Buffalo, NY (WBEN) As input is being sought and encouraged on what to do about the future of the Marine Drive Apartments, there is an issue of whether the city can have affordable housing while at the same time capitalize on the waterfront property.
Real estate experts WBEN surveyed say a mix of business and affordable housing can indeed work.
Jim Knight of MJ Peterson Real Estate says an appropriate mix of housing and business is possible, saying, "It just depends on the layout, what you plan to do the size of the units, there's a bunch of questions there." He notes the goal is to try to allow for market rate, real estate, blended with assisted assisted living real estate all through the region and country.
Knight says the one thing you don't want to do is cause a displacement of the existing tenants and cause a problem there. "These people do need a place to live," says Knight. "They're used to that environment, they're used to the area which they're renting now. And it would be a shame a few, it tried to push them elsewhere that that would be totally unfounded."
Peter Hunt of Hunt Real Estate says a large subsidy may be necessary for this combination to work. "It's just too expensive to build anything today to bring in a sub market rate effectively in the affordable category," explains Hunt. He says if there were no subsidy, you're probably going to need about 50% of the retail value of what the space would be on the open market in the form of a subsidy to bring it in anywhere near the affordable range. "That land is just too valuable," adds Hunt. "It's waterfront in a major city, in the United States on a freshwater port. It's a spectacular setting. And as you may know, there's been proposal after proposal over the years to do something with that site. And hopefully, this is the one that'll work."
Hunt notes the mix must be healthy, otherwise, it will make no sense for for anybody to invest in that property, particularly the government. "If you live down there, you have to get in your car to go just about everywhere to get most anything. There are very few conveniences in that location. So if they could figure out the right mix on that site, if it was a private developer, or some combination of the government and and a private developer. In my mind, it's essential that there be that there be conveniences that make living there, not difficult," explains Hunt. He says that includes grocery and dining.
The BMHA is taking ideas from the public on how to revise the property. There are plans to tear down the seven towers and replace the property with a mix of housing and private development.
