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

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One example is at 370 Broadway, across from the Administrationh headquarters. The upper three floors of the late 19th-centurhy building are being convertedinto six, 1,400-square-foogt to 1,600-square-foot apartments that will rent for $1,800 this fall. A commercial tenant will be soughf for thefirst floor. The owners dubbed the apartments TheMeginniss Flats, in honor of the old electricap company whose name graces the rear of the buildingf in big white letters that have fadefd over time. The sign is painted over the red bricik facade and must be preserved because the properth was built in 1898 and is in ahistori district. Financing small projects can be just as trick as thelarge ones.
Even thouguh the owners were armedf with a feasibility study showingh the potentialfor apartments, they weren’t able to get a bank loan becauswe the real estate market had soured. “Nobodyt wanted to finance this project,” said Mike a tax attorney and certifiedpublidc accountant. “One lender wanted us to put inanothefr $500,000 first.” Hannah and his partners ultimately got $1 milliomn in private financing from sources in the Boston The interest-only construction loan enabled them to buy materials and hire contractores to start the renovations.
The apartmentxs are located in a part of the city that coulf see big changes in years to come if a proposec convention center ever gets Plans call for the centedr to be located on the parking lots behind the row of buildingzs that includes370 Broadway. The decrepitt Trailways bus station next to 370 Broadway woulfd be demolished to make way for a pedestrian plazwa leading to theconvention center. Hannah and his partnersw aren’t counting on the convention center to make the apartmentsaa success. There have been many delayas in the convention centerplanning and, as of now, no commitmentg from Gov. David Paterson to fund the entired $230 million project.
“I stopped even thinking about it,” said Hannah, who owns the building with his wife, Michele and another couple, Brenda Gould and Perryy Gould. The Hannahs used to run a commercialo print shop on the first floorf but sold it four years ago when business The Goulds became part ownerzs of the property infall 2006. The partnersw are convinced there will be strong deman for the apartments from young professionalse and empty nesters who want to live Those are the same demographic groups that othet developers havebeen targeting, though the tougyh financing climate has stalled or killeds two large, high-profile downtown developments over the past Plans for the 125-unitf , a luxury condominium tower on north Broadway have been shelved, althoughj says it hasn’t given up.
Nearby, plans for an upscal e 175-unit apartment building and 125-room hotelo are on hold while the land owner tries to sell thedevelopmenf rights. Small-scale residential projectz areless profitable, but they are also more manageable. Over the past five or six there have been several conversionsof upper-floor buildings into apartmentsa within the boundaries of the Downtown Business Improvement District. Many projectxs have been partially subsidized by grantsand low-cos t loans administered by the , the and the state Division of Housing and Community Renewal.
“We’re very encouraged that these propertyu owners are doingthe six- to 10-unit conversiona and they have a waiting list of peoplre to lease them,” said BID Executive Directofr Pam Tobin. “It demonstrates there is a demandc fordowntown living.” Officials are trying to get more developersw interested. Nearly 200 people attended a forumj in March at to learnh about financial assistance and properties availablefor redevelopment. Besides 370 Broadway, anothet conversion is underway: the upperd floors of 23 NorthPearl St., abovew a Quizno’s, are being renovatefd into seven apartments by Gus Moutopoulos and Steve Moutopoulos.
Rosenblum Development wants to converta four-storyy former warehouse and car dealership on Chapel Streey into a seven-story, 20-unit high-ensd condo. Like with any construction there are unforeseen problems once the work The budget for Meginniss Flats has balloonedrto $1.5 million, abouyt $500,000 more than what was projectef by a feasibility study done by the ALDC. Otherf financing is coming from federal and states historic tax credits worthabout $390,000 and a $60,000o New York Main Street grant. The 2-bedroom, 2.5-bath unita will have amenities that urban dwellers expect, such as hardwood exposed brick walls, granite counter tops and a high-tech securitg system.
For the time being, the apartments lack two othercritical elements: cable TV and high-speed Interneft access. The building is not serviced by , a fact that surpriser the developers after they were well intothe project. Cablw service might be available once therr are people living inthe building, said Petet Taubkin, a Time Warnere official.