A team led by real estate developer Jeff Buell and Chris Spraragen, the president of Schenectady Hardware & Electric, is purchasing Ellis Medicine's McClellan Street campus with potential plans to convert the site's former St. Clare's Hospital building into apartments.
Ellis Medicine’s board of directors has approved the sale of the 17-acre property, which is located at the corner of McClellan and Bradley streets, according to an announcement on Wednesday.
The organization announced in June that it would be closing its nursing home at the site and marketing the property.
The transaction is expected to close in the next two months, according to Buell. It does not include the Belanger School of Nursing, which Ellis Medicine will continue to operate, or two medical office buildings on the campus.
"We think that building dense housing in Schenectady is a winner," Buell said, citing the property's proximity to Central Park and a Market 32 grocery store as among its attractive attributes.
Buell said he expects the total cost for the redevelopment project, including the property purchase price, which he declined to specify, will clear $50 million.
The development team's preliminary design for the four-story, 365,000-square-foot former hospital building calls for about 200 apartments aimed at the middle range of the rental market, Buell said.
The development team is talking to multiple lenders but hasn't selected one yet, according to Buell, who said he hopes for construction to start early next year.
Buell said the building is in excellent condition and that its many windows make it compatible with a residential conversion.
The facility's wide hallways are its biggest challenge because they reduce the amount of potentially revenue generating space, he said.
The development team plans to seek historic preservation status for the former hospital building to unlock potential tax credits. It's had conversations with Schenectady Metroplex Development Authority regarding the project and will conduct community outreach as plans advance.
"We are excited to work with our partners at Schenectady County, Metroplex and Jeff and Chris' team to ensure that this property remains an economic benefit for our community," Paul Milton, Ellis Medicine's president and CEO, said in a statement.
Buell is a partner with Redburn Development Partners but said he's pursuing this project outside of the firm.
Re4orm Architecture of Schenectady and MATCH Consulting Co., a Clifton Park-based design firm owned by Heather Newman, Redburn's former director of architecture, are assisting with the project.
Buell and Spraragen are also partners in an effort to build a soccer stadium in downtown Albany.
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