HAVERHILL — Its name is regal — Olympia Square — but its image falls short.

It's a tough part of the city, both in atmosphere and appearance. The intersection of White and Winter streets is at the edge of the Acre neighborhood, known for continuing street crime, and housing that has improved over the years but still lags behind other parts of Haverhill.

The intersection was named Olympia Square in 2002 and gained a popular restaurant a short time later. But it still has vacant storefronts, including the corner spot that for decades housed the now-closed Bannon's Spa — a convenience store with a coffee counter.

During the last several years, as the property declined, the area became the scene of prostitution, drug usage and dealing, and a hangout for vagrants.

Enter a hometown boy and his business associates.

The Federated Companies, a Boston real estate development firm, has bought the Pentucket Building, which until about a year ago housed Bannon's Spa, for $1 million. Francis Bevilacqua, grandson of former longtime Haverhill state Rep. Francis Bevilacqua, is a principal in the firm and was in the square yesterday to discuss plans for the property.

Bevilacqua said his group plans extensive renovations and hopes to attract high-quality local and national retail stores.

Bevilacqua said no decisions have been made about who will rent space in the building.

"Once it's done, it's going to bring in a lot of people," he said.

The other principals in the firm are Jonathan Cox, also of Haverhill, and Jonathan Rausch. The Federated Companies has developed shopping centers and rental properties in New England, Bevilacqua said. The firm plans to build 104 apartments on Marston Street in Lawrence, he said.

Present tenants in the Olympia Square property include a barbershop that fronts on White Street and the CCF Church, with its front door on Winter Street.

Bevilacqua said he hopes renovations will start in a month, and he thinks the job can be done by the beginning of 2009, barring weather problems. He said he has hired a local architect, Ronald Albert, and that local firms will do the renovations.

The previous owner of the building, constructed in 1916, was New Pentucket Realty Trust, owned by Paul Errico of Somerville.

Mayor James Fiorentini, who announced the change of ownership yesterday, said, "We've wanted someone to buy this building for some time." He said he is grateful to Errico for selling the building to a developer who plans to revitalize the property.

Fiorentini predicted Winter Street will be the "site of the next renaissance in Haverhill" and called Bevilacqua's plan a "gateway project." He said there have been many complaints about the deteriorated condition of the building, which is just a few blocks north of the resurgent downtown, where housing groups are developing hundreds of apartments and condominiums.

Last month, Marlene Yeo, president of Somebody Cares New England, announced plans to rent storefronts at the Pentucket Building. Somebody Cares is a Christian organization that feeds the homeless, brings food to the elderly, raises money for foster children and needy families, and feeds the homeless on state and national holidays.

Bevilacqua said his plans for the building will probably not affect Yeo's efforts.

"If anything, it will enhance them," he said.

Yeo could not be reached for comment.

Ramiro Blaisdell, 34, has lived near Olympia Square all his life. He used to live on How Street and now resides on Summer Street.

"I think it would be awesome," he said of the Pentucket Building renovation plan.

"It would make the area more vibrant," said Blaisdell, who delivers for Tony's Pizza and Subs, 145 Winter St.

Hanna Elkhouri, who operates both Amanee's Fine Jewelry and Eddie's Urban Wear across the street from the Pentucket Building, also welcomed the change of ownership.

"This is a very busy street," said Elkhouri, who has run his business there for eight months. "The more businesses that are open, the more foot traffic."

He recommended that the city improve lighting along Winter Street, which is only a short distance from downtown.

"I wish them luck," he said.