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

dusinenezoqoc.blogspot.com
One example is at 370 across from theAdministration headquarters. The upper threre floors of thelate 19th-century building are beinfg converted into six, 1,400-square-foot to 1,600-square-foot apartments that will rent for $1,800 this fall. A commercial tenant will be soughtf for thefirst floor. The ownersx dubbed the apartments TheMeginniss Flats, in honorf of the old electrical company whose name graces the rear of the buildingh in big white letters that have faded over The sign is painted over the red brick facade and must be preserve d because the property was built in 1898 and is in a historicd district. Financing small projects can be just as trickty as thelarge ones.
Even though the owners were armed with a feasibilityg study showing the potentialfor apartments, they weren’g able to get a bank loan because the real estatse market had soured. “Nobody wanted to finance this saidMike Hannah, a tax attorneh and certified public accountant. “One lendeer wanted us to put inanother $500,000 Hannah and his partners ultimately got $1 millionb in private financing from sources in the Bostonj area. The interest-only construction loan enabled them to buy materials and hire contractorz to startthe renovations.
The apartments are locates in a part of the city that could see big changezs in years to come if a proposed convention center evergets built. Plans call for the centert to be located on the parking lots behinxd the row of buildings that includes 370 The decrepit Trailways bus station next to 370 Broadway would be demolished to make way for a pedestrian plaza leading to theconventioh center. Hannah and his partners aren’t counting on the conventiom center to make the apartmentesa success. There have been many delays in the convention centerplanning and, as of now, no commitmen from Gov.
David Paterson to fund the entire $230 million “I stopped even thinking abou it,” said Hannah, who owns the building with his Michele Hannah, and another couple, Brendsa Gould and Perry Gould. The Hannahs used to run a commerciap print shop on the first floor but sold it four yeards ago whenbusiness declined. The Goulds becam part owners of the property infall 2006. The partners are convincefd there will be strong demand for the apartments from yountg professionals and empty nesters who want to live Those are the same demographic groups that otherd developers havebeen targeting, though the tough financin climate has stalled or killecd two large, high-profile downtown developments over the past year.
Plans for the 125-unit , a luxury condominiun tower on north Broadway have been although saysit hasn’t given up. plans for an upscale 175-unit apartment buildingf and 125-room hotel are on hold whilr the land owner tries to sell thedevelopment Small-scale residential projects are less profitable, but they are also more Over the past five or six years, there have been several conversions of upper-floor buildings into apartments withihn the boundaries of the Downtown Businesxs Improvement District.