The project launched in 2019 in response to a scenario “where there was an incredible amount of demand for call centers and (other) types of space,” ABCD’s Steve McKnight said Thursday in a phone interview.

Then came the COVID-19 shutdowns and the resulting trend toward remote work, which continues, leading to a demand for smaller office spaces — and little enthusiasm for the 10,000- to 20,000-square-foot areas that were hot three years ago, according to McKnight.

“The timing, honestly, couldn’t have been worse,” McKnight said of the project, which was the subject of a discussion at a City Council meeting.

Like other owners of commercial real estate, the Mill owners have been trying to “adjust to the new market dynamics,” according to McKnight.

The Mill near the Graystone Grande Palazzo is looking for business tenants. Owners of the four-story, 100,000-square-foot building have been trying to “adjust to the new market dynamics,” ABCD Corp. CEO Steve McKnight said. Mirror photo by Patrick Waksmunski

“That is part of the vision,” he said.

Fortunately, the group has the flexibility to build out the inside of the space to suit potential tenants, he said.

There has been interest, according to McKnight.

“(But) as of right now, there have not been any deals concluded,” he said.

The Mill property — which comprises three lots — is assessed at $350,000, according to information provided to council by City Manager Omar Strohm.

The owners pay $5,482 in property taxes: $1,795 to the city, $2,252 to the Altoona Area School District and $1,434 to Blair County, according to Strohm.

Total millage is 15.6609.

The owners received a $4 million grant and a $6 million low-interest loan for the project from the state’s Business in Our Sites program.

Payback on the loan begins in late 2024, according to Strohm.

The city contributed to the project by making site improvements in the public right of way and waiving fees — for a total value of about $210,000, according to a developer’s agreement.

The four-story, 100,000-square-foot former factory is technically a condominium, so there is an opportunity for prospective occupants to purchase units, John Radionoff, president of Silk Mill Properties, the ownership group, said in February.

The structure could end up with some units rented and some owned by other parties, Radionoff said then.

The partnership may turn the third and fourth floors — or just the fourth — into residential units, he said, noting the space could accommodate 13 one- or two-bedroom units per floor.

Mirror Staff Writer William Kibler is at 814-949-7038.