East Pointe Apartments Construction Update, 8/2018

6 08 2018

No one can say DGA Builders is wasting time. A visit on Friday showed three sets of CMU foundation walls have been assembled and mortared, each for a ten-unit townhouse string. A few crewmen kept an eye on a material placement truck, also known as a stone slinger, as it launched rocks into the footprint encased by the foundation walls. This may be a crushed stone base (hardfill) for a concrete slab pour, given the stacks of rebar with surface rust sitting nearby. A shallow foundation would work fine here because two-story buildings aren’t especially heavy as structures go, and it would be less expensive and time consuming than a deep foundation. Elsewhere around the site one sees PVC sanitation pipes (sea green), water pipes (blue), and pieces for utility junctions.

Meanwhile just a stone’s sling away on Nor Way, Forest City realty continues work on the six-unit string (hexplex?) of townhouses. Two are fully framed and roofed, two have had their first floor framed though not fully sheathed, and the other two are only partially framed on the first floor. As with all the townhouse strings, these will incorporated some unique design features while keeping the general unit layout the same. I know they’re not happy about the East Pointe townhomes, but it could be a good synergy – the price points ($1,400-$2,000/month fr East Pointe, $350k for the Heights of Lansing townhouses) are such that renters who may wish to stay in that neighborhood may look at the Heights townhomes as an option.

A website is now up and running for East Pointe. It’s mostly stock images and bland corporate-speak, but they do have floor plans and some new renders. Here’s the advertising pitch:

“This apartment community is located on 20 acres in Lansing, NY, which is part of the Ithaca, NY, market. This is new construction of 140 state-of-the-art apartments. There will be 36 one-bedroom units, 90 two-bedroom units, and 14 three-bedroom units. The project will include fourteen apartment buildings with 10 units in each building that will be walk-up garden style with private entrances and a community building. All units will have high end finishes and amenities, including stainless finish appliances, microwave, dishwasher, washer and dryer, ice maker, granite counter tops, wood cabinets, vinyl plank flooring and wall-to-wall carpeting, tile showers, high end plumbing fixtures and lighting fixtures. All apartments will include a patio or deck. The community building will include the leasing and maintenance office, Great Room and warming kitchen for gatherings, and a fitness center. The project also includes an outdoor pool with changing rooms and shower.”

I have no idea what a warming kitchen is, but my very Sicilian mother is pretty good at turning kitchens into warming spaces around the holidays. A photo of the community center is included below.

UPDATE: I’m just going to add this here since the timing was ever so slightly off- on Monday the 6th, the construction loan was filed with the county. M&T Bank is lending Park Grove (represented by an LLC) $22.6 million for construction of the East Pointe project.





East Pointe Apartments Construction Update, 6/2018

24 06 2018

If the name doesn’t sound familiar, that’s okay. For the past two years, the common reference to these was either “The Bomax Drive Apartments” or the “Park Grove Realty Apartments”, either of which was used interchangeably. The official name according to Park Grove Realty’s webpage is “East Pointe Apartments”. East of what, I dunno.

Park Grove Realty is a new company headed by a group of long-time developers and real estate professionals. Andrew Crossed and Andrew Bodewes cut their teeth at Conifer Realty, a regional affordable housing developer based out of Rochester (readers might be familiar with some of their local projects, including Linderman Creek, Cayuga Meadows, and Poet’s Landing). They knew their way around development and had familiarity with the area. Not only that, they were working with Tom LiVigne, who has been on the board of many local projects and recently retired as the president of real estate operations at Cornell.

While LiVigne was at Cornell in 2008, the university purchased a 19.46 acre parcel on Bomax Drive. The property was zoned for business and technology, which is intended for commercial office, warehousing or tech-focused industrial space, which is what Cornell originally had in mind. But, with the onset of the Great Recession, and a re-assessment of Cornell’s needs, nothing ever came forth for the property.

A little bit of speculating here, but because Conifer’s Cayuga Meadows had been floating around since the late 2000s, LiVigne would have been professionally familiar with Crossed and Bodewes. It seems likely that as LiVigne retired in early 2015, and Crossed and Bodewes launched their company a few months later, they might have approached him with the idea of an Ithaca project, knowing the market’s strong economics and housing deficit. LiVigne was familiar with Cornell’s excess holdings, and whatever discussions he had with Park Grove post-retirement led to the idea of a project on this property.

