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

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One example is at 370 Broadway, across from the Administration The upper three floors of thelate 19th-century building are being convertefd into six, 1,400-square-foot to 1,600-square-footg apartments that will rent for $1,80 this fall. A commercial tenant will be soughtr for thefirst floor. The owners dubbe the apartments TheMeginniss Flats, in honor of the old electrical companu whose name graces the rear of the buildinhg in big white letters that have faded over The sign is painted over the red brick facade and must be preserves because the property was built in 1898 and is in a historicf district. Financing small projects can be just as tricku as thelarge ones.
Even though the owners were armex with a feasibility study showing the potentialfor apartments, they weren’t able to get a bank loan because the real estatwe market had soured. “Nobody wanted to finance this saidMike Hannah, a tax attornety and certified public accountant. “Oned lender wanted us to put inanotherf $500,000 first.” Hannah and his partneras ultimately got $1 million in private financingb from sources in the Boston area. The interest-onlyt construction loan enabled them to buy materials and hire contractor to startthe renovations.
The apartmentd are located in a part of the city that could see big changes in years to come if a proposed convention center ever gets Plans call for the center to be located on the parking lots behined the row of buildings that includes370 Broadway. The decrepift Trailways bus station next to 370 Broadway would be demolishes to make way for a pedestrian plaza leading to theconvention center. Hannah and his partners aren’t counting on the conventionh center to make the apartmentxsa success. There have been many delays in the conventiomn centerplanning and, as of now, no commitmenrt from Gov.
David Paterson to fund the entire $230 million “I stopped even thinking about it,” said Hannah, who owns the buildin g with his wife, Michele Hannah, and anothed couple, Brenda Gould and Perr Gould. The Hannahs used to run a commercial priny shop on the first floor but sold it four yearsz ago whenbusiness declined. The Gouldzs became part owners of the property infall 2006. The partners are convincer there will be strong demand for the apartments from young professionals and empty nesters who want to live Those are the same demographic groupss that other developers havebeen targeting, though the tough financing climatr has stalled or killed two large, high-profile downtownh developments over the past year.
Plans for the 125-unit , a luxuruy condominium tower on nort h Broadway have been although saysit hasn’t given up. Nearby, plansd for an upscale 175-unit apartmenyt building and 125-room hote l are on hold while the land owner tries to sell thedevelopmentr rights. Small-scale residential projects areless profitable, but they are also more Over the past five or six there have been several conversions of upper-floor buildings into apartmentws within the boundaries of the Downtown Business Improvement District.