Moving south may be less appealing to the 55 and over crowd if Michael and Denise Barnett have anything to say about it. While Hudson River Valley Properties may be an unfamiliar name right now, its principals don”™t expect its anonymity to be long-lived.
The Barnetts bought and rehabbed several multifamily buildings in Westchester County before moving from Yonkers to Hopewell Junction five years ago. They quickly discovered there weren”™t many apartments catering to the 55-and-over crowd in the Hudson Valley, save for subsidized-senior housing, which already has a lengthy waiting list.
“We did a lot of research,” Michael Barnett said. “There is a higher concentration of Baby Boomers here with disposable incomes who want to downsize but have nowhere to go.” The couple went to Florida to learn how builders tailored the southern real estate market to boomers, and then brought the concept north. Hudson River Valley Properties was born.
Its first foray into the senior market, Vineyard Commons, is expected to be the harbinger of good things to come. So positive about the success of the upscale 185-unit apartment complex in Highland, Hudson River Valley Properties has put up substantial capital and bought land for other projects planned in the region.
Originally built as condos, Vineyard Commons switched gears and became rentals, lowering the age restriction from 62 to 55 and over. “The real estate market is gone,” Michael Barnett said. “While we may return to the condo concept at some point, that market is five to seven years away, if not longer. It didn”™t make sense for us to spend so much on this project and have it sit empty.”
Apartments from one bedroom (1,290 square feet) to three bedrooms (1,700 square feet) with rents ranging from $2,600 to $3,700 a month include electricity, heat, air conditioning, hot water and snow removal.
Amenities are plentiful ”“ from a public onsite restaurant, the Bistro at Vineyard Commons that delivers lunches and dinners or caters private events for tenants ”“ to a full-service clubhouse complete with an enclosed, heated pool that can be opened when the weather warms up ”“ Barnett said tenants at Vineyard Commons will want for nothing. Except, perhaps, something to do with their time if they”™ve already retired.
Tenants enter through a keyless locked entry and greeted by 24/7 concierge service in every building. A bus that can be scheduled in advance is available for a ride into town or trips to local sites or down to New York”™s theater district. Power outages? “They don”™t happen,” Barnett said. “We have our own generators that automatically switch over.”
Four three-story buildings, a clubhouse and a separate maintenance building make up the 22-acre housing complex; Barnett estimated total cost for both land and construction at $46.5 million.
William Burson, the complex”™s executive director, said 30 percent of the apartments have been rented and another 20 percent have move-in dates. He expects to be fully rented out by mid-2011.
Barnett bought the land and had all the approvals in hand before he took the next step ”“ going through the Department of Housing and Urban Renewal”™s 221D4 program for his construction loan.
“HUD wants to see shovel-ready property with approvals in place and building plans that meet the program”™s guidelines. As long as you do it right, it”™s smooth sailing. We are talking about huge amounts of mortgage money HUD is guaranteeing, so it is not overlooking anything, especially in this economy ”¦ and if you borrow money and do your job right, they will lend to you again. Unlike a conventional mortgage, once you are approved and you get a closing date, it”™s a done deal.”
Chase is Hudson River Valley Properties”™ exclusive banker for the HUD-backed mortgages. Barnett said the HUD program he works with has been around for years, “but I don”™t know of anyone using it around here.”
Hudson Properties has already laid the foundation for its next project ”“ Highland Square, two miles down the road from Vineyard Commons. Consisting of 220 assisted living units, with an undetermined number set aside for an Alzheimer”™s wing, “We already have a ”˜comfort”™ letter from the New York State Department of Health,” said Barnett, who is working with a major hospital to partner with Highland Square. “We expect to close on the property in February and start construction immediately.” He expects Highland Square to be completed and ready for occupancy by summer 2012.
Hudson River Valley Properties expects to pump $300 million into the region”™s construction economy within the next five years, he said. “We will create at least 500 to 700 construction jobs as we build out Highland Square and the other projects we are working on. Vineyard Commons has created nearly 40 part- and full-time permanent jobs.”
It has already broken ground on a market-rate family oriented apartment complex in the town of Newburgh and one for Hyde Park, as well a 55-and over/assisted living/Alzheimer”™s complex for Wappingers Falls.
