Developer Sam McDonald of Property Results has acquired the one-story warehouse at 310 Stockton St. for $1.5 million, and interior demolition work is already underway.
McDonald said he hopes to have the apartment complex, called Stella 360, finished by the end of the year.
“We’ve been working with the seller for a while and got started on certain things” before closing on the sale, said McDonald.
The seller is staying on as a tenant in a separate 19,000-square-foot building that sits on the parcel, which covers a city block. They do business as Capital Door Systems.
The finished apartments will have high ceilings and rooftop decks, but McDonald said one of its best selling points will be the large windows.
“The main thing we are working on are the windows. This is a tax credit project, and we are keeping the windows,” said McDonald. “It’s a one-story building, so there is not a lot of sizzle to it as it sets, but it’s a great residential space because of the light coming in.”
He said he has secured an acquisition and construction loan from Wells Fargo. McDonald did not specify the amount. MGT Construction is the general contractor for the project, which was designed by architect Joe Yates.
Two permits are pending for the property: a plumbing permit with cost of work listed as $194,559 and a building permit for $570,000.
McDonald emphasized the role that historic tax credits, which are granted by the state and federal government in amounts equal to nearly half of a project’s expenditures, played in getting the project off the ground.
“I wouldn’t do that building without the ability to use tax credits. This type of construction is more expensive than new construction, so you need a good incentive,” McDonald said.
The benefit is that the character of the neighborhood is preserved.
“What would Manchester look like if we tore down and built new buildings? It wouldn’t have the same feel that it has. If you look at what people like about Richmond, it’s history,” McDonald said.
McDonald isn’t new to tax credit rehabilitation work, either. He also developed Emerick Flats condominiums, a former Chevrolet dealership just off Broad Street downtown, as well as the Power Plant at Lucky Strike. McDonald also developed the Paper Factory, which is in Manchester.
“The tax credit program is still what makes these things happen in Richmond,” McDonald said.
Al Harris covers commercial real estate for BizSense. Please send news tips to [email protected]