CPC and Syracuse partner to assist downtown renaissance

Thanks to dedicated public-private partnerships, downtown Syracuse has grown dramatically over the past four years. It is rapidly becoming the trendy neighborhood of choice for many people with diverse backgrounds, such as students, young professionals, and empty nesters. To date, The Community Preservation Corp. (CPC), a non-profit mortgage lender, has invested over $28 million in downtown Syracuse, providing a total of 230 residential units. It is estimated that more than $180 million is being invested downtown. Restoring vacant and underutilized buildings into much-needed Downtown housing, office and retail space has been a priority of mayor Matthew Driscoll and CPC. CPC has been a pioneer in financing multifamily projects in Downtown Syracuse neighborhoods such as Franklin Sq. In 2003, CPC formed a public-private partnership with the city of Syracuse and a well-known local developer to transform a former factory into loft market-rate rental apartments - a first for Franklin Sq. The vision to turn the factory into housing was considered risky because five years ago, it was not considered "hip" to live in Franklin Sq. The city, state, CPC and developer believed that this innovative project would spur growth and help build Downtown neighborhoods. The vision prevailed, and the former factory, constructed in 1906, was rehabilitated into 90 loft-style apartments and over 30,000 s/f of commercial space. CPC provided an $8 million construction and $11 million permanent loan. Fannie Mae provided $1.9 million in historic tax credit equity and $1.5 million for remediation was provided through congressman James Walsh. Thanks to this revolutionary effort, more attractive and affordable developments started appearing downtown, creating a desire for residential living. Today, downtown is booming with 1,000 units. For several years, CPC worked to turn the "Spaghetti Warehouse Building," a century-old former factory, in Franklin Sq., into loft apartments. In 2001, CPC financed and completed the first phase of rehab with a prior developer, who then sold the building to Lakefront Lofts, LLC, which is owned by an attorney from a renowned N.Y.C. law firm. For the second phase, CPC financed $5.05 million to acquire and rehab the building into 50 loft-style apartments. The mixed-use building is located at 689 North Clinton St. and houses the well-known Spaghetti Warehouse restaurant on the lower floor. When complete, the apartments will rent for about $1,000 per month for one bedroom and $1,200 per month for two bedrooms. The building features commercial space on the ground and first floors. SONYMA has committed to insuring the permanent loan. CPC utilized a public-private partnership just north of the chic Armory Sq. neighborhood of Downtown. Lofts on Willow, a former warehouse, is a newly renovated historic building containing commercial space and 49 new loft-style apartments. CPC provided a $3.9 million loan and the Syracuse Economic Development Corp. (SEDCO) financed $400,000. Two-bedroom units rent for $650 - $900 per month, affordable to families with annual incomes starting at $40,000. CPC partnered with Willow St. Lofts, LLC, which is made up of four prominent local real estate professionals, who have invested throughout downtown Syracuse. Adjacent to downtown, CPC has also sparked revitalization efforts in Little Italy. A recent milestone project is the Walier Lofts, located at 755 North Salina St. The building is a former chocolate factory, which was turned into 14 new loft apartments and two commercial spaces. Two-bedroom apartments rent for $1,200, affordable to families with annual incomes of $48,000. CPC supplied $1.55 million in construction and permanent loans for the project. The project also received a $300,000 grant from the Syracuse Neighborhood Initiative (SNI), $150,000 financing from SEDCO and a $30,000 matching grant from the Northeast Hawley Development Association. Congressman Walsh secured the $300,000 SNI grant. Two experienced real estate investors, who own properties in Syracuse and Denver, Col., developed the project. To date, CPC has financed $2.865 million in Little Italy, creating 30 units. CPC is thrilled to work with developers interested in downtown Syracuse's revitalization and our partners from the city and the state. Mayor Driscoll is to be commended for his vision to turn underused buildings into eye-catching storefronts, quality apartments, and restaurants, creating thriving and vibrant communities. We look forward to working on future public-private projects and continuing to help meet the increasing demand for housing downtown and throughout Syracuse. Nick Petragnani is regional director at the Community Preservation Corp., Syracuse, N.Y.