Revitalizing Andrews Terrace: Affordable Housing Renovation with KeyBank's Support
KeyBank Community Development Lending and Investment (CDLI), in collaboration with the Urban Investment Group (UIG) within Goldman Sachs Asset Management, has invested $135.6 million in 4% Federal Low-Income Housing Tax Credit (LIHTC) Equity. Additionally, they provided a $200 million construction loan for the planned revitalization of Andrews Terrace in Rochester, New York. KeyBank Commercial Mortgage Group also closed a $73.1 million Fannie Mae Tax-Exempt Bond (MTEB), and KeyBanc Capital Markets underwrote $163 million of tax-exempt bonds for the project.
Conifer Realty, LLC, a nationally ranked real estate company based in Rochester, 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 initiative.
Andrews Terrace, an iconic 526-apartment building complex on Rochester's waterfront, serves as housing for low-income seniors (62+) and disabled residents and their families.
Rob Likes, President of KeyBank’s CDLI team, expressed KeyBank's commitment to helping clients and communities thrive, particularly in supporting underserved populations. Likes stated, "We are deeply committed to partnering with Conifer Realty and Community Preservation Partners to renovate and provide safe and decent affordable housing for low-income seniors and disabled residents."
Scott Maxfield, Managing Director in the Urban Investment Group within Goldman Sachs Asset Management, shared his excitement about revitalizing Andrews Terrace and contributing to the supply of affordable housing in Downtown Rochester. Maxfield emphasized the investment's positive impact on residents, providing safe and affordable housing along with essential on-site services.
The capital investment aims to preserve a crucial affordable housing asset with historical significance, situated within the context of redlining and disinvestment in downtown Rochester. Andrews Terrace, built in 1975, consists of two 19- to 22-story elevator-served residential buildings containing 526 studio, one-, and two-bedroom apartments. The preservation of this distinctive 557,602 square-foot downtown development, designed in the "brutalist" architectural style, aligns with Rochester’s ROC the Riverway Program, contributing to the revitalization and leveraging public and private investment for critical community infrastructure, economic development, and job creation.
Facing capital repair and maintenance challenges beyond its operating budget in recent years, Andrews Terrace is set to undergo extensive renovations estimated at $101 million, with a total project investment of approximately $335 million.
The majority of Andrews Terrace residents benefit from rental payment assistance through an existing Section 8 Housing Assistance Payment (HAP) contract. Currently, 496 apartments are designated for residents earning an Average Medium Income (AMI) of 50% or less, with an additional 30 apartments set at 60% or less of AMI. Alongside extensive renovations and in-unit improvements, the property offers a comprehensive resident-focused social services program.
The supportive service plan includes two full-time on-site service coordinators who provide referrals to agencies such as LIHEAP for utility payment assistance and other programs addressing food scarcity, such as food stamps and food banks. Additionally, the coordinators plan and coordinate holiday events, implement support systems, and design activities tailored to residents' interests.
John Fraser, Vice President of CPP East, expressed gratitude for KeyBank's investment and commitment to creating high-quality, affordable housing communities. Fraser emphasized the significant need for affordable housing in Rochester and the excitement about preserving Andrews Terrace as an iconic affordable housing development.
Ari Shachter, Director of Acquisitions and project lead for Conifer, commended KeyBank and Goldman for flawlessly executing the financing. Shachter appreciated the depth and breadth of Key's financing capabilities, crucial for the project, and highlighted Andrews Terrace as a landmark and vital part of the community.
All apartments will undergo substantial kitchen upgrades, including new countertops, painting, new appliances, fixtures, and cabinets. Bathrooms will be refurbished with the installation of new fixtures, vanity, and wainscoting. ADA compliance will be achieved for 5% of the community's apartments upon completion.
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. Outdoor additions to the community will include a terrace community garden, grandparents' playground, seating and grilling area, and bocce ball courts. Indoor amenities will feature a fitness room, game room, reading nook, and two community rooms with serve-in kitchens. New mailboxes with parcel boxes will also be installed.
Upgrades will extend to elevators, electrical and plumbing systems. The building's signature cantilevered balconies and connecting outdoor breezeways will be fully restored and upgraded, bringing them back to their historical glory. Windows and select doors will be replaced, and the façade will undergo concrete and masonry repairs.
