A large group of historic properties were sold in downtown Albany this month, and the deal could be a major milestone in the ongoing transformation of the neighborhood.

Over the span of two days last week, Redburn Development Partners closed on "The Kenmore Portfolio," which includes the prominent Kenmore Hotel and Steuben Club buildings on Pearl Street, as well as the Capital Repertory Theatre building.

Redburn is planning apartment conversions for many of the buildings, which it sees as a continuation of downtown's recent shift toward being a residential, "18-hour" neighborhood.

"We think that we have the correct vision for what's needed in downtown Albany," said Jeff Buell, one of Redburn's principals, today via phone. "I think it's an absolutely transformational project that must be done if Albany's going to be a 21st century city."

Here are a few more bits about what's happening.

The buildings



16 Sheridan Ave

The properties that are a part of this portfolio:

+ The former Times Union building at 16 Sheridan Ave

+ The Kenmore Hotel on Pearl Street

+ The Steuben Athletic Club building on Pearl Street

+ The building that currently houses the Capital Repertory Theatre, along with the attached parking garage

+ The Kennedy Garage on Columbia Street

Update: Mike DeMasi has more details about the structure of the deal, which includes a planned longterm lease for 1 Steuben. [Biz Review]

Buell did not disclose the purchase price.

Another two properties -- 39 Columbia Street and 55 Columbia Street -- are also in the mix. Buell said Redburn could close on those sometime after the first of the year.

(A Redburn proposal for conversion of 39 Columbia Street, with approximately 46 residential units, is on the draft agenda for the December planning board meeting.)

The plan



The Kennedy Garage on Columbia Street.

Redburn is currently planning residential conversions of 16 Sheridan, the adjacent (and connected) Kenmore and Steuben buildings, and the Kennedy Garage on Columbia Street. All together it's eyeing roughly 350 new residential units and 75,000 square feet of commercial space.

Ahead of the sales closing, Redburn has been pursuing approval from the Albany planning board for the conversions. Redburn got approval for a plan that includes 133 apartments at 16 Sheridan back in August. And in November it got approval for 59 residential units at 1 Steuben and 63 units in the old Kenmore Hotel. The board also got its first look at a proposed residential conversion of the upper floors of the Kennedy Garage at 43 Columbia Street -- one of the first parking garages in Albany -- for 27 units.

Jeff Buell said work has already started at 16 Sheridan, and Redburn is aiming to be finished by the end of next summer. "It's an aggressive schedule. It's a lot of construction in that amount of time."

He also said that Redburn has a signed agreement with an out-of-town operator for a "funky, cool" restaurant that will occupy a section of the building near the old loading dock -- a name will be announced in a few months.

Work on the Steuben and Kenmore buildings could start in the spring. Buell said the conversion of those buildings will be more complicated and could take 15-18 months.

And the Capital Repertory Theatre building? It will continue to be the Cap Rep building for the meantime. Buell said Redburn will honor the theater org's lease, and is ready to work with The Rep as it plans its move up Pearl Street to a new theater in a converted space at Livingston Ave. (The theater project is on the draft agenda for the December planning board meeting.)

Buell said Redburn has been thinking about what to do with the building and would settle on what's next after The Rep moves out.

This is a significant deal

Downtown Albany has been experiencing a slow and steady change over the last decade into something more like a residential neighborhood as tens of thousands of square feet of old office space has been converted to apartments, with plans for more on the way.

But local officials and other business owners have long viewed this group of buildings -- the Steuben and Kenmore buildings especially -- as a key piece of the picture because of their prominence and the square footage they represent. (The properties had been vacant and for sale for years, and the former owner had fallen behind on the taxes until reaching a settlement with Albany County last year.)

So adding 300some new households to the neighborhood and, potentially, re-lighting the retail space on Pearl Street would be a big step in the evolution of this part of the city.

It's also notable because of the history of these buildings. The Kenmore, especially, has all sorts of local architectural, social, and cultural history associated with it.

Another important angle: The Sheridan, Kenmore, and Steuben projects will be subject to the city's new inclusionary zoning requirement. Buell said back in August that rents for the Sheridan building would range from $800-$1,700 -- and 3/4 of the units would have an "all-in" price that would include utilities and be below $1,400 per month.

A supermarket, eventually?

Jeff Buell has previously stated an intense desire to see a supermarket in downtown Albany. And at a planning board meeting back in August, he told the board he'd be willing to offer an operator free rent to make it happen.

On Monday he reiterated a desire to make something happen on the front, encouraging anyone interested in pursuing it to contact Redburn.

Earlier

+ A walkthrough of the old Kenmore Hotel and Steuben Club buildings in downtown Albany

+ A look around the Maiden House residential + retail conversion in downtown Albany