Construction work on downtown Lawrence’s first condominium project will begin Monday, developers said Friday at a ground-breaking ceremony.

Officials with Lawrence-based Harris Construction announced that they have sold 14 loft-style condominiums and have landed three office tenants for the Hobbs Taylor Lofts project at the northeast corner of Eighth and New Hampshire streets. The development, in addition to the residential areas, will include retail and office space.

“We’re thrilled to get started,” said Hunter Harris, vice president of project development for Harris Construction. “Now that people will start seeing the bricks and mortar going up, we think interest should really peak. I totally anticipate us being sold out by the time we cut the ribbon on it.”

Topeka-based Capital City Bank will be the anchor tenant for the project’s retail and office development. Mark Gonzales, president of the bank’s Lawrence operations, said the company would have a 7,000-square-foot, full-service bank on the building’s ground floor. It will be the company’s second location in Lawrence. It opened a branch in the Hy-Vee Food and Drug Store, 4000 W. Sixth St., five years ago.

“This fits in with Capital City Bank’s plan of expanding in northeast Kansas,” Gonzales said. “Lawrence has such a vibrant economy. The retail sector, the service sector and the residential sector are all growing, and we don’t see any of that slowing down.”

Lawrence’s Sabatini & Associates Architects, which designed the project, and Lawrence-based Linquist & Craig Hotels & Resorts also will move their offices to the development. Harris Construction also will move its corporate headquarters into the building.

Harris said the project was close to landing two retail tenants and actively was marketing the development to restaurants.

The five-story building will include 19,000 square feet of retail space on its ground floor, 21,000 square feet of office space on its second floor and 31 loft-style condos. The condos, which will be different than apartments because residents will own the space, are selling between $130,000 and $495,000, depending on size and finishes.

Harris said the project was attracting a lot of interest from empty-nesters looking for low-maintenance living. That and the ambiance of downtown is what drew Jim Roberts and his wife, Carol, to the project.

“We have lived in the country for 13 years and we were looking for something different,” Jim Roberts said. “You don’t walk to a restaurant when you live in the country. And going from mowing 10 acres to having nothing to mow is attractive.”

The condominiums should be ready for tenants in April 2005.

Bo Harris, chief executive of Harris Construction, said he thought the project could mark a turning point in the development of downtown.

“We think it will help anchor downtown and ensure that it truly becomes a place to live, work and play,” Bo Harris said. “And I think this is a major step in a vast improvement all along New Hampshire Street.”

Bo Harris said he envisioned parts of New Hampshire Street being redeveloped to accommodate new retail tenants.

“If downtown is going to remain as a major retail presence in the community, it is going to take some large, new projects, and I think those will happen on New Hampshire Street.”

City Commissioner Sue Hack said she was excited about the potential change the project could spur. She said she hoped it would encourage others to create more mixed-use developments that would include retail and residential components.

“We not only want people to enjoy our downtown as visitors, but we want people to live downtown too,” Hack said. “That is what makes a strong downtown.”