By GUY C. DENECHAUD

While the current recession hasn’t gone unnoticed in Hanover, NH, positive signs indicate the long-term view is optimistic. Planning and development in residential and commercial districts is moving ahead, although at a somewhat slower pace during the last 12 months than in recent years.

As of mid-year, the number of building permits for new construction and home improvement projects issued so far in 2009 was almost exactly on pace with the same point in 2008, at an annual rate of about 300, said Jonathan Edwards, Hanover’s planning and zoning director.

Bob Haynes, principal broker for R.E. Haynes Co., Inc., in Hanover, agreed Hanover has remained reasonably busy in spite of the economic downturn. “This is fortunate, and most businesspeople I deal with understand how lucky we are, even though the general mood is cautious for now,” said Haynes.

“While this is frustrating for those in sales, it isn’t all bad. The more prudent market that has returned is still creating many opportunities.”

Hanover’s population has been stable during the last few years after growth of about 30 percent in the segment of the population not related directly to the activities of Dartmouth College.

Most of the single-family residential lots in town are already developed; the undeveloped ones are rare and valuable. A highly desirable address, most homes in Hanover tend to be pricey – the median price currently is $558,000 – due to the community’s historic and cultural amenities, its public schools and Dartmouth College.

About one-third of the approximately 12,000 who call Hanover home are students at Dartmouth College or one of the related graduate schools. Dartmouth has long been involved in providing housing to meet its considerable needs, including the proposed 273-unit Rivercrest residential development on Lyme Road. Rivercrest would provide apartments and single-family residences. The project has faced a slight delay, but work is expected to begin next spring.

On the southeastern edge of town just off of Route 120, the Gile Hill condominium development has been proceeding at a steady pace over the last 18 months. As of late May, 39 of the 61 affordable rental housing units were occupied, and 13 of the 15 market-rate rental units were also occupied. Sales have closed on two of the four affordable condos, priced from $160,000 to $180,000; the other two are under contract. Of the 12 market-rate condos at Gile Hill, priced at $276,000 to $394,000, 10 were already sold or under contract.

As of 2000, there were 1,859 dwelling units in the “in-town” area, and 973 in rural Hanover. Of the dwelling units built since 2000, about 84 percent, or 250, have been built in what is called the in-town area.

Statistics on Hanover’s recent real estate activity from Facts and Trends, obtained by Buff McLaughry of Lang McLaughry Spera, show houses on the market went from 50 in June 2008 to 60 in June 2009, an increase of 20 percent. On the other hand, 10 homes sold in Hanover in June of 2009, the same number sold in June 2008. Five more sales were pending during June.

The average selling price was just above $610,000, about a 3.7-percent increase over the June 2008 average of $588,000. The median price was $558,000, up from $484,000 a year earlier. Selling prices were about 96 percent to 97 percent of the listing prices. The average number of days spent on the market was 198 however, dramatically up from 88 one year ago.

Housing prices in Hanover seem to have held up better than most, and there is growing evidence the market has already passed its bottom. “The first quarter was very slow, but April through June we saw a lot more positive action in the market,” said Ned Redpath, owner of Coldwell-Banker Redpath & Company Real Estate in Hanover.

“There is not a lot of new inventory coming onto the market at this time, and with interest rates remaining attractive, buyer interest is strong,” he said. “The $250,000 to $450,000 portion of the market is strong, aided somewhat at the lower end by first-time buyer bonuses, but the middle range of $500,000 to about $800,000 is still tough.

“Above $1 million, we are still selling these high-end properties, but there were double the number for sale in June compared with one year ago, and they are often requiring substantial reductions to move,” Redpath added.

Downtown

Hanover has a bustling downtown with restaurants, retail establishments and offices. It’s within a few blocks of the Dartmouth College campus and the Hanover Inn. The need for renovation and construction has been apparent for several years, and plans for such improvements began to take shape in 2004 and 2005.

Substantial construction has been completed during the last two years. More is in progress this summer, with other work to begin soon. On the South Block adjacent to Main Street, construction has been focused on the renovation and reconstruction of a cluster of under-utilized properties on South Main and East South Streets. Construction has resulted in two-, three-, and four-story buildings with parking underneath.

A mixed-use building completed last year at 72 South Main Street has about 38,000 square feet. Commercial space on the main floor is occupied by C. Beston Company and The Mountain Goat.

A few smaller buildings – some restored, some new – line South Street around the corner from Main Street. This group of mixed-use buildings contains about 19,000 square feet of fresh commercial space and 15 upstairs residential apartments. Another construction project will replace a cluster of smaller, older buildings with a new hotel a block away.

Plans for the Hotel Hanover, a new four-story 69-room lodging establishment with underground parking, were announced in April. It is slated for development by the Maine Course Hospitality Group and has been approved by town officials. Since the current office occupants must plan for relocation, the developers are remaining flexible about scheduling a fall groundbreaking, but hope to have the hotel ready to open in fall 2010.

Sean Riley, chief operating officer for the group, said the decision to select a Hanover location was an easy one. It will feature a small restaurant and lounge, fitness room, business center and valet parking.

“We are really excited about coming to Hanover. It is such a beautiful town, and it will be our pleasure to fit in and become a part of the community in the way that we have with our other New England locations,” Riley said. Maine Course Hospitality Group had 13 locations in mid-summer, including one that opened in early July in Rockport, MA and another that opened in Gilford, NH in late spring. It has four more in the process of development, including the hotel in Hanover.

Mike Woodard of Woodard & Associates, who also specializes in commercial real estate in Hanover, said the need for some Hanover businesses to find new quarters in town because of the hotel couldn’t have come at a better time.

“These businesses, added to a few startups opening in town, shows that while the commercial market is soft, it is still alive here, and there are always restaurateurs looking for space in a college town,” said Woodard.

In an example of what Edwards called “the construction domino effect,” renovations and some reconfiguration of the building at 4 Currier Place are underway and scheduled for completion in late fall. This building is slated to be the temporary home of the visual arts center at Dartmouth College. A new center has been proposed on the site of the existing Clement Hall. Preparation for this large project has already begun with the start of the construction of the Spalding Loading Dock and the demolition of Brewster Hall.

Currently under construction, the new Class of 1978 Life Sciences Center at Dartmouth is the largest project the college has undertaken. Groundbreaking for the four-story, 174,000-square-foot building took place last fall; it is expected to be ready for occupancy in September 2011. Bond Brothers Construction Company of Waltham, MA is construction manager for the $93 million project. It will accommodate 30 labs with support spaces; 30 faculty offices; three conference rooms with lounges; a 200-seat, theater-style classroom; and other offices and class spaces.