creative and that’s what we do here.”

For more information on The Hat Shoppe’s hours, location and offerings, visit thehatshoppelouisville.com.

Law to curb ‘frivolous’ appeals of commercial development upheld by the Court of Appeals

November 22, 2022 By Hagan Properties

NOV
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By Eleanor Tolbert – Reporter, Louisville Business First
Nov 22, 2022

The Kentucky Court of Appeals recently upheld the constitutionality of a law that aims to minimize lawsuits and appeals with the sole purpose of slowing major developments.

The law, KRS 100.3471, requires opponents of a development to post a bond when seeking to appeal Circuit Court decisions upholding those developments. It was passed in 2017.

According to the statute, an appellee, such as a developer, can file a motion in Circuit Court requesting an appeal bond be posted by an appellant. The circuit court in question would then conduct a hearing to gather findings of fact and set a bond amount.

Nick Pregliasco, an attorney with Louisville-based Bardenwerper Talbott & Roberts PLLC, explained if the appeal is deemed presumptively frivolous after that hearing, an appellant could be required to post a maximum bond up to $250,000. Appeals not deemed presumptively frivolous could still bring a maximum bond amount of $100,000.

The appeal can be dismissed if the bond is not posted within 15 days, according to court documents.

“Bonds have been required by the court for an appeal, so it was just a matter of time before one of those was then ultimately challenged,” Pregliasco said. “In this case, there were three different challenges, and they all were decided at the same time.”

When drafting the bill, the General Assembly stated the purpose of the statute was “to curb unnecessary appeals of land-use causes because appeals burden the courts, cause loss of jobs and loss of tax revenue, and many times render time sensitive projects such as multifamily affordable housing undevelopable.”

Local developer Scott Hagan, CEO of Hagan Properties, was an advocate of the statute since its inception. He said it took three years and many resources to get the initial bill passed.

The Court of Appeals upholding the law is a huge win for the Kentucky business community, Hagan said, because it enables developers to have a mechanism to limit lawsuits with the sole purpose of stalling development.

“This statute goes a long way toward balancing the interests of zoning opponents and developers/land sellers. It provides for zoning opponents to be heard at the applicable planning commission and then to appeal that decision to the applicable Circuit Court,” Hagan said. “But then, assuming they want to appeal the Circuit Court decision to the Kentucky Court of Appeals they must post a bond in varying amounts as determined by the Circuit Court judge. Shortening these appeals will prevent loss of income by developers, loss of tax revenue and loss of construction and permanent jobs.”

Three cases across the state took the statute to the Kentucky Court of Appeals, arguing it was unconstitutional. In all three cases, the appellants were contesting a decision from each respective circuit court.

The court documents show the cases were: Bluegrass Trust for Historic Preservation v. Lexington Fayette Urban County Government Planning Commission; Com. Of Kentucky ex re. Cameron v. Boone Development LLC; and Raz Inc v. Mercer County Fiscal Court.

Each case argued the law was unconstitutional because it infringes on the separation of powers, imposes a penalty on the right to appeal and violates the equal protection clauses of the U.S. and Kentucky constitutions, according to court documents.

The Court of Appeals denied those claims. In the analysis of the cases, written by Chief Judge Denise Clayton and judges Sara Combs and Donna Dixon, the documents said the law does not violate the separation of powers because “the Kentucky Constitution allows the legislature to define the Court of Appeals jurisdiction.”

The Court of Appeals also states the argument about an unconstitutional penalty is a facial challenge, meaning it is based on an argument that the requirement cannot be applied fairly or reasonably in any situation, according to Law Insider. The document said this is the hardest challenge to argue “since the challenger must establish that no set of circumstances exist under which the statute would be valid.”

In this case, the challengers failed to make that argument, the court documents said.

Lastly, the Court said the statute does not violate the equal protection clauses because those clauses require a statute have a reasonably conceived state of facts, and the purpose of the law was deemed to have a reasonably conceived state of facts.

Growing doughnut chain to open location in East End shopping center

October 14, 2022 By Hagan Properties

OCT
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By Eleanor Tolbert – Reporter, Louisville Business First
Oct 14, 2022

A bakery franchise is opening its second location in East Louisville.

Duck Donuts has plans to open a second shop in Middletown Station. It will be taking up a 1,500-square-foot unit in a new two-tenant building on the property — the other tenant being Playa Bowls.

The bakery is known for its made-to-order vanilla cake doughnuts, allowing guests to customize their dozen with their choice of toppings. Jeff Penn, owner of Duck Donuts in Louisville, said the store also serves doughnut breakfast sandwiches and partners with Comfy Cow to offer ice cream.

The first Duck Donuts location opened in February 2021 in Shelbyville Road Plaza. Hagan Properties manages both the plaza and Middletown Station.

The new location is anticipated to open in spring 2023. Penn said Louisville has been very receptive to the first location and figured Middletown was a good fit for a second.

“We liked the area,” Penn said. “It was easy working with the same landlord as we already have … and it checked all my boxes with being close to an apartment complex, Target, Walmart.”

Penn also said the franchise is looking to pull more customers from further outside Louisville in Oldham County. Being close to the Gene Snyder Freeway with the new Middletown location permits that.

Ground has been broken on the new buildings. Penn said the contractor on the project is Tom Boucher with Bravo Construction. The architect has yet to be determined.

He declined to disclose the total investment into the project. He said constructing the building from scratch has been more efficient, as the business has a blank canvas to work with.

Penn will be looking to hire about 40 to 50 employees closer to the new storefront’s opening. Penn owns all the Duck Donuts in Louisville and Lexington, Kentucky, and he’s interested in opening at least one more in Louisville. After the Middletown Station location is complete, however, he said his next store will likely be in Lexington.

Russ DiGilio, founder and CEO of Duck Donuts, launched the brand in 2007 in the town of Duck in the Outer Banks of North Carolina. It now has over 100 shops nationwide.