Clark Building 158 Hartford Rd 27,783 SF Office Building Manchester, CT 06040 $1,800,000 ($64.79/SF)

Bring offers! 31,783 SF building on 1.61-acres. Former mill building on the National Historic Register. Currently an office building in very good condition with plans to convert to 29 1-Br residential units. Residential is an as-of-right use in this zone. Elevator, HVAC, sprinklers, rooftop solar, etc. : everything in good condition. Phase 1 from several years ago. Previous financing no problem.
Conversion costs are estimated to be ~$7MM and upon completion the developer would get over $3MM in tax credits. 25% of hard costs in state tax credits which Eversource and other companies purchase dollar for dollar. 20% of hard and soft costs from federal tax credits which can be used against the developers passive income
I have spoken with the CT administrator of the program. She confirms all of the above and adds that the state credits can only be utilized by a C corp and that is why developers sell them to corporations like Eversource for 100% of face value. The State web site for this program is here: https://portal.ct.gov/decd/content/historic-preservation/02_review_funding_opportunities/tax-credits/historic-rehabilitation-tax-credit.
It appears that the federal tax credits may not be sold but can be used against your annual tax return over 5 years. See here: https://www.irs.gov/businesses/small-businesses-self-employed/rehabilitation-credit.
The city of Manchester is 110% behind this project, according to the seller.Average rent for a 1-bedroom apartment in Manchester are ~$1,750, according to various sources. New units such as these would likely rent for more.
The parking lot is much larger than necessary. Possible value add construction there, whether it is a long row of garages or additional resie units.