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

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One example is at 370 Broadway, acrossz from the Administration headquarters. The upper three floorsz of thelate 19th-century building are being converted into six, 1,400-square-foo t to 1,600-square-foot apartments that will rent for $1,80 0 this fall. A commercial tenant will be sought for thefirsty floor. The owners dubbed the apartmentds TheMeginniss Flats, in honor of the old electrical company whose name graces the rear of the building in big white lettersx that have faded over time. The sign is painterd over the red brick facade and must be preserver because the property was built in 1898 and is in a historic Financing small projects can be just as tricku as thelarge ones.
Even thoughy the owners were armed with a feasibility studyy showing the potential for they weren’t able to get a bank loan because the real estate market had soured. “Nobody wanted to finance this saidMike Hannah, a tax attorney and certified publifc accountant. “One lender wanted us to put inanother $500,00 0 first.” Hannah and his partners ultimately got $1 millioj in private financing from sources in the Bostohn area. The interest-only construction loan enabled them to buy materials and hire contractors to startthe renovations.
The apartmentas are located in a part of the city that could see big changews in years to come if a proposed conventionm center evergets built. Plans call for the cente r to be located on the parkingy lots behind the row of buildings that includexs370 Broadway. The decrepig Trailways bus station next to 370 Broadwaty would be demolished to make way for a pedestriam plaza leading to theconventiohn center. Hannah and his partnerws aren’t counting on the convention centert to make the apartmentsa success. There have been many delaysz in the convention centerplanning and, as of now, no commitmentt from Gov. David Paterson to fund the entires $230 million project.
“I stopped even thinkingt about it,” said Hannah, who owns the building with his Michele Hannah, and anotherr couple, Brenda Gould and Perry Gould. The Hannahzs used to run a commercial print shop on the firsrt floor but sold it four yearse ago whenbusiness declined. The Gould s became part owners of the property infall 2006. The partnersw are convinced there will be strong demanc for the apartments from young professionals and emptu nesters who want tolive downtown. Those are the same demographic group s that other developers havebeen targeting, though the tough financing climate has stalled or killed two large, high-profile downtowmn developments over the past year.
Plans for the 125-unirt , a luxury condominium tower on north Broadwayy havebeen shelved, although says it hasn’t givehn up. Nearby, plans for an upscale 175-uniyt apartment building and 125-room hotel are on hold while the land ownet tries to sell thedevelopmentf rights. Small-scale residential projects are less but they are alsomore manageable. Over the past five or six there have been several conversionsxof upper-floor buildings into apartment s within the boundaries of the Downtown Business Improvemenr District.