This story was originally produced by the Valley News. NHPR is republishing it in partnership with the Granite State News Collaborative.
The city of Claremont has completed the sale of a former state office building with a final sale price of $807,000, about $200,000 less than was originally negotiated with the developer.
1852 MB Funds, of Darien, Conn., plans to convert the four-story brick building at 17 Water St. into 30 one- and two-bedroom apartments.
Matt Bacon, a principal with 1852 MB Funds, said last week when a more comprehensive inspection of the property was conducted in the last few months, additional areas needing repair were discovered, particularly on the side that is exposed to the Sugar River.
“Our team has hired Ganek Architects, a firm very experienced with historic mill renovations such as this exciting project on Water Street and will be proceeding diligently to obtain National Park Service approval (of historic tax credits) for this historically-qualified conversion project,” Bacon, a senior advisor with Anagnost Realty and Development of Manchester, said in an email Wednesday.
While working with NPS, developers will also be working with the city on any local approvals to ensure construction can begin as soon as possible, Bacon said. Franklin Savings Bank is financing the construction.
While it is too early to establish with certainty a timeline for completion, Bacon anticipates occupancy by the middle of 2027.
“Our goal is to complete permitting, construction, and occupancy requirements to provide a couple dozen brand-new luxury housing units with beautiful views of the Sugar River to meet the needs of Claremont’s current or new residents,” Bacon said.
Further negotiations with the city reduced the sale price and pushed the projected closing date from early December to last week.
In August, 1852 MB Funds signed a purchase and sales agreement to buy the building for $1,015.000 and had 30 days to finalize the sale with an option to extend that deadline another 60 days.
An initial deposit of $150,000 was made and a second $150,000 deposit was paid when the deadline was extended to early December, the city said.
Mayor Dale Girard described the project as badly needed and said it will help address the city’s housing needs.
“I’m looking forward to their group providing more options for housing which is needed in every community,” Girard said.
According to the city’s assessing database, the four-story brick building was constructed in 1900 and has a gross area of 32,000 square feet.
The building was originally part of the Monadnock Mills, a textile manufacturer that owned several other structures on both sides of the Sugar River. Monadnock Mills shut down in the 1930s.
In 1980, the city gave the building to the state, which renovated it for offices for the Department of Motor Vehicles and Health and Human Services. The DMV left several years ago and HHS permanently vacated its offices in February 2023 after pipes froze and burst.
At the urging of former city manager Yoshi Manale, the City Council agreed to buy the building in March. The resolution passed by the council said the sale of the building would be used to pay the $700,000 loan the city took out for the purchase.
The current assessed value is $1.4 million.
As of mid-August, the city had spent $47,000 in carrying costs to maintain the building. Girard said Wednesday he did not have updated carrying costs but was assured by City Manager Nancy Bates at the most recent council meeting that the sale price will cover all the city’s costs. Messages left for Bates last week were not returned.
The city also purchased 20 parking spaces in front of the building for $45,000 shortly after buying the building, but those spaces have not been designated for 17 Water St.
