LEXINGTON, Ky. (LEX NEWS) — Developer Core Spaces is moving forward with a student housing project near the University of Kentucky after tearing down 17 historic homes in the Aylesford neighborhood, drawing sharp criticism from preservationists.
Demolition has been underway on East Maxwell and Rose streets. The Bluegrass Trust says the homes being torn down are part of two blocks, and some are listed on the National Register of Historic Places. However, the properties are not protected by Lexington's local H-1 Historic Overlay.
Johnathan Coleman of the Bluegrass Trust said the scale of the loss is alarming.
"We are really concerned at the Bluegrass Trust for the immense scale of loss we're seeing of historic properties in the Aylesford neighborhood," Coleman said.
Last year, Core Spaces sought a zoning change for an 8-story student housing project. City Council rejected it. However, Core Spaces says demolition permits were secured before that vote, and a smaller build is still permitted under current zoning.
Core Spaces, which also built The Hub near campus, issued a statement saying its goal is to develop projects that serve residents and contribute positively to communities. The company adds the properties were multifamily rentals that needed substantial investment, and the new development will provide modern housing near UK.
Coleman acknowledged the need for student housing but noted that around 5,000 student living units are currently under construction across Lexington, including a project next door to the demolition site.
"We believe that we can have both with a little bit of foresight, with a little bit of planning," Coleman said.
Coleman said many longtime residents lost their homes in the process and that the historic character of the block cannot be recovered.
"We will never get that block back right, that block is gone," Coleman said.
Core Spaces provided a full statement from Austin Pagnotta, Managing Director of Acquisitions: "Core Spaces worked alongside the property owners to pursue a rezoning request that would have allowed for additional density on the site. Throughout that process, we consistently communicated that the rezoning request was focused on increasing density, not determining whether redevelopment of the property would occur. To that end, the property owners ultimately chose to pursue demolition as part of the site's planned redevelopment.
The project being pursued today complies with Lexington's existing zoning regulations and can move forward as a by-right development without additional zoning amendments or variances. While the rezoning request was ultimately denied, City Council made clear during the public process that the denial applied to the requested increase in density and not to the underlying redevelopment of the site. Additionally, the property owners had secured demolition permits prior to the 2025 rezoning hearing.
Core Spaces is pursuing a by-right development that complies with the site's current zoning allowances. Our proposed development will increase the number of rental units available in a highly desirable location near UK. By providing additional housing options close to campus, the project is intended to offer residents convenient access to the university and surrounding downtown area while helping address broader housing demand in the market. The project will offer a modern, high-quality housing option with controlled access, amenities, study areas, and other features that will appeal to the demographic.
We are committed to delivering thoughtfully designed, high-quality housing with a focus on long-term durability, attention to detail, and creating a positive resident experience. Our goal is to develop projects that serve residents well and contribute positively to the communities in which they are located. Hub Lexington Upper, our first project in the market, began construction more than a decade ago and continues to serve residents today. The development also introduced one of Lexington's first small-format Target stores, which has proven to be a valuable amenity for both residents and the broader community.
We understand that some locals have strong feelings about changes to long-standing properties in the community, and we respect those perspectives.
At the same time, it's important that public discussions reflect the facts about the site. These buildings were not designated historic structures and were not included within the City's historic overlay district. These buildings were multifamily rental properties that had reached a point where substantial investment would have been required to address their condition and long-term viability.
We have remained transparent about our plans throughout the process and have continued engaging with neighbors regarding the future of the site. Our goal is to create a development that respects the surrounding neighborhood while helping address Lexington's growing housing needs," Pagnotta said.
