A downtown Syracuse building built in the 1950s could be redeveloped into residential apartments and office space if the city approves developer plans next month.

Acropolis Center LLC has proposed a reconstruction of Jefferson Center, a former Kmart location at 115 E. Jefferson St. The estimated cost of the project, which includes residential apartments as well as office space, is $10 million, and the construction period will last 10 to 12 months.

Steve Case, a developer at Acropolis Center LLC, said the company has plans to build two floors of residential apartments on top of the existing building. The addition would include 28 residential units, Case said.

The proposed development would also involve a new building facade and a 46-space underground parking structure.

The Jefferson Center proposal, if approved by the city, would be one of the latest redevelopment projects in downtown Syracuse. Several buildings have been redeveloped in the area in recent years.

The Dey Plaza building, located at 401 S. Salina St., was constructed in 1893 and previously housed the Dey Brothers Department Store. The building, currently owned by Paramount Realty Group, LLC, is now a luxury apartment complex. The company has announced plans to convert office space into additional apartments.

The Dey Plaza building would add 23 apartments to its existing 61 residential units, said Robert Doucette, a developer at Paramount Realty Group, LLC. The new apartments will have either one or two bedrooms, the same style as the existing units.

Oak Knitting Mill, located in Syracuse’s Franklin Square neighborhood on 102 West Division Street, was a 20th century knitting mill that has since been reconstructed into a loft-style apartment complex with 38 units. It opened in fall 2017.

Joe Gehm of Lahinch Group, LLC, and a co-partner and developer of the Oak Knitting Mill apartments, said the city has seen a resurgence in downtown development and living.

Honora Spillane, executive director of the Syracuse Industrial Development Agency, said increased redevelopment of buildings downtown is representative of regional and national trends. Companies and residents want to be in more urban settings, she added.

“Downtown occupancy is very strong in the residential apartments and has remained very strong over the past few years as new units continue to come online,” Spillane said.

The occupants of downtown residential properties are primarily people in their 20s or people without kids, she said. Younger people want to live closer to their jobs, she added.

Gehm said future forecasting trends show a downtown occupancy rate above 95 percent. He said he thinks the occupancy rate will stay high, but he added that the addition of new downtown developments could make it more difficult to fill buildings as quickly.

Franklin Square, where the Oak Knitting Mill apartments are located, has not seen a similar apartment development frenzy because of a “scarce supply of buildings,” Gehm said. The Franklin Square neighborhood has seen an increased demand for retail development, he added.

SIDA is responsible for approving the Jefferson Center proposal in downtown Syracuse. Spillane said the agency encourages businesses and private developers to invest in the city.

Spillane said she thinks SIDA has everything it needs to hold a public hearing on the Jefferson Center project and bring it to the agency’s board for approval.

“A vibrant downtown is great for the city. It’s great for the region,” Spillane said.

Published on October 30, 2018 at 10:18 pm

Contact Emma: esfolts@syr.edu