EXCLUSIVE: The Arcade Is Going Condo UPDATED
Friday, January 03, 2020
Developer Evan Granoff has confirmed to GoLocal that The Arcade in downtown Providence is going condo. America’s first indoor shopping mall will be offered to the tenants first and then to other potential future buyers.
Until the restoration of the historic edifice by Granoff, which was completed in 2013, the building had a history of financial failure.
Both the first floor retail spaces, as well as the second and third-floor micro-lofts, will go condo this year.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTAfter being vacant for a number of years, Granoff transformed the building into mixed-use at a cost of $8 million.
“For 150 years the building was a business failure. It’s charm repeatedly saved it from demolition. We finally made it work as a business,” said Granoff.
Granoff’s transformation created global headlines. But, the business model was unknown. “I thought it would work, but no one had done micro-lofts like this before. We have had the ability to keep rents reasonable but realize fair market rates,” he said Thursday.
"When I proposed this concept there were no comparable properties. I am pretty sure that the Arcade was the first micro-apartment project built in the country, meaning it was built out with the vast majority of the units in the building being micro. Nobody knew what the acceptance or occupancy would be. There is rarely a vacancy in the building. That is a good measure of success as well as the project's solid return on investment. It's very cool that the Arcade could be the oldest indoor shopping mall in the country as well as the first micro-apartment project," said Granoff.
There were a number of challenges in the rehab, "I knew that our team could do a great historical renovation because we have renovated several landmark buildings in the city such as the Turks Head and Union Trust. This was a lot harder because we were also changing use from commercial to residential on the top 2 floors. That meant taking a building built in 1828 to 2012 fire and building code. The Station Nightclub fire raised that bar. A lot of the credit for success belongs to the RI Historical and Heritage Commission and the Providence Fire Dept. for working to keep the historic nature of the building while adapting it to the current code."
Micro-lofts will start at $130,000 to $140,000 -- there are 48 units.
And retail spaces will start at $125,000 per unit -- there are approximately 20 units.
"The housing market is strong and interest rates are low. Springtime is just around the corner so it seemed like a good time to get the project underway. With separate HVAC, electrical panels, meters and water heaters for each unit the building lent itself very well for a condominium conversion," added Granoff.
The Greek revival structure was designed by Russell Warren; Tallman & Bucklin.
When the Arcade Re-Opened in October 2013, GoLocal wrote:
America's oldest indoor mall, the Providence Arcade, is now open for business once again. Since 2008, the Westminster Street shopping center had been closed for renovations, and today's ribbon-cutting ceremony marked the beginning to its new era.
In a ribbon-cutting ceremony on the Arcade's front steps, owner and developer Evan Granoff spoke to a large crowd about the new shops and residences, proclaiming his excitement for the downtown site's "economic viability for the first time in its history."
Eleven retail shops are now open, with six more coming soon, which are all locally owned. The shops offer a wide variety of products and services including art galleries, restaurants, clothing outlets, and Providence's first Bicycle Garage.
Governor Lincoln Chafee was in attendance, speaking briefly at the ceremony, thanking Granoff for his efforts. Mayor Angel Taveras also spoke of the multiple newly established business, and expressed his gratitude, "Thank you for saving this beautiful and historic Arcade."
Upon the reopening Curbed wrote, "In 2008, Rhode Island's Providence Arcade was in trouble. Considered America's first indoor mall, the nearly 200-year-old downtown building closed after struggling to fill its cramped commercial spaces. The arcade needed an overhaul, but few viable options existed: when the possibility of a gut job arose, preservationists raised holy hell. In the end, the shopping center and its snug quarters proved just the right fit for a growing housing trend: micro apartments.
This story was first published 1/2/20 2:22 PM
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