Nearly a year after purchasing the 360-unit Towne Gardens Apartments in Buffalo, N.Y. out of foreclosure, a joint venture between BFC Partners, St. John Fruit Belt CDC/Buffalo Black Billion and Community 1, LLC have closed on $126 million in financing to begin revitalization of the long neglected and mismanaged community.
Funding for the renovations came from New York State Homes and Community Renewal, Wells Fargo and Freddie Mac. Investments include $38.7 million in subsidies from HCR and a State Low-Income Housing Tax Credit allocation from HCR that will generate $15 million in equity along with allocations of state and federal historic tax credits.
The team acquired the project-based Section 8 apartment community at 440 Clinton St. in East Buffalo in March of last year. The partners purchased the 18-acre property out of foreclosure from Fannie Mae for $21.8 million, with a $20.6 million loan from The Housing Partnership, according to Yardi Matrix data. They made $2 million in emergency repairs but pledged to begin a longer rehabilitation this year.
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The property, which has 36 one-, two- and three-story buildings, was completed in 1972. The new owners said the property suffered from years of neglect, chronic mismanagement and unsafe living conditions. The current unit mix consists of one-,two- and three-bedroom units ranging in size from 660 to 1,107 square feet, with an average of 800 square feet. Rents in 2025 ranged from $819 to $1,275, with a mean of $1,128, according to Yardi Matrix data.
Scope of work outlined
The financing will be used to fully renovate all apartment interiors, bringing modern finishes, appliances and systems to the units. The owners will provide enhanced security and community safety upgrades, including new landscaping and lighting throughout the property. The developers also plan to repave sidewalks and parking lots.
Critical storm and sanitary infrastructure improvements will be completed to address longstanding issues with utility and building systems and to provide reliability and comfort for residents. Laundry rooms and bicycle storage will be installed in 14 of the buildings.
Additionally, three playgrounds, fitness stations and a walking track will be created for residents.
Mixed uses planned for Phase 2
BFC Partners, a Brooklyn, N.Y.,-based developer, stated last year that the rehabilitation work at Towne Gardens would be a catalyst for further investment in the community. The firm also acquired the adjacent Towne Gardens retail plaza in 2024 for $1.35 million and plans to build mixed-income housing and mixed-use retail in a second phase. A new shopping center and additional affordable housing would be built on that site.
The Buffalo News reported the second phase would include 310 apartments in a seven-story building at the corner of William Street and Jefferson Avenue. The building could also include 30,000 square feet of retail and community space, more than half of which could be used for a grocery store, pharmacy or medical office.
BFC Partners’ NYC projects
While BFC has 1,600 units in its Buffalo housing pipeline, the firm remains active in projects throughout New York City. Over the last three decades, BFC has developed or preserved upwards of 11,000 units throughout the Big Apple.
In June of 2025, BFC secured a $250 million construction loan for a 420-unit building at 1709 Surf Ave. in Coney Island. The project is the third and final phase of a larger affordable housing development in the Brooklyn, N.Y., neighborhood, and adds to the already completed 822 affordable units. The previous phases were finished in 2021 and 2024, and the final phase is slated for delivery by 2028.
BFC opened The Pearl, a $151 million, 270-unit affordable housing community in Staten Island, N.Y., in November 2024. It was the largest affordable housing project in the borough. Half of the units were set aside for formerly homeless seniors, earning no more than 30 percent of the area median income. The remaining apartments in the 12-story building were reserved for residents earning at or below 80 percent of AMI.
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