The project was first conceived and brought before the village of Lansing in July 2016. East Pointe is a 140-unit townhouse complex, fourteen strings of ten units, plus a community building, situated on a wooded vacant parcel on Bomax Drive. The intent was to explicitly avoid Collegetown and Downtown, and do a project geared towards the upper-middle class market segment, more specifically empty nesters and young professionals who may be moving in for work, but have yet to buy a house (this is exactly the same sub-market and words used by the developers of the 102-unit Cayuga Orchard project over in the town of Lansing, and even bears a passing resemblance). Arguably, a modest slice of graduate/professional students is possible as well.

To make the project possible, the zoning would have to be changed to high-density residential – the village planning board wanted a traffic study and wasn’t excited that there was no affordable housing here (the project team argued the asking price Cornell wanted made affordable housing infeasible), but was otherwise open to the idea of the zoning change; no one had developed a business and technology space since 2005, and residential was seen as a downzoning from what could have been done there, should Cornell have really pushed for a large office of research building. The neighboring developer, however, was not okay with the rezoning.

I don’t intend to rehash Forest City Realty and the Jonson family’s attempt to stop the project, but the argument was that it was a “spot rezoning” and that it was illegal. The Jonsons felt the units would decrease the desirability of their own project, the luxury for-sale townhomes in the Heights of Lansing. It became so impassioned that Lisa Bonniwell (Ivar and Janet Jonson’s daughter) ran herself and allies to try and take over the village Board of Trustees and mayorship last year in an effort to stop the proposal – they lost by a large margin. They also took the village to state court, lost, appealed, and lost again. The village estimates, with considerable distaste, that although they won, the court cases cost them close to $50,000.

It’s because of the lawsuit that the timeline gets a little muddled. The rezoning request was filed in September 2016, the public hearing in October, and the zoning change was made in November 2016 – to make it clear, that was the rezoning, not the project. The project wasn’t approved until November 2017, after the lawsuit was rejected and had gone to an appeals court. For a little while, Park Grove had a “continue at your own risk” for preparing final drawings and legal paperwork, given that the appeal was not declined by the state court until February 2nd 2018. The first real sign the project was moving forward came on March 16th of this year, when Cornell sold the land to Park Grove for $1.5 million, $300,000 more than what the university paid in August 2008.

Each string will have four units on the first floor, and six units on the second floor. Each unit has their own entrance, and the project is being described by the developer as “walk-up garden style“. The mix of units is 36 one-bedroom units, 90 two-bedroom units, and 14 three-bedroom units – since 36 and 90 don’t break down evenly by 14, I’d expect slightly difference unit mixes per building, and perhaps that will result in some slight design differences for things like window and door placement. However, they’ve only ever shown one apartment string in their official renders. The renders above are from early in the process (top), and the one they uploaded to the company website last week (bottom) – note the differences in the end garages and in the second floor/roof on the right side of the image. it may be a change in design, or it may be two different building designs they plan to utilize depending on unit layout. Have to wait and see on that one.

The one-bedrooms will be about 900 square feet and go for $1,400/month, according to an early interview with the Ithaca Times. The 1,300 SF two-bedroom units will go for $1,700/month, and the three-bedrooms, which will be about 1,400 SF, will for $1,900/month. The Lansing Star gives similar stats. Renters will get “high end finishes and amenities”, with possible amenities including  the community building with swimming pool, bocce ball court, walking trails, a community garden and a dog park.

I have not seen any building costs or local lending activity associated with the project, but if it’s in the ballpark of the nearby Village Solars (which is $2-$3 million per building), then it would not be unreasonable to expect something in the range of $30 million (of course, I am not the county tax assessor, so don’t take my word as gospel).

The architect, James Fahy Design Associates of Rochester, has a lot of experience with newer suburban developments, both single-family and multi-family. A google search (their website hasn’t been updated) shows similar gable-loving, shake siding and stone veneer embracing projects in the Buffalo, Rochester, Syracuse and Albany areas. Jess Sudol of Passero Associates is the engineering consultant.

Right now, the site is being cleared and graded, with subterranean utilities installs (water/sewer) and early foundation excavation work is underway. The first two apartment strings are expected to be ready by Spring 2019. DGA Builders of Pittsford (suburban Rochester), a division of Pennsylvania-based DGA Construction Group, appears to be the general contractor, and A.E.Y. Enterprises of Macedon (Wayne County) is the site work subcontractor.