Conifer, CPP to Start $335M Affordable Rehabilitation Project

The partners acquired the property for $94.7 million.

A joint venture between Conifer Realty and Community Preservation Partners will soon begin the rehabilitation of Andrews Terrace, a 526-unit affordable housing community in Rochester, N.Y. Estimated to cost $101 million, renovations are slated for completion within 32 months; the entire project was valued at $335 million.

Financing sources include:

  • $135.6 million in 4 percent Federal LIHTC Equity from a partnership of KeyBank Community Development and Goldman Sachs Asset Management’s Urban Investment Group
  • $200 million construction loan from the same source
  • $73.1 million Fannie MTEB from KeyBank Commercial Mortgage Group
  • $163 million in tax-exempt bonds underwritten by KeyBanc Capital Markets
  • $37.2 million in federal and state historic tax credit equity from Chase Community Equity

The partners acquired the 557,602-square-foot property in December for $94.7 million from PathStone, Monroe County records show. The deal involved the 20-year renewal of the HUD Section 8 contract and new 4 percent LIHTC from the New York State Division of Housing and Community Renewal, as well as federal historic tax credits from the National Park Service, tax exempt bonds from COMIDA and historic tax credits from the New York State Historic Preservation Office.

Completed in 1975, Andrew Terrace comprises two towers of 19 and 22 stories, respectively, which incorporate studio, one- and two-bedroom floorplans ranging from 470 to 951 square feet. Amenities include a business center, a community room and laundry facilities.

Of the total, 496 units cater to residents earning 50 percent or less of the area median income, while 30 are reserved for individuals making up to 60 percent of the AMI. Additionally, a large part of the apartments cater to seniors aged 62 and over.

Extensive upgrades

Renovations will include extensive interior upgrades with 5 percent of units being brought to ADA compliance. Developers will also improve common areas such as the lobby, community room and parking garage and will install new amenities including a community garden, playground, grilling area and bocce ball courts. Indoor facilities will feature a fitness room and game room. Other upgrades involve improvements to the façade, elevators and plumbing and HVAC systems.

Located at 125 St. Paul St., in an Opportunity Zone, the property is within central Rochester, close to various dining and entertainment options. The community is also within walking distance of the Rochester train station and some 7 miles from the Frederick Douglass Greater Rochester International Airport.

CPP, a subsidiary of WNC & Associates, has acquired, developed and rehabilitated more than 15,000 affordable housing units since its inception. The firm recently acquired a 204-unit property in Pittsburgh with plans to invest some $47 million in improvements.

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