January 18, 2017
Preservation Development Partners
PARTNERSʼ CAPITAL GAIN
Preservation Development Partners, a joint venture of developers K & R Preservation led by Francine Kellman and Brian Raddock, and BFC Partners, announced the acquisition and $23 million rehabilitation of four affordable senior living apartment complexes in New York State’s Capital District.
The Albany Properties comprise Summit Towers, a 183 unit complex located at 720 Albany Street in Schenectady; Thurlow Terrace, a 137 unit building located on 2 Thurlow Avenue in Albany; Cayuga Plaza Apartments, a 127 unit complex located on 100 Cayuga Plaza, Cohoes; and Hudson Shores Plaza, a 137 unit complex located at 1545 Broadway in Watervliet.
Taken together, there are 583 one bedroom units and one studio apartment. All four complexes currently receive federal Section 8 subsidy through HAP contracts, which will be renewed for the next 20 years. All units will be set-aside for tenants earning no more than 60 percent of Area Median Income.
Francine Kellman, co-principal of New York City-based Preservation Development Partners, said, “With a limited supply of senior affordable housing in the area, and very high demand for senior housing in general, this transaction will preserve affordable housing and provide a long-term benefit to the community.”
The four properties will also benefit from the long-term continuation of Payments in Lieu of Taxes (PILOTs), offered through their respective municipalities.
Brian Raddock, co-principal of Preservation Development Partners, said, “The continuation of these PILOT programs will enable us to provide not only the affordable housing necessary for seniors in the region, but housing with amenities and services that go beyond the basics. It also ensures that these senior housing projects are not put in jeopardy due to unpredictable property tax increases.”
Preservation Development Partners has a growing portfolio of housing units and the firm plans to acquire additional properties in the Capital Region.