Three Castle Street retail spaces, once slated for demolition for a proposed apartment project, are now available for lease.

Located near the corner of Castle and South Sixth streets, the three spaces at 604, 606 and 606 ½ Castle St. range in size from just over 700 square feet to nearly 5,000 square feet. The building’s owner initially planned to build apartments on the site before reconsidering, according to Terry Espy, president of local commercial real estate firm MoMentum Companies and a listing agent for the property.

RCG LLC, a Boston-based real estate investment and development firm, purchased the retail spaces, along with Urban Oasis, a mixed-use building with 11 apartments and ground-floor commercial space, in a $2.25 million deal in 2019. A few years later, the company submitted plans for a project that proposed new apartments on the site of the retail spaces.

As part of those plans, existing businesses vacated their spaces. Luna Caffe, for example, moved from its former space at 604 Castle St. just down the block to a new storefront at 608 Castle St., where it opened in early 2023.

Espy said the uptick in new apartment construction along Castle Street prompted the building’s owners to reconsider their plans for additional apartments.

“If you look at the new multifamily that's already taking tenants, and then look at what is on the table getting ready to break ground,” Espy said, “the need right there is not more multifamily, not more apartments. The need tends to be more retail.”

Work recently wrapped up on Midcastle, a four-building complex that brought nearly 100 new apartments to 1110 Castle St., the site of a former Wave Transit bus maintenance facility. The project’s developer, Dave Spetrino, also plans to build another 15-unit apartment complex at 512 and 514 Castle St. 

Closer to the Cargo District, a handful of other infill developments are proposed, including The Ollie, a 24-unit mixed-use project at 1315 Castle St., and The XII, an 18-unit building at 1201 Castle St.

With the new apartment construction in the corridor, Espy added, the point at which a potential project would break even extended “beyond a comfortable timeframe” for the developers. They began running the numbers about four months ago, she said, and ultimately decided to pursue retail leases for the building.

So far, Espy said she’s received more than 20 inquiries about the property. All of the spaces are move-in ready and have their own unique elements, Espy said. 

The space at 604 Castle St. is the smallest, at 716 square feet, with an exposed brick wall and an outdoor patio in the back, while the storefront at 606 Castle St. is the largest, at 4,950 square feet. Espy said the space would be perfect for pop-up retail vendors or a market, and she’s also been approached about adding a kitchen to the space. According to Espy, the 1,350-square-foot space at 606 ½ Castle St. also has exposed brick and formerly served as a tattoo parlor.

Espy said the building’s owners aren’t in a rush to fill the retail spaces and instead want to wait for the right concepts.

“We really do want to try to bring in something that enhances the street,” she said, “and doesn't duplicate any of the business models that are already there.”