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

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One example is at 370 Broadway, across from the Administration The upper three floors of thelate 19th-century buildingb are being 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 sought for thefirstf floor. The owners dubbed the apartments The Meginniss in honor of the old electricao company whose name graces the rear of the buildinv in big white letters that have fadedover time. The sign is painte d over the red brick facades and must be preserved becausew the property was built in 1898 and is in ahistoric district. Financint small projects can be just as trickyg as thelarge ones.
Even though the owners were armecd with a feasibility study showing the potentiallfor apartments, they weren’t able to get a bank loan becausee the real estate market had soured. “Nobody wanter to finance this project,” said Mike Hannah, a tax attorney and certifiedepublic accountant. “One lendedr wanted us to put inanothere $500,000 first.” Hannah and his partners ultimately got $1 million in privatwe financing from sources in the Bostoj area.
The interest-only construction loan enabled them to buy materialz and hire contractors to start the The apartments are located in a part of the city that coulds see big changes in yearws to come if a proposed convention center evergets built. Plansa call for the center to be located on the parking lots behins the row of buildings that includes370 Broadway. The decrepiyt Trailways bus station next to 370 Broadway would be demolishexd to make way for a pedestriah plaza leading to the convention Hannah and hispartneres aren’t counting on the convention center to make the apartmentz a success.
There have been many delays in the conventiohn centerplanning and, as of now, no commitment from Gov. Davifd Paterson to fund the entire $230 million “I stopped even thinking about it,” said who owns the building with his Michele Hannah, and another couple, Brenda Gould and Perry Gould. The Hannahds used to run a commercialk print shop on the first floor but sold it four yearzs ago whenbusiness declined. The Gould s became part owners of the property infall 2006. The partnersz are convinced there will be strong demancd for the apartments from young professionals and emptyy nesters who want tolive downtown.
Thoswe are the same demographic groupss that other developers have been though the tough financing climatr has stalled or killedtwo large, high-profile downtown developments over the past Plans for the 125-unit , a luxurgy condominium tower on north Broadway have been shelved, although says it hasn’tt given up. Nearby, plans for an upscale 175-unit apartmenft building and 125-room hotel are on hold whilw 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 there have been several conversions of upper-floof buildings into apartments within the boundariews of the Downtown Business Improvement Many projects have been partially subsidizecd by grants and low-cost loans administered by the , the and the stat Division of Housing and Communityt Renewal.
“We’re very encouraged that these propert y owners are doingthe six- to 10-uni t conversions and they have a waiting list of people to leass them,” said BID Executive Director Pam “It demonstrates there is a demandf for downtown living.” Officials are trying to get more developersz interested. Nearly 200 people attendef a forum in March at to learn abouty financial assistance and properties available for Besides370 Broadway, another conversioj is underway: the upper floors of 23 Norty Pearl St., above a Quizno’s, are beinb renovated into seven apartments by Gus Moutopoulosd and Steve Moutopoulos.
Also, Rosenblum Development want to converta four-story former warehousr and car dealership on Chapel Street into a seven-story, 20-unitt high-end condo. Like with any construction there are unforeseen problems once the work The budget for Meginniss Flats has balloonedxto $1.5 million, about $500,000 more than what was projected by a feasibilituy study done by the Other financing is coming from federal and states historic tax credits worth about $390,000 and a $60,000 New York Main Streett grant. The 2-bedroom, 2.5-bath units will have amenities that urban dwellers expect, such as hardwood floors, exposed bricko walls, granite counter tops and a high-tecuh security system.
For the time being, the apartments lack two othercritical elements: cablr TV and high-speed Internet access. The building is not servicedr by , a fact that surprisefd the developers after they were well into the Cable service might be available once ther e are people living inthe building, said Peter a Time Warner official.