Nice Place to Visit; But You Can't Live There

On any given Downtown plan that you might read, there will be a casual mention somewhere of converting buildings or upper floors of downtown buildings to residences. I had no idea how many buildings sit with retail on the ground level and nothing going on upstairs. And, it's a well documented fact that downtown residents are an important thing in making downtown work: having people out and about increases safety, retail purchases, culture attendance and more. So, cool, let's populate those puppies.

Not that easy. A comprehensive article by Jeff Mucciarone at Hippo Press in Manchester NH points out that it is very hard to rehab a building economically.  Bringing old construction up to zoning standards is often difficult, sometimes impossible and always expensive. Whether it's safety, the ADA requirements, or just space for an elevator, it's going to be a challenge.

Another big hurdle is parking. Most urban dwellers have a vehicle, and they want a safe, convenient location to park it. Usually, historic buildings don't have dedicated parking, and it is difficult to get long-term leases on public garage space. Deal breaker.

Also, bank loans for the large amounts of money needed are very scarce. Some grants or incentive funds may be available, but those haven't been too helpful in stimulating developers. Successful developers have learned to go to 5, 6, or 7 different sources to help finance the project. The good news is that when you do build it, they do come.

The Allegheny Institute for Public Policy in Pittsburgh has an interesting take on the issue: when government steps in and provides a gap loan, it may help help the project happen. But it may also inadvertently defeat the law of supply and demand. And keeping the market price up means that the construction probably won't be in the affordable range that city dwellers are looking for, so units end up costing $300,000 to $1 million.

Not surprisingly, some projects creating artist studio space have been successful. Nashua NH has one apartment conversion success story, the Flanders Building on West Pearl Street. Just off Main Street in mid-town, the Flanders is in a perfect location, surrounded by fun shops and good restaurants. The developer owner now has it up for sale. Manchester has had the Opera Block, Historic Chase Block and the Dulap Building renovated.

Maybe we need some creative thinking here. Reuters reported that budget hotel operator Travelodge in London is creating a "recyclable" hotel from container crates stacked and bolted together. Check it out here.  Okay, something more traditional, but is there a less expensive way to make these conversions? Can we go up and get more units in the same footprint? Can we rough units out and let the owners complete them? Let's figure something out!
    

The Flanders Building at 116 West Pearl, Nashua NH has two retail units on the street level and 13 one or two bedroom apartments above.   Currently for sale.