Work has resumed at the Dundee Flats construction site at 49th and Dodge Streets following a delay the developer said was due to an unexpected, but welcome, tenant.

Children’s Physicians plans to lease about 4,000 square feet on the ground level of the future apartment complex, essentially expanding services offered in a neighboring building to the east.

Aaron Moser of Omaha’s Sage Capital, developer of Dundee Flats, said site work for the four-story structure had stalled during negotiations with Children’s. He said the deal required a building reconfiguration that won’t be noticeable from the outside, but will push a commercial wall farther into the enclosed garage to make room for the clinic.

While he regrets any confusion, Moser said: “It was a fortunate delay.”

Children’s, which has had a presence in Dundee for a couple of decades, moved to the neighboring building at 4825 Dodge St. in 2010. Steve Burnham, senior vice president of physician networks for Children’s Hospital & Medical Center, said the Dundee clinic is one of the busiest, and additional exam room space at Dundee Flats will offer better access for patients and families.

“We’re landlocked with the current site,” Burnham said.

Now down is the Dundee Flats “Coming this fall” banner that passing motorists saw at the southeast corner of 49th and Dodge Streets. In its place will be a new one signaling an opening in about a year.

Moser said the mixed-use building is expected to be done in September or October of 2018.

Four contiguous and worn structures spanning nearly an acre at the site already had been razed to make way for the development. Work had stalled for several months, and Moser said he could not discuss details with inquiring neighbors while talks with Children’s were underway.

Moser’s earlier plan for about 2,500 square feet of commercial space on the ground level has grown to about 5,000. About 1,000 square feet remains for a retailer on the west end. Moser hopes to secure a service provider, such as a dry cleaners, that would cater to the needs of apartment tenants.

The reconfiguration of the ground level means a loss of 10 interior parking garage stalls, but Moser said he and Children’s have worked out a shared parking arrangement to make up for stalls lost.

Unchanged, Moser said, is the plan for 65 apartments on the upper levels.

The project has been in the public eye since late 2015, when Sage Capital, then about a year old, started to assemble the parcels along Dodge.

City officials have approved up to $1.8 million in tax-increment financing for the nearly $11 million project.

Meanwhile, other construction work continues in the Dundee area on and around the Dodge corridor, including at the Dundee Theater at 50th and Dodge Streets. Film Streams is reviving the movie house and aiming for a late-November opening.

Scheduled to open in mid-2018 is the 283-unit Duke of Omaha apartments, which will run parallel to 46th Street between Dodge and California.

The Giddings Group of Augusta, Georgia, is developing the 8-acre complex, which has a nearly $44 million price tag and replaces an industrial site used for years as a maintenance yard for concrete company Lyman-Richey.

More than 7 dozen development projects that are changing the Nebraska and Iowa landscape

Here is an ongoing list of some our development stories from 2016 and 2017, with the most-recent stories at the top. 

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Omaha business leaders focused on developing the city’s riverfront have toured developments in other cities and plan another public meeting in Omaha this week. But that group's progress comes as a separate group that had been trying to bring more life to the riverfront undergoes changes after losing its director of less than a year.

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Owner Christian Christensen said he sought to create an “intimate” setting — with art and amenities including urban garden plots, a spa for pets and a gym for humans that looks onto an outdoor courtyard with a swimming pool, grills and fire pit. He envisions fast-paced residents coming home and changing gears.

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The pair of new construction projects — dubbed Blackstone Station and Blackstone Union — ushered in a different level of lender confidence, said area real estate leaders. The apartment buildings have their grand opening this week on the historic commercial strip.

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The 64-unit structure stands out among other neighboring buildings because new owner InCommon Community Development bought it with the specific intent to keep rents low for residents such as Brooklyn and Eisenauer, even after a planned revamp.

Reporter - Money

Cindy covers housing and commercial real estate for The World-Herald. Follow her on Twitter @cgonzalez_owh. Phone: 402-444-1224.

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