Barrel Factory Apartments Complete in Kingston, Adding 100 Mixed-Income Homes

New York State has announced the completion of the Barrel Factory Apartments, a 100-unit mixed-use building at 110 Cornell Street in Midtown Kingston. Governor Kathy Hochul's office announced the completion on October 2, 2026, and put the project cost at $24 million Governor's Office. The building was developed by MHV Development and supported by a $4.78 million grant from the state's Mid-Hudson Momentum Fund Governor's Office.

The project is a useful case study for upstate developers and builders. It combines new construction with the reuse of older industrial buildings, mixes market-rate and income-restricted apartments, and relies on a state infrastructure and housing grant alongside conventional construction and permanent debt.

What Happened

The new building holds 100 apartments: 80 at market rate and 20 reserved for households earning up to 80 percent of area median income Governor's Office. It includes street-level retail space on Cornell Street Governor's Office.

The work also restored a former warehouse of about 21,000 square feet known as The Barn, which is being leased for professional and maker uses and to the retailer Free to Thrift Governor's Office. The state said the commercial space could support up to 20 jobs Governor's Office.

Hochul said, "New York's investment through the Mid-Hudson Momentum Fund helped advance this mixed-use development and expand the housing supply in the heart of Kingston" Governor's Office.

A Two-Phase Redevelopment

The apartments are the second phase of a larger effort at the former barrel factory site. The first phase restored an 18,000 square foot warehouse into 12 affordable apartments and 3,500 square feet of flexible commercial space, at a cost of $4.6 million Empire State Development. That phase opened in November 2024, on the same day ground was broken for the second phase Empire State Development. Empire State Development described the original structure as a 120-year-old warehouse that had been vacant for 15 years Empire State Development.

Together, the two phases provide 112 homes, 32 of them affordable Governor's Office. From the November 2024 groundbreaking to the October 2026 announcement, the second phase took a little under two years.

Christa Construction lists the second phase among its projects, describing a four-story, 100-unit building designed by Studio Architects for MHV Development Christa Construction.

How It Was Financed

• Mid-Hudson Momentum Fund: $4.78 million state grant for the second phase Governor's Office.
• Construction financing: $19.5 million from the Community Preservation Corporation Governor's Office.
• Permanent financing: $16.3 million through Freddie Mac Governor's Office.
• Phase one support: An $840,000 Restore New York Communities Initiative grant, plus historic preservation tax credits that produced about $1.4 million in equity Empire State Development.

The published cost figures differ. The completion announcement gives $24 million Governor's Office, while the 2024 groundbreaking release put the second phase at $26.2 million Empire State Development. Neither source explains the difference.

Implications for Owners, Developers, Contractors and Subs

• Developers: A project that was 80 percent market-rate still qualified for a state grant covering roughly a fifth of the stated cost. The Mid-Hudson Momentum Fund is regional, but the approach of setting aside 20 percent of units at 80 percent of area median income mirrors what other upstate programs reward.
• Contractors: Pairing a new four-story building with warehouse restoration on one site means two very different scopes, with existing conditions and historic fabric on one side and repetitive residential floors on the other. Sequencing and shared site logistics drive the schedule on jobs like this.
• Subs: Midsize mixed-use buildings in older upstate downtowns continue to be a steady source of framing, masonry restoration, MEP and finish work, often for regional developers who repeat the model.
• Municipalities and owners of vacant industrial buildings: The site moved from a long-vacant warehouse to 112 homes in two steps, using a small Restore New York grant to prove the first phase before the larger build.

What to Watch

• Lease-up of the 80 market-rate apartments and the ground floor retail on Cornell Street.
• Tenant fit out in The Barn and whether the job estimate is met.
• Future rounds of the Mid-Hudson Momentum Fund and similar regional housing and infrastructure grants.

Bottom Line

The Barrel Factory Apartments add 100 homes and restored commercial space in Midtown Kingston, completing a two-phase reuse of a former barrel factory that now totals 112 homes Governor's Office. The financing shows how a state grant under $5 million can help carry a largely market-rate, mixed-use project in a smaller upstate city.

Image credit: Office of Governor Kathy Hochul. Image from the source article.

Sources

• New York Governor's Office, Governor Hochul Announces Completion of Barrel Factory Apartments, Bringing 100 New Homes to Kingston: https://www.governor.ny.gov/news/governor-hochul-announces-completion-barrel-factory-apartments-bringing-100-new-homes-kingston
• Empire State Development, Groundbreaking of Mid-Hudson Momentum Barrel Factory Apartments: https://esd.ny.gov/esd-media-center/press-releases/esd-and-mhv-development-break-ground-mid-hudson-momentum-mixed-use-mixed-income-barrel-factory-apartments-kingston
• Christa Construction, Barrel Factory Lofts Phase II: https://christa.com/project/barrel-factory-lofts-phase-ii/