BUFFALO, N.Y. (WBEN)...... In a key, pre-construction move, Pennrose Corp. has officially taken title and ownership of the North Aud Block - setting the stage for work to begin on its now-controversial $200 million residential-anchored development.
Officially, on June 15, the Erie Canal Harbor Development Corp. shifting the title to North Aid Housing Development Fund Corp. - a Pennrose affiliate.
At $200 million, Pennrose's North Aud Block project is the largest private sector-backed development within the Canalside footprint.
The title switch is one of the pre-construction milestones that needed to be addressed before Pennrose can begin to break ground on the project that will see 251 apartments developed in a series of buildings along with some commercial space.
The project will fill in the last remaining vacant parcel of the former Memorial Auditorium footprint and will help the ECHDC fulfill a pledge to bring a 24/7 critical mass to Canalside.
The project, several years in the development pipeline, has been recently criticized and questioned by a handful of influential downtown leaders about Pennrose's plan to lease perhaps as many as 75% - or approximately 188 of the 251 apartments to those in the "affordable" demographic when original plans had a 60%-40% split favoring market rate apartments.
But supporters, including Gov. Kathy Hochul, said the project will bring more residents into Canalside's footprint and open downtown housing options across all demographic categories.
"We need people of all levels living in downtown," Hochul said. "I'm tired of failure down there."
Just to the south of the North Aud Block parcel, developer Nick Sinatra has started work on his Heritage Point apartment complex, which will be anchored by 64 units - most of which will be offered at market rates.
And, to the north, developer Douglas Jemal has 115 market rate apartments in the Seneca One Tower.
Construction on the North Aud Block will start this summer and take between 24 months and 30 months to complete.
Title switch prelude to $200 million construction project starting
Title switch prelude to $200 million construction project starting
