In a sign of the further development of downtown Albany as a residential neighborhood and a destination during non-workweek hours, Stacks Espresso Bar, which has been in business on Lark Street in the city for two and a half years, on Monday (11/7) will debut a downtown location that will be open 12 hours a day, seven days a week.

The new Stacks, on the ground floor of the Arcade Building, at 488 Broadway, is 1,700 square feet, or more than twice the size of the Lark Street shop. It will have six new employees, supported by two more from the original location, and cost about $100,000 to build, equip and decorate, according to majority owner Tyler Wrightson.

The project received $20,000 from Capitalize Albany, the city’s nonprofit development wing, as part of its new Downtown Albany Retail Grant Program, which awards funds to businesses that wish to open downtown or to existing businesses seeking to renovate.

The Stacks grant is the first for the program, announced this past spring in conjunction with a complementary effort, called Amplify Albany Grant Program. The latter seeks to attract foot traffic to commercial districts through “innovative, unique and buzz-worthy promotional projects, events and programming,” according to Capitalize Albany. Together the two programs represent an initial pool of $400,000, with $325,000 allotted for the downtown retail component.

“The grant made a big difference to us,” said Wrightson. “We’re excited for the space and what we’ll be able to do with it.” He envisions, for example, regular sampling sessions, a slate of coffee-related classes, barista competitions and promotions designed to attract crowds using the Hudson River Way, a pedestrian bridge just across Broadway, to get to the Corning Preserve for events including Alive at 5 concerts. As an opening promotion, Stacks will be giving away any of its drinks for free on Nov. 17 and hosting its first barista competition that evening.

A coffee shop open morning through evening and on weekends was among the top businesses sought by Capitalize Albany for the grant program, its president, Sarah Reginelli, said. As a destination for people to pop in often, meet friends, read or work online for part of the day, it’s what’s known in development and planning circles as a “third place,” after home and office, especially for downtown residents.

With 275 residential units opening in the past three years — including 60 apartments, all occupied, on the upper floors of the Arcade Building — and 150 more under or about to begin construction, Capitalize Albany and the Downtown Albany Business Improvement District are working to attract businesses such as coffee shops, more bars and restaurants and, importantly, general and boutique retailers. They envision a blend of retail offerings that will cater to residents of the nearly two dozen new downtown buildings, workers and visitors to attractions such as the Palace and Capital Repertory theaters, Times Union Center and the Albany Capital Center convention facility, due to open in the spring.

“The businesses we’ve approached, particularly those that haven’t been downtown in a while or haven’t kept up on what’s going on, have been very excited to learn about the residential strength and the investment that’s been occurring,” Reginelli said.

She said Capitalize Albany expects to give out 10 to 20 grants as part of the Downtown Albany Retail program, from $10,000 to $30,000 apiece or more, depending on the scope of each project. Citing three downtown restaurant successes, she said, “For businesses that might be interested in downtown, we’re able to tell the story of Cider Belly (Doughnuts), Ama Cocina and The Hollow — really strong stories that resonate. Retailers want to know that they would be going somewhere with like-minded businesses and entrepreneurs beside them.”

Although relatively new to the coffee business, Wrightson said he was driven to add another location after seeing the Arcade space while scouting sites for a new office for his principal business, Leet Systems, a cybersecurity firm. (It ended up nearby.)

“It’s such an awesome spot, with tons of natural light and looking right out on Broadway and Maiden Lane Park,” he said, noting that Albany Center Gallery will relocated to an adjacent Arcade Building space in January. “I saw the possibilities immediately, especially with 60 full apartment upstairs. It just takes a couple of early pioneers like ACG and us to get others to see what’s happening down here.”