The debt and equity financing for the project were arranged by Eric Steinberg, Jonathan Wittkopf, Anna Belanger, Robbie Lynn, and Celia Smoot of KeyBank CDLI, with Sam Adams of KeyBanc Capital Markets underwriting the bonds.
Conifer Realty, LLC, a nationally ranked real estate company based in Rochester, 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 initiative.
Andrews Terrace, an iconic 526-apartment building complex on Rochester's waterfront, serves as housing for low-income seniors (62+) and disabled residents and their families.
Rob Likes, President of KeyBank’s CDLI team, expressed KeyBank's commitment to helping clients and communities thrive, particularly in supporting underserved populations. Likes stated, "We are deeply committed to partnering with Conifer Realty and Community Preservation Partners to renovate and provide safe and decent affordable housing for low-income seniors and disabled residents."
Scott Maxfield, Managing Director in the Urban Investment Group within Goldman Sachs Asset Management, shared his excitement about revitalizing Andrews Terrace and contributing to the supply of affordable housing in Downtown Rochester. Maxfield emphasized the investment's positive impact on residents, providing safe and affordable housing along with essential on-site services.
The capital investment aims to preserve a crucial affordable housing asset with historical significance, situated within the context of redlining and disinvestment in downtown Rochester. Andrews Terrace, built in 1975, consists of two 19- to 22-story elevator-served residential buildings containing 526 studio, one-, and two-bedroom apartments. The preservation of this distinctive 557,602 square-foot downtown development, designed in the "brutalist" architectural style, aligns with Rochester’s ROC the Riverway Program, contributing to the revitalization and leveraging public and private investment for critical community infrastructure, economic development, and job creation.
Facing capital repair and maintenance challenges beyond its operating budget in recent years, Andrews Terrace is set to undergo extensive renovations estimated at $101 million, with a total project investment of approximately $335 million.
The majority of Andrews Terrace residents benefit from rental payment assistance through an existing Section 8 Housing Assistance Payment (HAP) contract. Currently, 496 apartments are designated for residents earning an Average Medium Income (AMI) of 50% or less, with an additional 30 apartments set at 60% or less of AMI. Alongside extensive renovations and in-unit improvements, the property offers a comprehensive resident-focused social services program.
The supportive service plan includes two full-time on-site service coordinators who provide referrals to agencies such as LIHEAP for utility payment assistance and other programs addressing food scarcity, such as food stamps and food banks. Additionally, the coordinators plan and coordinate holiday events, implement support systems, and design activities tailored to residents' interests.
John Fraser, Vice President of CPP East, expressed gratitude for KeyBank's investment and commitment to creating high-quality, affordable housing communities. Fraser emphasized the significant need for affordable housing in Rochester and the excitement about preserving Andrews Terrace as an iconic affordable housing development.
Ari Shachter, Director of Acquisitions and project lead for Conifer, commended KeyBank and Goldman for flawlessly executing the financing. Shachter appreciated the depth and breadth of Key's financing capabilities, crucial for the project, and highlighted Andrews Terrace as a landmark and vital part of the community.
All apartments will undergo substantial kitchen upgrades, including new countertops, painting, new appliances, fixtures, and cabinets. Bathrooms will be refurbished with the installation of new fixtures, vanity, and wainscoting. ADA compliance will be achieved for 5% of the community's apartments upon completion.
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. Outdoor additions to the community will include a terrace community garden, grandparents' playground, seating and grilling area, and bocce ball courts. Indoor amenities will feature a fitness room, game room, reading nook, and two community rooms with serve-in kitchens. New mailboxes with parcel boxes will also be installed.
Upgrades will extend to elevators, electrical and plumbing systems. The building's signature cantilevered balconies and connecting outdoor breezeways will be fully restored and upgraded, bringing them back to their historical glory. Windows and select doors will be replaced, and the façade will undergo concrete and masonry repairs.
The debt and equity financing for the project were arranged by Eric Steinberg, Jonathan Wittkopf, Anna Belanger, Robbie Lynn, and Celia Smoot of KeyBank CDLI, with Sam Adams of KeyBanc Capital Markets underwriting the bonds.
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