The Mayo Group, a development company with a strong track record of restoring historic commercial structures in the city's downtown business district, has embarked on its latest venture - transforming the dilapidated Keith Building into an upscale address.

Timothy Arel, director of operations for the Mayo Group, said the Keith Building, built in 1890, represents the company's most recent foray into Lynn.

"It's a great city long overlooked, and that's what makes it attractive," he said.

According to Arel, construction crews have been gutting the ground floor of the four-story red brick structure for several weeks and that work is nearly completed.

"Now we'll be moving to the upper floors," he said, noting that the construction plans for the 50-56 Central Square address call for primarily two-bedroom apartments.

"It'll be commercial space at street level and upscale apartments above," said Arel, whose company has been taking advantage of a recent change in the city's zoning code that allows for the construction of residential units in the downtown without associated parking.

"We're hoping to get this project on line, realistically, within the next five or six months."

The Mayo Group, owned by John McGrail, has also purchased and rehabilitated other downtown buildings, such as the former LeVar's nightclub at the corner of Union and Washington streets. LeVar's, 441-443 Union St., was converted to commercial space and the ground floor is leased to Labor Ready, a temporary employment service.

The company is also working at a steady pace along Munroe Street, where the Pevear Building is undergoing extensive renovations and will soonbe home to commercial enterprises along the street with apartments above.

"We're working on the second and third floors of the Pevear right now," said Arel, dumpsters and debris chutes at the site giving credence to his words.

Additionally, the company is moving forward on its plans to gut and rebuild the façade and interior of the Klemm's Building, 25-31 Central St., in Central Square, once a popular soda fountain and restaurant, but long since vacant and fallen into disrepair. The Klemm's Building will offer street level retail and commercial office space on the second floor.

The Mayo Group also owns 7 Central Square at the corner of Central and Union streets, often identified by one of its groundfloor tenants, The Meeeting Place coffee, pastries and sandwich shop.

The investment in Lynn by McGrail and his Mayo Group comprises a significant portion of the money that community development officials cite when discussing parts of the city where positive change is evident.