Andrews Terrace
Overview
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$400 Million |
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Summary
In December, KeyBank Community Development Lending and Investment (CDLI), in partnership with the Urban Investment Group (UIG) within Goldman Sachs Asset Management, invested $135.6 million of 4% Federal Low-Income Housing Tax Credit (LIHTC) Equity and provided a $200 million construction loan for the planned renovation of Andrews Terrace in Rochester, New York.
Additionally, KeyBank Commercial Mortgage Group closed $73.1 million in Fannie Mae Multifamily tax-exempt bond collateral (M.TEB) and KeyBanc Capital Markets underwrote $163 million of tax-exempt bonds for this project. Conifer Realty, LLC (Conifer), a Rochester-based, nationally ranked, full-service real estate company specializing in the development, construction, management, and ownership of high-quality, affordable housing communities, is partnering with Community Preservation Partners (CPP), a mission-driven affordable housing preservation developer, on this project.
This iconic 526-apartment building complex on Rochester’s waterfront provides housing for low-income seniors (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.”
Scott Maxfield, a managing director in the Urban Investment Group within Goldman Sachs Asset Management had this to say about the deal: “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.
The capital investment will have a significant impact on the community and its residents because it preserves a much-needed affordable housing asset that sits within a historical nexus of discriminatory lending and disinvestment within downtown Rochester. This iconic apartment building complex on Rochester’s waterfront built in 1975 at 125 St. Paul St. consists of two 19- to 22-story elevator-served residential buildings containing 526 studio, one-, and two-bedroom apartments.
Preserving this unique, 557,602-square-foot development designed in the "brutalist" architectural style will complement Rochester's ROC the Riverway Program, a unified plan that includes dozens of transformational projects along the Genesee River to revitalize the area and use 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 $101 million, with a total project investment of approximately $335 million.
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 area median income (AMI) of 50% or less, with 30 apartments set at 60% or less of AMI. In addition, to the extensive renovations and in-unit improvements onsite, there is also an extensive resident-focused social services program. The supportive service plan provides two (2) full time service coordinators onsite who will be available to provide referrals to agencies such as the Low-Income Energy Assistance Program (LIHEAP) and other assistance programs to address food scarcity with food stamps and food banks. The coordinators also will plan and coordinate holiday events, implement support systems, and design activities that appeal to the residents.
“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.“
Ari Shachter, Director of Acquisitions and a project leader for Conifer, expressed his gratitude as well. "KeyBank and Goldman executed flawlessly on the financing," he said. "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, vanities, and wainscotting. Once completed, 5% of the community’s apartments will be brought into ADA compliance.
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.
