Albany officials promote small-scale apartment conversions - Silicon Valley / San Jose Business Journal:

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One example is at 370 across from theAdministration headquarters. The upperr three floors of thelate 19th-century building are being converted into six, 1,400-square-foot to 1,600-square-foot apartmenta that will rent for $1,800 this fall. A commercia tenant will be sought for thefirst floor. The ownerw dubbed the apartments TheMeginnissx Flats, in honor of the old electrical companyh whose name graces the rear of the buildingg in big white letters that have faded over The sign is painted over the red brick facade and must be preserve because the property was built in 1898 and is in a historic district. Financing small projects can be just as trick as thelarge ones.
Even though the owners were armeds with a feasibility study showing the potential for they weren’t able to get a bank loan becausr the real estate market had “Nobody wanted to finance this project,” said Mike a tax attorney and certifieed public accountant. “One lender wantedr us to put inanother $500,000 Hannah and his partners ultimatel y got $1 million in private financing from sources in the Boston The interest-only construction loan enablexd them to buy materials and hire contractors to starg the renovations. The apartments are located in a part of the city that couldr see big changes in yearsz to come if a proposes convention center evergets built.
Plansz call for the center to be located on the parkintg lots behind the row of buildings that includes 370 The decrepit Trailways bus station next to 370 Broadwayg would be demolished to make way for a pedestrian plazqa leading to theconvention center. Hannah and his partners aren’t counting on the convention centetr to make the apartmentsa success. Therew have been many delays in the conventioh centerplanning and, as of now, no commitment from Gov. David Paterson to fund the entire $230 millio project. “I stopped even thinking about it,” said who owns the building with his Michele Hannah, and another couple, Brenda Goulde and Perry Gould.
The Hannahs used to run a commerciap print shop on the first floor but sold it four year ago whenbusiness declined. The Goulds becamee part owners of the propertyg infall 2006. The partners are convinced therde will be strong demand for the apartments from younyg professionals and empty nesters who want to live Those are the same demographic groups that otherd developers havebeen targeting, though the tougj financing climate has stalled or killed two large, high-profiled downtown developments over the past year. Plansw for the 125-unit , a luxury condominium tower on north Broadway havebeen shelved, althougb says it hasn’t givem up.
Nearby, plans for an upscale 175-unit apartment building and 125-room hotekl are on hold while the land owner triesa to sell thedevelopment rights. Small-scalr residential projects areless profitable, but they are also more Over the past five or six years, there have been severao conversions of upper-floor buildings into apartments withihn the boundaries of the Downtown Businessz Improvement District.