Wallace Works | A Mixed-Use Community in Northeast Bozeman

Summary: Wallace Works is a new mixed-use community in Northeast Bozeman at 801 N. Wallace Avenue. The project is expected to include for-sale row homes, rental apartments, co-living spaces, live/work units, and commercial space. 

Where is Wallace Works?

Wallace Works is located 801 N. Wallace, on a site with deep roots in Bozeman’s history. The property was originally home to a brewery built by the Lehrkind family in 1895, which was once the biggest building in town until the Montana State University fieldhouse was constructed. 

Most of the old brewery was demolished in 2007 after a developer purchased the property. When the recession hit, redevelopment plans stalled, leaving one of the historic brewery walls standing until 2014.

This pocket of northeast Bozeman has changed a lot in recent years. What was once an overlooked corner of Bozeman is now a lively neighborhood with a personality all its own. There are several developments underway in this area, including Bozeman Yards, a 5-story luxury condo development, and BG Mill, a luxury condo development at the site of the old grain mill down the road. 

What is the current status of the Wallace Works development?

The project received its initial approval in 2023, and in October 2024, Bozeman city commissioners approved an urban renewal agreement that provides the developers with tax reimbursements in exchange for adding below-market-rate housing units to the project. 

More recent city planning documents show the project being phased, which allows parts of the development to move forward while other portions are modified or completed separately.

Wallace Works is currently under construction, and the project is now being promoted as a mixed-use community with row homes for sale, apartment rentals, co-living spaces, live/work units, and commercial spaces.

What will be included in the Wallace Works project?

According to the current Wallace Works website, the project is expected to include:

• 5 live/work units
• 47 studio and one-bedroom apartments
• 11 two-story row homes

• 4 commercial spaces

   

The website describes Wallace Works as a walkable community in Northeast Bozeman, close to cafes, shops, and trails. It also notes that the site will include outdoor public gathering spaces and commercial tenants intended to serve everyday neighborhood needs.

Will Wallace Works include affordable housing?

Yes, city documents show an affordable housing component tied to the project. The project’s affordable housing plan proposes deed restricting 10% of the total number of units for renters earning 80% of the area median income for a period of 30 years.

Wallace Works is not just adding market-rate housing and commercial space. It is also tied to a public benefit through below-market-rate rental housing, which was part of the city’s urban renewal agreement with the developers. 

In October 2024, city commissioners approved the use of tax increment revenues to reimburse eligible project costs. That means the city approved a structure where certain future tax revenues generated in the district can be used to reimburse eligible development-related costs, in exchange for public benefits such as affordable housing.

Who is developing Wallace Works?

The project is being led by Nest Partners, the same team behind the Lark Motel and the Rialto. In a January 2023 interview, developer Erik Nelson emphasized their commitment to preserving the character of Northeast Bozeman, saying they hope to maintain the “funkiness and grit” of the neighborhood. 

“We’re doing our best from a site plan and landscaping perspective to not make it totally polished like it landed here from some other community.”

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