A New York development story.

Developing in New York does not have to be a nightmare where everything goes wrong and the bureaucracy seems to doom the project with roadblocks. No, we recently completed a project that went smoothly from the beginning, concluded on time and within budget and rented above projected prices.

What was the key? Simply put: planning and working with the various city agencies in an atmosphere of cooperation.

The project involved two five-story buildings we purchased last year on the east side of the Avenue of the Americas between 21st and 22nd Streets in the heart of the trendy Chelsea area and part of the Women's Mile landmark district.

The 100-year-old building is most often remembered as the home of Wolf Paper, whose an iconic sign greeted those coming north on Sixth Avenue. We decided to convert the property to seven luxury, loft-style rental units with two retail stores on the ground floor.

In August 2003, about a year after a broker brought the property to our attention, we closed, but our work on the project had begun months earlier. We hired architects and engineers as soon as we signed a purchase agreement. While there was a risk the deal might not close, moving ahead on the project saved time and money. And by having additional time, we could make better decisions.

Only 11 months after closing, an unusually short turn-around for a project of this depth and quality, the building was ready for occupancy. The cooperation and efforts of various city agencies helped immensely. Sure, there were moments of difficulty, but it was not the nightmare that developing in New York City can be.

The project presented a number of challenges. It was a complete gut rehab with the additional challenge of matching floors levels in separate buildings. Because the buildings are in a landmark designation area, we had to work closely with the Landmarks Preservation Commission. Their approval was needed to return the exterior to its original limestone state and to install high-quality, triple-glaze windows to reduce noise from traffic on Sixth Avenue. Installing newly designed store fronts for the retail areas also required approval.

The Landmarks Preservation Commission recognized our commitment to historic restoration and was eager to work closely with us. Their suggestions regarding choice of colors, selection of the mullions on the storefronts, restoration of the cornices and other items proved invaluable.

We also worked closely with the Buildings Department to develop a fire egress plan using only one exit. As part of the plan, we installed a full sprinkler system in the building, which is now prepared to meet future requirements for all city buildings.

As developers, we take an investor's approach and look to significantly upgrade a property and then rent it, as opposed to selling the units. The location for this property was ideal for our approach, as there are few luxury, loft-style rentals in the area. All seven units have two bedrooms and quality amenities throughout, including high-end stainless steel appliances and granite counter tops in the kitchens and bathrooms. The units all have high ceilings, numerous closets, including walk-ins, and exposed brick walls. Four of the seven units have outdoor space The two-bedroom layout opened the market to various groups that included people wanting a home/office, families and singles with roommates.

Within the first week, we rented two of the apartments at prices exceeding our initial projections and have rented the others quickly.

The first retail store leased at our projected price and we then leased the second at a higher rent.

While not every project goes as smoothly as this one, many of the principles we applied have proven over the years to be the right formula for a successful development.

FREDERICK J. RUDD PRESIDENT, RUDD REALTY