Office-to-Apartment Conversion of Dunlap Building Proposed in Manchester

On May 1, 2024, the Manchester Planning Board considered plans for two Elm Street projects resulting in 70 new downtown apartments. The board meeting took place in City Hall’s aldermanic chambers at 6 p.m. This meeting was a long-awaited event for revitalizing the downtown area.

The board considered a site plan to renovate the historic Dunlap Building at 959 Elm, turning the current office space into 36 studio and 1-bedroom apartments. The plans would include a new build at 3505 Elm Street, using space containing a parking lot for a five-story building with a first-floor commercial space and 37 1-bedroom apartments on the remaining floors. To convert the office space into apartments, developers needed to acquire a conditional use permit.

The city’s aldermen approved the project for 79-E tax relief on April 16. North Street purchased the building from Paul Smith, the Benefit Strategies founder. This company previously occupied the building’s upper floors. Documents filed with the City of Manchester stated the sale was contingent on receiving the tax benefit.

The sole concern came from Alderwoman Christine Fajardo, who represents Ward 4. Alderwoman Fajardo’s concerns included a lack of involvement from the Historical Commission.

This tax credit is good for five years. With an expected assessed tax value of $5.7 million, up from $3 million, there will be an additional $40,000 more in property taxes yearly.

The project had to meet several key criteria to qualify for the tax incentive. One of the most important criteria is that the rehabilitation costs must be at least 15% of the property’s pre-rehabilitation assessed valuation.

Joseph Kelly Levasseur, chair of the Manchester Board of Mayor and Aldermen (BMA), stated that these and other coming apartments will address a housing shortage. The addition of these new buildings will lower rent costs. The property owner will be able to delay paying the property taxes on the improvement value.

This building is on the National Register of Historic Places and was constructed in 1879. City records indicate that the previous renovation was in 2010 when Benefit Strategies expanded. Campo Enoteca and Taj India, the first-floor restaurants, opted to stay. At an April 18 meeting, the developer stated that the new owners planned to lease the third floor to a new tenant.

Citing a decline in the demand for office space, the developer saw the need for a residential change. There was a concern that it would be difficult to find commercial tenants to occupy the upper floors.

Jodie Nazaka, director of the Manchester Economic Development Office, cited a need to consider unused commercial and office space in developing residential units downtown. Nazaka cited commercial vacancies being on the rise as remote work increases in a letter to Manchester aldermen.

Nazaka also cited a need for balance between the downtown workforce, amenities, and residential properties. Without that balance, she expressed concern that too many residential properties would lead to residents commuting elsewhere for shopping. First-floor conversions were of particular concern.

According to documents, North Street purchased the building from Smith for $2.25 million. Construction began June 1 and has a May 2025 completion date. The 1-bedroom apartments are 530 sq. ft. and the studios are 315 sq. ft.

The National Register of Historic Places listing was free from renovation restrictions. All the apartments are modern and efficient, but the historic building facade is staying.

The 1305 Elm Street project is considered an infill project because of the vacant space. In December 2023, the project received permission to start building and reconfiguring the parking on Myrtle Street. In addition to the 37 apartments, this new building would have four commercial units on the first floor.

Norris Viviers, owner of the lot, decided it was time to develop the lot. To increase the amount of parking, he opted to have an empty house on Myrtle Street torn down. There will be 18 more spaces with this building out of the way.

Viviers cited a desire for the apartments to be furnished and similar to his units in the Bedford Block at 1361 Elm Street. Much of this development’s success has been due to medical professionals who require six months of housing for job-related travel.