Keohane Company, Boston, Massachusetts - Real Estate Development, Construction and Property Management

Condo-maximum - 107 residential units being developed downtown
By DAVID J. ORTIZ, Standard-Times staff writer

The parcels shaded in purple are where new condominiums or rental apartments are being developed. The yellow line outlines the city's Central Business District.

Downtown New Bedford is undergoing a residential renaissance, with more than 100 condominiums and rental apartments slated to be built in a 10-block area this year.

The flurry of residential construction is partly a result of new zoning laws the city recently adopted to transform the historic business district into a neighborhood inhabited by professionals and empty-nesters expected to shop, do business and go to restaurants in the street-level retail shops below their second- and third-story homes.

"We're creating an entire neighborhood with all the added benefits that go along with it, particularly in terms of economic development," said Antone G. Souza Jr., executive director of the Waterfront Historic Area League. "These people are going to require food, they're going to require services. We're trying to turn the business district into a 24-hour neighborhood."

In all, 107 condos and rental apartments are planned to hit the market this year, mostly along a three-block stretch of Union Street, according to the New Bedford Office of City Planning. The projects have been spurred by a small handful of prospecting real estate developers seeking to get in on the ground floor of a hoped-for urban renaissance, after the city eased parking requirements and adopted other zoning changes to spur mixed-use developments downtown three months ago.

"Market rate residential development in this neighborhood didn't exist previously, because it was viewed solely as an urban business center," said James Muse, a local developer who is building dozens of condominiums downtown. "There is an opportunity here from a number of standpoints, as far as I'm concerned. Residential development will provide 24-hour activity and home ownership. That's a significant economic stabilizer. Only two and a half years ago none of this was happening."

At first glance, the new rules mean less tax money for the city, as the residential tax rate is half the business tax rate, said City Planner David A. Kennedy. But city officials hope the relaxed zoning requirements will ultimately bring more money to the city because many of the buildings already being developed sat vacant on the market for years -- in some cases for decades, said Mr. Kennedy.

As an example, Mr. Muse said that mixed-use developments in three of his downtown buildings are already providing the city with more than four times the net property tax revenue than before, since he spent more than $3 million in physical improvements to the Jimmy Connors building, the Smith building and the Tabor building.

WHALE, a nonprofit historic preservation and development organization with deep ties to city government, is leading the charge to build residential homes downtown, building 45 of the new housing units.

The organization is working with developers to build 28 affordable, rental loft apartments at Coffin Lofts, two buildings adjacent to the Star Store. WHALE also plans to build 17 units in the Haste and Eddy buildings on Union Street.

Many of the buildings that will house new residents are being renovated in a historically sensitive manner. Developer Mark Truran of Wareham, who is creating 11 market rental apartments on the second floor of the Bristol Building at 740-768 Purchase St., is renovating the facade of the building to its original 1914 look. The apartments are expected to hit the market in the spring, Mr. Truran said.

Another historical renovation is occurring at 260 Union St., where Mr. Muse has almost completed four apartments above two commercial spaces. Mr. Muse said he will begin marketing the units in the next couple of weeks.

Mr. Muse is also transforming the old Standard-Times building, renovating the former newspaper offices into six large condominium lofts of 1,500 to 3,000 square-feet each. Sixty percent of the building will be developed into commercial space, he said.

The project is close to final design, and Mr. Muse is in the process of receiving historic applications. Construction should begin in the early spring, Mr. Muse said.

At 145 Union, Mr. Muse has sold seven of 11 condos he completed last year in the Jimmy Connors building, which houses Ernie's Deli on the ground level.

Developers The Mount Vernon Group razed the building that housed the former Lupos Restaurant at the corner of Acushnet Ave. and William Street last fall and plan to build five residential units above retail shops at 363 Acushnet Ave.

Developer Denis Keohane said he plans to build 20 residential units in the Keystone buildings complex and fill them with "empty-nesters and young professionals." The project will also include parking, he said.

Mr. Keohane said he bought the building outright for $190,000, and plans to wait several months and analyze the developing residential market before deciding what type of development is right for the Keystone complex.

"I'm going to wait for (WHALE) to make a move first, and I'll make my own decision then," said Mr. Keohane. "I'm hoping they'll go middle to upscale. I'll build high-end condos if they're going upscale themselves."

Mr. Keohane is also building three market-rate rental apartments above a storefront at 44 Union St., a the building he owns next door to his bar, The Catwalk. He said he already has tenants for the building and expects them to be able to move in come June.

And Mr. Keohane is also the contractor on a mixed-use project on Water Street by Kathy Dehner, owner of the cafe Java Jungle. The project, next door to the cafe, will include street-level commercial space and two apartments upstairs.

Two other residential units are planned above an art shop at the corner of William Street and Johnnycake Hill.