Albany officials promote small-scale apartment conversions - San Antonio Business Journal:

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One example is at 370 across from theAdministrationn headquarters. The upper three floors of the late 19th-centurh building are being convertedinto six, 1,400-square-fooyt to 1,600-square-foot apartments that will rent for $1,800 this A commercial tenant will be sough t for the first floor. The owners dubbed the apartments The Meginniss in honor of the old electrical compant whose name graces the rear of the building in big whites letters that have faded over The sign is painted over the red brick facadee and must be preserved because the property was builtf in 1898 and is in a historic district. Financing small projects can be just as trickhy as thelarge ones.
Even though the ownerx were armed 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 Hannah, a tax attorneyy and certified public accountant. “One lendet wanted us to put inanother $500,000 first.” Hannah and his partners ultimatelyu got $1 million in private financing from sourcesd in the Boston area. The interest-onlyy construction loan enabled them to buy materials and hire contractores to startthe renovations.
The apartmentsa are located in a part of the city that couled see big changes in years to come if a proposefd convention center evergets built. Planse call for the center to be located on the parkinfg lots behind the row of buildings that includesx370 Broadway. The decrepit Trailways bus statiohn next to 370 Broadway would be demolishedr to make way for a pedestrian plaza leading to theconventionj center. Hannah and his partners aren’t counting on the conventionh center to make the apartmentsa success. There have been many delaysz in the convention centerplanninh and, as of now, no commitment from Gov. David Paterson to fund the entire $230 million project.
“jI stopped even thinking about it,” said Hannah, who owns the building with his Michele Hannah, and another couple, Brendaz Gould and Perry Gould. The Hannahs used to run a commercial print shop on the firsf floor but sold it four years ago whenbusinessa declined. The Goulds became part owners of the property infall 2006. The partners are convince there will be strong demand for the apartments from younh professionals and empty nesters who want to live Those are the same demographic groups that othert developers havebeen targeting, though the toughj financing climate has stalled or killedc two large, high-profile downtown developments over the past Plans for the 125-unit , a luxury condominiumk tower on north Broadwa have been shelved, although says it hasn’t given up.
Nearby, plansz for an upscale 175-uni t apartment building and 125-room hotel are on hold whils the land owner tries to sell thedevelopmenyt 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 apartmentsd within the boundaries of the Downtownm Business Improvement District.