BFC Partners, Buffalo Black Billion, and community development organizations have secured $126 million in financing to acquire and comprehensively renovate Towne Gardens Apartments, a 360-unit affordable housing complex in Buffalo. According to Commercial Observer, published January 6, 2026, the development team is launching Phase 1 renovations in January 2026, marking a major turning point for one of Buffalo's most important affordable housing assets.
Towne Gardens Apartments has a complex history. The 360-unit community was constructed between 1968 and 1972 across 36 separate buildings along Clinton and William streets, just east of Downtown Buffalo. The complex provides Section 8 housing to approximately 360 low-income Buffalo families, making it a critical community resource.
However, years of deferred maintenance and changing ownership left the complex in significant disrepair. BFC Partners and St. John Baptist Church purchased Towne Gardens out of foreclosure from Fannie Mae in late 2023 for $22 million, recognizing both the challenges and the opportunity to revitalize this essential affordable housing asset.
The $126 million financing package demonstrates a sophisticated approach to affordable housing development, combining private banking resources with substantial state support:
The renovation package will address years of deferred maintenance and infrastructure challenges across the 36-building complex. BFC Partners and community partners plan to invest in:
Joseph Ferrara, principal at BFC Partners, stated the development team's commitment in January 2026: "We are eager to begin the revitalization of phase one this January, which will undoubtedly be a catalyst for further investment in the community."
The phased approach allows for careful project management while minimizing disruption to the 360 families currently residing at Towne Gardens. Phase 1 work will begin immediately while the team prepares subsequent phases of the comprehensive renovation.
Beyond the core Towne Gardens renovation, BFC Partners has secured additional capital for community expansion. In 2025, the development team purchased an adjacent one-story retail plaza for $1.35 million. This property will support development of an additional 310-unit apartment complex with 30,000 square feet of commercial and community space, further strengthening the economic vitality of the Buffalo East Side neighborhood.
The $126 million Towne Gardens renovation represents more than property improvement—it's a major public and private commitment to preserving affordable housing in a tight housing market. With 360 units of Section 8 housing serving low-income Buffalo families, the project directly impacts hundreds of households and ensures housing stability for vulnerable populations.
As David Mayseless, managing director at Wells Fargo noted: "Working alongside New York State and BFC Partners, we're proud to help extend the life of this important community asset and improve quality of life for families in Buffalo."
The financing structure demonstrates the power of coordinated public-private partnership. While Wells Fargo provided private sector debt financing, New York State contributed $81.5 million in tax credits and subsidies—representing a 65% public investment in affordable housing preservation. This model creates outcomes impossible through either sector alone.
The partnership includes critical community voices: Buffalo Black Billion, St. John Fruit Belt Community Development Corporation, and Community 1 join BFC Partners in stewardship of the project. These organizations bring neighborhood expertise, community relationships, and accountability to ensure Towne Gardens improvements benefit residents directly.
Joseph Ferrara's statement that Phase 1 "will undoubtedly be a catalyst for further investment in the community" reflects intentional strategy. Large-scale renovation of residential assets, combined with new commercial development on adjacent properties, typically attracts complementary investment in neighborhood corridors.
The Towne Gardens project aligns with broader Buffalo Black Billion initiative goals—supporting Black-led and Black-serving organizations in economic development, business creation, and wealth building. The inclusion of Buffalo Black Billion as a core partner ensures the renovation serves community economic empowerment objectives alongside housing preservation.
Phase 1 renovation activities are beginning immediately with comprehensive planning, contractor mobilization, and unit-by-unit interior renovation planning. The phased timeline allows for continuous occupancy by existing residents while work progresses building-by-building and system-by-system.
Concurrent with ongoing Towne Gardens renovation, BFC Partners will advance the adjacent 310-unit mixed-use development. This retail plaza redevelopment promises 30,000 square feet of commercial and community space alongside new residential units, creating a vibrant, mixed-use neighborhood district.
Beyond immediate renovation, the $126 million investment positions Towne Gardens and its surrounding neighborhood as anchors for sustained East Buffalo development. Improved housing conditions, new commercial spaces, and community-focused organizations create foundation for lasting neighborhood improvement.
Industry Insight: Westside Construction Group brings extensive experience managing large-scale multifamily renovation and new construction across Upstate New York. From Section 8 preservation projects to mixed-use development, WCG works with housing authorities, nonprofits, and private developers to deliver sustainable, community-focused housing solutions. Contact WCG: (585) 440-0304 or www.buildwcg.com
Related articles: Rochester $98M Affordable Housing Development Projects | Buffalo Playter Gardens 65-Unit Affordable Housing | Syracuse $100M East Adams Senior Housing Phase 2
NYC construction superintendents now limited to one primary job effective January 1, 2026. Transition deadline January 1, 2027. Competent person allowance ends same date.
Buffalo Central Terminal Phase II construction reaches halfway point on $33M restoration. Concourse reopening, plaza expansion, structural stabilization advance through 2027.
Angelo Ingrassia's $46.3M Colgate Rochester Divinity development creates 136 housing units. Historic campus transformation with COMIDA tax incentives. Public hearing Jan 15, board vote Jan 20.
.svg)
