National developer returns to refurbish Keeler Park Apartments

A national firm committed to refurbishing and re-creating affordable housing communities is returning to Rochester to embark on another project, this one with a total price tag of $121 million.

Community Preservation Partners (CPP) will team with Conifer Realty LLC to rehabilitate Keeler Park Apartments, the twin towers that sit near Route 104 just off Hudson Avenue.

CPP is in the process of buying the property from Conifer for $66 million and will use up to $70 million in tax-exempt bonds and 4-percent Low Income Housing Tax Credits through the New York State Housing Finance Agency to move construction forward.

An application also has been made with the U.S. Department of Housing and Urban Development to extend the housing assistance voucher program. Residents will continue to pay no more than 30 percent of their gross income, so when renovation is complete, rent increases would only come when income increases, according to John Fraser, director of development at Community Preservation Partners.

The County of Monroe Industrial Development Agency (COMIDA) approved sales tax, property tax and mortgage recording tax exemptions at Tuesday’s monthly meeting.

“This is a great opportunity to create prominent, beautiful buildings,” said Seth Gellis, senior vice president of CPP East.

This will be CPP’s second foray into the Rochester market. The company joined forces with Rochester’s Cornerstone Group in 2019 to transform in-disrepair Cedarwood Apartments into Winton Gardens.

The 206 units within the twin 11-story towers on East Main Street underwent an overhaul, as did common areas inside and out.

The firm plans to do the same with the 526 units within Keeler Park, which was built in 1974 and is comprised of two 16-story towers.

“The buildings need to go through a renovation,” Gellis said. “They have been well-maintained, but they still only have a limited useful life.

“And we don’t do the lipstick renovation. We like to make meaningful change. You saw that at Winton Gardens and you will see that here.”

CPP was created in 2004 by WNC & Associates, a national investor in affordable housing and tax credit syndication. Originally focused on affordable and senior housing in California, the firm now has a national reach with offices on the West and East coasts.

Since their initial partnership on Winton Gardens, CPP and Rochester’s Cornerstone Group have complete rehabilitation of Lawrence Avenue Apartments in Potsdam and plan to begin refurbishing a 138-unit high rise in downtown Erie, Pa., early in 2022.

“They have a very consistent model,” said Roger Brandt, president of Rochester’s Cornerstone Group. “They take on a project and say, ‘How do we fix this thing?'”

They do it with as little inconvenience to residents as possible, Brandt said.

“In all of our discussions, they always ask, ‘How is this going to impact the residents?'” Brandt said. “I’m really happy about that. There’s a lot of money in this industry but it’s not all about the money to them. That’s one reason we get along; we share the same value statement and mission.”

Fraser told the COMIDA board on Tuesday that the residents would displaced from their apartments for only for a few days and only during daytime working hours while upgrades take place.

Keeler Park units will undergo upgrades to kitchens, bathrooms, flooring and lighting, as well as HVAC systems, elevators and other building elements. Balconies also will be brought up to code, Fraser said.

When the project is finished, CPP will be the majority owner and Conifer will continue to provide building management.

CPP has worked with Conifer’s parent company, Belveron Partners of San Francisco, on previous projects so this isn’t a totally new partnership.

“Conifer was looking to sell and it was something we were interested in,” Gellis said.

The sale price of the property will be $66 million, and the project has a total cost of $121,419,758, according to documents filed with COMIDA.

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