New York Construction Report staff writer
A $126 million rehabilitation of the 360-unit Towne Gardens Apartments is moving forward following the property’s acquisition by a partnership led by BFC Partners, marking one of the largest affordable housing reinvestments on Buffalo’s East Side.
The Section 8 apartment complex was acquired in March 2025 by BFC Partners in partnership with St. John Fruit Belt CDC/Buffalo Black Billion and Community 1 LLC. New ownership has now closed on a $126 million financing package to overhaul the long-neglected property, where years of absentee ownership and deferred maintenance left buildings in poor condition.
Renovation work is set to begin immediately. The project is financed through New York State Homes and Community Renewal, Wells Fargo and Freddie Mac, and includes $38.7 million in state subsidy, state Low-Income Housing Tax Credits expected to generate $15 million in equity, and state and federal historic tax credits.
The scope of work includes full interior renovations of all 360 apartments, with new finishes, appliances and building systems. Infrastructure upgrades will address longstanding storm and sanitary issues across the site, while security improvements are planned to enhance safety for residents.
Site work will include three new playgrounds, fitness stations and a walking track, along with new landscaping, lighting, repaved parking lots and sidewalks. Laundry rooms and bicycle storage will be added to 14 buildings.
“For far too long, the residents of Towne Gardens have been forced to live with unsafe conditions caused by years of neglect,” said New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas. “This $126 million investment marks a decisive turning point by restoring quality, safety and dignity to 360 homes.”
BFC Partners said construction on the first phase is expected to begin in January. “Affordable housing is not just about shelter — it’s about stability, dignity and opportunity,” said Joseph Ferrara, principal at BFC Partners. “We are eager to begin the revitalization of Phase 1, which will be a catalyst for further investment in the community.”
Community leaders described the project as part of a broader reinvestment in East Buffalo. Michael Chapman, president and CEO of Buffalo Black Billion and St. John Fruit Belt CDC, said the Towne Gardens and adjacent St. John Fruit Belt developments together represent nearly $800 million in investment on the East Side.
Wells Fargo Managing Director David Mayseless said the bank’s participation reflects a commitment to preserving affordable housing and extending the life of the property.
BFC Partners previously acquired the adjacent Towne Gardens retail plaza for $1.35 million, setting the stage for a future Phase 2 that would add mixed-use retail and additional affordable housing. The firm currently has about 1,600 housing units in various stages of development in the Buffalo market, including completed, under-construction and planned projects.
