Arbor Housing and Development
Meadowbrook Apartments, Corning, NY
$2,750,000 Interim Multifamily
Purpose: Rental Acquisition
Built in the 1950s, the Meadowbrook Apartments in Corning, N.Y., have fallen into a state of neglect. According to Jeff Eaton, president and CEO of Arbor Housing and Development (AHD), there have been few upgrades since the property was built. “The units are undersized, outdated and obsolete including the original bathrooms, kitchens, and features that are not energy efficient,” he said. AHD saw the need and value in acquiring and upgrading the property. “Many of the residents receive rental subsidies. They stay here because their choices are very limited. Our goal is to provide housing that allows residents and the community to flourish,” said Eaton.
Thanks to its expertise in these types of transactions, Community Housing Capital (CHC) was able to evaluate, underwrite and close the Meadowbrook Apartments interim acquisition loan in only 43 days. AHD had multiple proposed, but not yet committed, development strategies for repositioning and preserving this critical but dilapidated 100-unit rental project, a scenario that CHC immediately understood. “Turnaround time was crucial because Arbor would have lost the opportunity to purchase the property without a lender that could respond quickly,” said Eaton. “While the previous owner preferred to sell the property to us and provided a discount contingent on a very tight settlement date, if we had not been able to acquire financing, affordable units would have been lost and people would have lost their homes.”
“We were competing for the property against a combination of market-rate developers who would have priced current residents out of the units after improvements and other for-profit buyers who would maintain the property as housing of last resort. Either way, the residents and the communities would lose a valuable housing resource,” Eaton explained.
AHD will redevelop Meadowbrook Apartments using both state and federal development subsidies to fully renovate the existing units. They will enlarge the units to meet current code, which will reduce the current number of apartments from 100 to 80. They will also build 30 additional units. When completed, the community will have 100 quality affordable rental housing units for low-wage earners, single parents, seniors on fixed incomes and others. Current residents are excited about the improvements, and many are excited by the prospect of continuing to call the new and improved Meadowbrook home.
Meadowbrook Apartments is a classic example of how, working together, community development organizations and their financing partners can transform last-resort housing to housing of choice. The renovated development will be a boon to the surrounding community, which is a mix of renters and homeowners. “Bringing in this caliber of development will really lift it up and spur private-sector development,” said Eaton.