SALEM — Hampered by a struggling real estate market, the developers of the Old Salem Jail property now plan to market most of the units as rental apartments, not condos.

New Boston Ventures, the developer chosen about two years ago to convert the abandoned historic jail into condominiums, a restaurant and a jail exhibit, has made changes to the project and will present them to the Salem Redevelopment Authority on Wednesday night.

The developer plans to add seven housing units, expanding the project from 29 to 36 total units.

Originally billed as an all-condo project, the housing will now consist mostly of rental apartments. Twenty-two units will be leased as apartments for five years, then be converted to condos. The other 14 units will be sold as condos at the start of construction.

"It has everything to do with the current real estate condition," said David Goldman of New Boston Ventures. "It's a way of making the project a reality."

Maintaining the units as rental apartments for at least five years allows New Boston to receive historic tax credits that make the project financially feasible, given the sagging real estate market, Goldman said.

"The tax credits are significant enough that it makes the project viable in this economy," Goldman said.

The tax credits are available only for rental housing, not condos.

The granite jail dates to 1813; it closed in 1991 and has been vacant ever since.

New Boston still plans a restaurant for the first floor of the development, a key selling point when it competed for the right to redevelop the old jail three years ago. Although the initial plan for a French bistro fell through, Goldman said a new restaurant is on the horizon.

"We do have someone on, but I'm not at liberty to talk about it yet," he said.

Assuming the amended project clears the necessary local hurdles, New Boston hopes to break ground as soon as the tax credits are approved, possibly in the next two or three months.

"We're ready to go," Goldman said. "We want to make this project happen. Quite honestly, we're very deeply invested in it right now, and we're very anxious to get started."

Barring any opposition from neighbors, Salem Redevelopment Authority Chairman Michael Brennan plans to give the project his vote of confidence.

"If there are no major oppositions, let's get this eyesore gleaming again," Brennan said. "Whatever it takes to get it back in use on the tax roll and get people downtown to spend their money, I'm open to listening. They are known as great developers. They have the best architect for restoration in the country. It's not them, it's the economy right now."

The 22 apartments would sit inside the jail building and the old jail keeper's house for five years before being sold as condos.

The new plans also add a wing to The Alexander, a new building to be erected, that would allow five additional housing units. Two more units would be added by restructuring the internal layout of the jail building.

Current parking plans should accommodate the additional seven housing units, Goldman said.

New Boston Ventures will present the new plans to the Salem Redevelopment Authority on Wednesday at 6 p.m. in the third-floor conference room at 120 Washington St.

"I'm just excited that in today's market, we were able to make this project a reality," Goldman said.

Staff writer Chris Cassidy can be reached at 978-338-2526 or by e-mail at ccassidy@salemnews.com.