Albany officials promote small-scale apartment conversions - The Business Review (Albany):

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One example is at 370 across from theAdministration headquarters. The uppee three floors of the late 19th-century buildingt are being convertedinto six, 1,400-square-foot to 1,600-square-foot apartments that will rent for $1,80o0 this fall. A commerciak tenant will be sought for the first The owners dubbed the apartments The Meginniss in honor of the old electrical company whose name graces the rear of the building in big white letters that have faded over The sign is painted over the red brickk facade and must be preserved because the property was built in 1898 and is in ahistorix district. Financing small projects can be just as tricky as thelargse ones.
Even though the owners were armed with a feasibilitt study showing the potentialfor apartments, they weren’t able to get a bank loan because the real estates market had soured. “Nobody wanted to finance this project,” said Mike Hannah, a tax attorney and certifiedfpublic accountant. “One lender wanted us to put inanothefr $500,000 first.” Hannah and his partners ultimatelhy got $1 million in privatw financing from sources in the Boston area.
The interest-only construction loan enabled them to buy materialws and hire contractors to start the The apartments are located in a part of the city that coulr see big changes in years to come if a proposedx convention center evergets built. Pland call for the centet to be located on the parking lots behind the row of buildinges that includes370 Broadway. The decrepit Trailways bus station next to 370 Broadwaty would be demolished to make way for a pedestriann plaza leading to the convention Hannah and hispartners aren’t counting on the convention center to make the apartments a There have been many delaysz in the convention center planning and, as of now, no commitmentf from Gov.
David Paterson to fund the entirs $230 million project. “I stopped even thinking about it,” said who owns the building withhis wife, Michele and another couple, Brenda Gould and Perry Gould. The Hannahs used to run a commercial prinyt shop on the first floor but sold it four years ago when business The Goulds became part owners of the propertg infall 2006. The partnere are convinced there will be strong demandr for the apartments from younv professionals and empty nesters who want tolive downtown.
Those are the same demographicf groups that other developers have been though the tough financing climate has stalled or killed two large, high-profile downtown developments over the past Plans for the 125-unit , a luxurhy condominium tower on north Broadway have been shelved, althouggh says it hasn’t givem up. Nearby, plans for an upscale 175-unit apartmentr building and 125-room hotel are on hold whils the land owner tries to sell thedevelopmengt 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 buildings into apartments within the boundaries of the Downtownm Business Improvement District. Many projects have been partially subsidizeed by grantsand low-cost loans administered by the , the and the statwe Division of Housing and Community “We’re very encouraged that these property owners are doinfg the six- to 10-unit conversions and they have a waiting list of people to lease them,” said BID Executive Director Pam Tobin. “It demonstrates there is a demandr fordowntown living.” Officialss are trying to get more developers interested.
Nearlyh 200 people attended a forumn in March at to learn about financiakl assistance and properties available for Besides370 Broadway, another conversion is the upper floors of 23 Northu Pearl St., above a are being renovated into seven apartmentss by Gus Moutopoulos and Stevde Moutopoulos. Also, Rosenblum Development wants to converta four-story formet warehouse and car dealership on Chapel Street into a 20-unit high-end condo. Like with any construction project, therse are unforeseen problems once the work The budget for Meginniss Flats has balloonedto $1.5 about $500,000 more than what was projected by a feasibilityu study done by the ALDC.
Other financinfg is coming from federal and statwe historic tax credits worthabout $390,000 and a $60,000 New York Main Streetf grant. The 2-bedroom, 2.5-bath units will have amenities that urbabndwellers expect, such as hardwood floors, exposedr brick walls, granite counter tops and a high-tecgh security system. For the time being, though, the apartments lack two othercritical elements: cable TV and high-speee Internet access. The buildinyg is not serviced by , a fact that surprisede the developers after they were well into the Cable service might be available once there are peoplwe living inthe building, said Peter Taubkin, a Time Warnedr official.