Creating a ‘Gateway’ to affordable living on East Main in Rochester

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The redevelopment of East Main Street is about to continue with the transformation of the long-vacant Gateway Building into mixed-income housing with a side of commercial space.

Buffalo-based developer SAA|EVI closed on the purchase of the seven-story property at 150 East Main St. this week and intends to have construction crews on site ASAP.

The $72.3 million project will create 129 apartments for tenants earning between 30 percent and 80 percent of the Area Median Income (AMI). There also will be ground-floor commercial space facing the proposed pedestrian courtyard that will connect East Main and Division streets.

“The SAA|EVI’s Gateway Apartments project will bring new life and vitality back to the building and, with it, to the rest of this critical block of Main Street,” said Erik Frisch deputy director of neighborhood and business development for the city of Rochester.

This is SAA|EVI’s first foray into Rochester. The firm specializes in the development of affordable and mixed-income housing, and over the past 15 years has created approximately 5,500 housing units across eight states and the District of Columbia.

“We’re often taking on troubled assets that other developers haven’t been able to redevelop,” said Connor Kenney, regional head and partner at SAA|EVI.

While the firm is entering Rochester for the first time, Kenney is quite familiar with the city and with multifamily development.

Before joining SAA|EVI, he worked for PathStone and was involved several projects, including SkyView on the Ridge, which transformed a vacant Sears building into affordable senior housing.

“Rochester is near and dear to me,” Kenney said. “It’s pretty exciting to come back and take on this project. Hopefully this is the first of many.”

The Gateway Building sits in the middle of the block between St. Paul Street and North Clinton Avenue. It’s distinguishable mirrored-glass façade makes it a prominent – albeit blighted – East Main landmark.

The mirrors, however, will disappear and SWBR‘s architectural plans show a design that more closely resembles the building’s original look.

Gateway Apartments will be home to 24 studio units, 87 one-bedroom apartments and 18 two-bedroom units. The apartment homes will range in size from 875 square feet to around 1,800 square feet and the redeveloped building will fit nicely into the downtown cityscape.

“We make a point that differentiates us from others by creating a product that is indistinguishable from a market-rate product,” Kenney said.

They do so not just through architectural design but also in features and resident amenities. All units will have quartz countertops, stainless steel appliances, luxury vinyl tile flooring and ceramic tile in the bathrooms.

There also will be an indoor playground for tenants with children, podcast space and other community spaces such as co-work areas for tenants that work remotely.

The ground floor commercial space will total around 8,000 square feet, either for one tenant or as many as three, depending on interest. Kenney said they’re open to ideas for use of the space.

The project has been in the making for more than three years. SAA|EVI launched redevelopment ideas in May of 2022. Along the way, there have been surprises — which is to be expected, considering the building was built in 1895 — but Kenney said SWBR and general contractor Christa Construction have been perfect partners.

“The design teams at SWBR and Christa Construction have been the best to work with,” he said. “They have solved countless potential deal-killing problems, including structural integrity problems.”

SAA|EVI will use $40 million in 4-percent Low Income Housing Tax Credits secured through JPMorgan Chase and syndicated by Red Stone Equity. Empire State Development is providing $2 million in Restore NY funding, the city has provided $800,000 in HOME Funding. The balance will be financed with developer equity.

The Gateway redevelopment is part of a massive investment in the re-creation the 100/200 blocks of East Main. At the corner of East Main and North Clinton is Home Leasing’s $10 million Harper’s Corner project, transforming downtown’s most prominent eyesore into commercial and residential space.

Dutton Properties has already redeveloped the Glenny Building, a $10 million project that turned the deteriorating property at 190 East Main into apartments, and has embarked on a $12.3 million project to turn the Kresge Building at 186 East Main into a 28-room boutique hotel.

And the city has undertaken the $1.5 million creation of Main Street Commons, the plaza that will connect East Main with Division Street to the north.

SAA|EVI’s rehabilitation of the Gateway Building fits in perfectly.

“I know the state and the city are very focused on seeing development in that neighborhood,” Kenney said, “and we wanted to be part of maximum efforts to revitalize that portion of Main Street.”

Said Frisch: We look forward to seeing this project come to life and to continuing the march of revitalization further west down Main Street to the Four Corners.”

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