The popular Mercado District, west of downtown, is being built out with a new apartment complex, river walk and plaza with a large food and beverage hall and a parking facility.
The $110 million Bautista project, by local developers The Gadsden Co., recently broke ground and is expected to be complete in 2025.
The complex will have 256 apartments and 16,500 square feet of ground-floor retail and office space, and a large public plaza.
A paseo will lead from the project to the Santa Cruz River, where developers plan to restore vegetation and add viewing platforms and recreation spots, said Adam Weinstein, Gadsden’s president and CEO.
The apartments will range in size from studios to large two-bedroom units with balconies or Arizona rooms, similar in characteristic to the neighboring Monier complex, which was also developed by Gadsden.
Completed in 2021, Monier is 100% occupied, with rents ranging from $1,333 to $2,777.
“We know good design pays dividends,” Weinstein said. “We wanted to build 100-year buildings that give a sense of place.”
The $110 million Bautista development consists of 256 apartments and includes 16,000 square feet of ground-level retail and restaurant space, underground parking and interior courtyards.
Aside from food and beverage, retail interest in the Bautista project has come from service providers such as salons, spas and dog groomers, he said.
A vision that began 20 years ago, the Mercado District started with the Mercado San Agustin, single-family housing, the shipping container annex and the Monier Apartments and retail.
There are more than 100 single-family homes in the development and a workforce housing complex, Westend Station Apartments.
Food offerings include Agustin Kitchen, Beaut Burger, La Estrella Bakery and Seis Kitchen.
Shops include La Cabaña, Mast and Transit Cycles. Several events and farmer’s markets are also held in the Mercado District.
Located within the Rio Nuevo boundaries — at the western end of the streetcar line — the Bautista development is the largest to date for the 24-year-old district.
The board previously approved $2.4 million toward the Monier mixed-use project and $3.9 million toward the annex.
For the Bautista project, Rio Nuevo voted to invest $7.2 million, given the success of the Mercado District.
“They’ve done everything they’ve always promised they would do,” said Fletcher McCusker, chairman of the Rio Nuevo board. “Some people scoffed at the idea of a shipping container village, but it’s been immensely popular.”
He said Rio Nuevo’s portion of tax revenue from the development’s retail operations is currently more than $7 million a year.
“Gadsden has earned the right to present to us, starting with the annex, the Monier and now the Bautista,” McCusker said. “They’ve turned that west side into a destination.”
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