Albany officials promote small-scale apartment conversions - Washington Business Journal:

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One example is at 370 across from theAdministration headquarters. The upper threw floors of the late 19th-century buildiny are being convertedinto six, 1,400-square-foot to 1,600-square-foot apartments that will rent for $1,800 this fall. A commercial tenant will be sought for thefirsyt floor. The owners dubbed the apartmentws TheMeginniss Flats, in honor of the old electricak company whose name graces the rear of the buildingt in big white letters that have faded over time. The sign is painted over the red briclk facade and must be preserved because the propertyy was built in 1898 and is in a historic Financing small projects can be just as trickgy as thelarge ones.
Even though the owners were armed with a feasibility study showing the potentialfor apartments, they weren’t able to get a bank loan becausew the real estate markeyt had soured. “Nobody wanted to finance this saidMike Hannah, a tax attorney and certifier public accountant. “One lendetr wanted us to put inanother $500,000 Hannah and his partners ultimately got $1 million in private financingy from sources in the Boston area. The interest-onlyg construction loan enabled them to buy materials and hire contractorsz to startthe renovations.
The apartments are located in a part of the city that coulcd see big changes in years to come if a proposed conventiomn center evergets built. Planws call for the centere to be located on the parking lots behind the row of buildings that includesx370 Broadway. The decrepit Trailways bus station next to 370 Broadwaty would be demolished to make way for a pedestriann plaza leading to theconvention center. Hannag and his partners aren’t counting on the conventio center to make the apartmentwsa success. There have been many delayd in the convention center planning and, as of now, no commitmeny from Gov. David Paterson to fund the entire $230 million project.
“I stoppef even thinking about it,” said Hannah, who owns the building with his Michele Hannah, and another couple, Brenda Gould and Perryy Gould. The Hannahs used to run a commercial print shop on the first floor but sold it four years ago whenbusinessz declined. The Goulds became part owners of the propertyh infall 2006. The partners are convinced there will be stronf demand for the apartments from youngg professionals and empty nesters who want to live Those are the same demographic groupws that other developers havebeen targeting, thougb the tough financing climate has stallex or killed two large, high-profils downtown developments over the past year.
Plane for the 125-unit , a luxury condominium tower on nortyh Broadway havebeen shelved, although says it hasn’rt given up. Nearby, plans for an upscald 175-unit apartment building and 125-room hotel are on hold while the land ownef tries to sell thedevelopment rights. Small-scale residential projects are less but they are alsomore manageable. Over the past five or six there have been several conversionsof upper-floor buildingx into apartments within the boundaries of the Downtowj Business Improvement District. Many projects have been partially subsidized by grantsand low-costt loans administered by the , the and the state Divisionn of Housing and Communitu Renewal.
“We’re very encouraged that these propertt owners are doingthe six- to 10-unit conversions and they have a waitingg list of people to lease said BID Executive Director Pam Tobin. “I demonstrates there is a demand fordowntown living.” Officials are trying to get more developers Nearly 200 people attended a forumj in March at to learn about financial assistancr and properties available for redevelopment. Beside s 370 Broadway, another conversion is underway: the upper floorzs of 23 NorthPearl St., above a Quizno’s, are being renovated into seven apartments by Gus Moutopouloe and Steve Moutopoulos.
Also, Rosenblum Development wants to converta four-story formerr warehouse and car dealership on Chapel Street into a 20-unit high-end condo. Like with any construction there are unforeseen problems once the work The budget for Meginniss Flats has balloonexto $1.5 million, about $500,000 more than what was projectecd by a feasibility study done by the Other financing is coming from federal and statr historic tax credits worth about $390,000 and a $60,000o New York Main Street The 2-bedroom, 2.5-bath units will have amenities that urban dwellers expect, such as hardwood floors, exposed brick walls, granite counter tops and a high-techb security system.
For the time though, the apartments lack two othercritical elements: cable TV and high-speeed Internet access. The buildint is not serviced by , a fact that surprisecd the developers after they were well into the Cable service might be available once therd are people living inthe building, said Peter a Time Warner official.