A new mixed-use development is set to transform an emerging Lexington neighborhood.
With construction set to begin this summer, The Railyard will include three apartment buildings with a total of 32 rental units and a ground-floor commercial space. Located at 1000 Delaware Ave. near the intersection of Winchester and Liberty Roads, the site is currently a vacant lot. The development’s name is a nod to the area’s former freight and passenger railroad hub and industrial spaces.
It’s the first such project for developer Will Hanrahan. As a resident of the nearby Kenwick neighborhood, Hanrahan says he knows the vicinity well and wanted to work “in my own backyard.”
“I have been following the Lexington development world and waiting for the right site and project that made sense so I could work on my first one,” Hanrahan said. “I didn’t want to end up driving around town, seeing sites, and wondering why I didn’t jump on those opportunities.”
“Thanks also to Paul Metzler for coming in and joining the project to help get it launched,” Hanrahan added. “I’m so thankful to have found an investor who aligned with my goals and vision. That kind of fit makes all the difference.”
The estimated $6 million project is due to be completed by summer 2026.
Construction on The Railyard is expected to begin this summer. The development’s design includes three apartment buildings with a total of 32 rental units and ground-floor commercial space.
The plan calls for 20 of the 32 residential units to be offered for rent at market rates, while the remainder will be reserved as affordable housing units available to households earning 80 percent or less of the Area Median Income.
The Lexington Planning Commission unanimously approved the development project during an April meeting. Hanrahan has also applied for financial support through the Lexington Office of Affordable Housing.
“The site is underutilized and has been vacant for a few years,” Hanrahan said. “Previously, it had been used for industry. There is only an upside to developing it. You have heard a lot about the need for infill in Lexington. This is a site on which to do that.”
Delaware Avenue is currently lined with a couple of dozen small and medium-sized businesses, including Paradise Cycles, which is located next door to the proposed one-acre building site. There is a Baptist church nearby that was converted from a former passenger train depot, and a handful of modest, older homes along the street.
Hanrahan said he was surprised to learn that thousands of acres of vacant land remain within the city’s Urban Services Boundary.
“If used creatively, it could help meet our housing and economic needs without affecting our surrounding Bluegrass farmland,” he said.
The project has drawn the attention of 5th District Council Member Liz Sheehan, a member of the city’s Homelessness Prevention & Intervention Board, who wrote an open letter of support for what Hanrahan is trying to accomplish.
“This project serves as an example of adaptive reuse and infill development that is called for in our local Comprehensive Plan,” Sheehan wrote. “Reimagining this former industrial site to become a mix of residential and commercial space will enhance Lexington’s job growth and economic development opportunities and can hopefully serve as a model for other private developers within our community to prove the viability of mixed-use, mixed-rate housing options.”
The project’s development team anticipates generating about 50 temporary construction jobs over the next year and 20 permanent positions once the apartment buildings and retail spaces are fully occupied and staffed.
As for design, Hanrahan emphasized that he wanted to create buildings that make sense on Delaware Avenue “and the stories we will share about the old rail line and the industrial heritage of the street,” he said.
Renderings of the apartment buildings show metal exterior wall panels and a masonry ground floor. Hanrahan calls it “urban industrial architecture.”
Hanrahan also pays tribute to several small businesses along Delaware Avenue, including Pasta Garage, an Italian café which helped pave the way for other development along the street. He said he is also inspired by The Met, a nearby mixed-use commercial and residential property at the corner of Midland and East Third in the East End. It features 44 residential spaces split up between market-rate and affordable units, and it contains a variety of small businesses, including a DV8 Kitchen location.
Hanrahan says that prior to selecting a project and a site, he studied social media comments about development in general in Lexington. The plea for affordability stuck with him. “I think we found the sweet spot,” he said.
Hanrahan is a native of Nottinghamshire, England. He moved to Lexington in 2012. His wife is a Kentucky native and a graduate of Transylvania University. Hanrahan has spent the past decade working in digital marketing for several Lexington brands. He helped companies build community online through loyalty programs and social media.
A career turning point for Hanrahan was his discovery of Lexington’s approach to growth and development and its commitment to preserving farmland through the Urban Services Boundary.
“It felt like the perfect place to model what’s possible through thoughtful infill — housing for middle-income workers, commercial space for small businesses, and public areas that respect the neighborhood’s character and history,” he said.
That understanding led Hanrahan to the sometimes overlooked Delaware Avenue corridor and The Railyard project.