KeyBank Community Development Lending and Investment Provides $400 million in Financing for the $101 Million Renovation of Affordable Seniors Housing in Rochester, N.Y.
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The renovation of Andrews Terrace, with a total investment of approximately $335 million, is a significant urban development project that can influence local economic dynamics. The involvement of major financial institutions like KeyBank and Goldman Sachs in providing loans and investments demonstrates the project's credibility and potential positive impact on the community. The revitalization aligns with the broader ROC the Riverway Program, indicating a strategic interest in urban renewal and the enhancement of community infrastructure.
From an economic standpoint, such large-scale investments can lead to increased local employment during the construction phase and potentially boost the area's economic activity. The focus on affordable housing preservation is also critical, as it addresses a pressing social need which, in turn, can contribute to the stability and growth of the local economy. The commitment to maintaining affordability through the Section 8 Housing Assistance Payment contract ensures long-term social benefits and can be a model for similar projects in other cities.
The financial structuring of the Andrews Terrace renovation, involving tax-exempt bonds, LIHTC Equity and a substantial construction loan, reflects a complex investment strategy aimed at balancing risk and social impact. The participation of KeyBank and Goldman Sachs suggests a strong confidence in the project's financial viability and the potential for a stable return on investment, particularly through the Federal Low-Income Housing Tax Credit (LIHTC) program, which offers tax incentives for developers to create affordable housing.
Investors and stakeholders should note the long-term nature of such investments, with potential implications for the financial performance of the involved institutions. The preservation of affordable housing can also have a stabilizing effect on the community, which might indirectly benefit local businesses and, by extension, regional banks and investors with interests in the area.
The preservation and renovation of Andrews Terrace is a textbook example of urban regeneration that aims to address historical issues of redlining and disinvestment. The project's focus on not only improving physical infrastructure but also providing supportive services, such as LIHEAP and food assistance programs, reflects a holistic approach to community development. This multifaceted strategy can serve as a blueprint for similar initiatives seeking to revitalize urban areas while maintaining their historical and architectural significance, in this case, the brutalist style of the building complex.
Urban renewal projects of this scale often act as catalysts for further development and investment in the surrounding areas. The long-term implications for the real estate market in downtown Rochester could include increased property values and attractiveness for future investments, potentially altering the socioeconomic landscape of the region.
Andrews Terrace, a 526-apartment building complex on Rochester's waterfront provides housing for low-income senior (62+) and disabled residents
NORTHAMPTON, MA / ACCESSWIRE / January 22, 2024 / KeyBank Community Development Lending and Investment (CDLI) in partnership with the Urban Investment Group (UIG) within Goldman Sachs Asset Management, invested
This iconic 526-apartment building complex on Rochester's waterfront provides housing for low-income senior (62+) and disabled residents and their families.
"KeyBank has had a steadfast commitment helping the clients and communities we serve thrive," said Rob Likes, President of KeyBank's CDLI team. "We are deeply committed to helping underserved populations and are proud to partner with Conifer Realty and Community Preservation Partners to renovate, safe and decent affordable housing for low-income seniors and disabled residents."
"We are excited to partner with Conifer Realty and Community Preservation Partners to revitalize Andrews Terrace, which provides a critical supply of affordable housing to Downtown Rochester. Our investment will help existing and new residents access safe, affordable housing and critical on-site services. We look forward to the lasting impact on the community of this next chapter in Andrews Terrace's nearly 50-year history," said Scott Maxfield, a Managing Director in the Urban Investment Group within Goldman Sachs Asset Management.
The capital investment will have significant impact on the community and its residents as it preserves a much-needed affordable housing asset that sits within historical nexus of redlining and disinvestment within downtown Rochester . This iconic 526-apartment building complex on Rochester's waterfront built in 1975, and located at 125 St. Paul Street, Andrews Terrace consists of two 19- to 22-story elevator-served residential buildings containing 526 studio, one-, and two-bedroom apartments. Preservation of this unique 557,602 square-foot downtown development, designed in the "brutalist" architectural style, will complement Rochester's ROC the Riverway Program, a unified plan which includes dozens of transformational projects along the Genesee River to revitalize and leverage public and private investment that support critical community infrastructure and spur economic development and job creation. In recent years, the development has faced capital repair and maintenance challenges beyond what the operating budget could cover. In response to this, Andrews Terrace will receive extensive renovations estimated at
Most of the residents benefit from rental payment assistance under an existing Section 8 Housing Assistance Payment (HAP) contract, Andrews Terrace currently has 496 of its apartments reserved for residents earning an Average Medium Income (AMI) of
"We are grateful for KeyBank's investment and commitment to creating high-quality, affordable housing communities, "said Vice President of CPP East, John Fraser. "Like many communities we serve across the nation, there is a significant need for affordable housing in Rochester, so we're excited to preserve this iconic affordable housing development for years to come. "
"KeyBank and Goldman executed flawlessly on the financing," said Ari Shachter, Director of Acquisitions, and project lead for Conifer. "We appreciate the depth and breadth of Key's financing capabilities which were needed for the project. Andrews Terrace is a landmark and an important part of the community."
All apartments will receive considerable kitchen upgrades including new countertops, painting, new appliances, fixtures, and cabinets. Bathrooms will also be refurbished with the installation of new fixtures, vanity, and wainscotting. Once completed,
Common areas, including the lobby, community room, management office, maintenance shop, and parking garage, will be renovated with drywall repairs, painting, new flooring, and HVAC upgrades, as needed.
There will also be several new outdoor additions to the community including a community garden on the property's terrace, grandparents' playground, a seating and grilling area, and bocce ball courts. Indoor amenities will include a fitness room, game room, reading nook, and two community rooms with serve-in kitchens. New mailboxes with parcel boxes will also be installed.
Additionally, elevators and electrical and plumbing systems will be upgraded. The building's signature cantilevered balconies and connecting outdoor breezeways will be fully restored and upgraded with new finish coating, bringing them back to their historical glory. Windows and select doors will be replaced, and the façade will receive concrete and masonry repairs.
Eric Steinberg, Jonathan Wittkopf, Anna Belanger, Robbie Lynn, and Celia Smoot of KeyBank CDLI arranged the debt and equity financing for the project. Sam Adams of KeyBanc Capital Markets underwrote the bonds.
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