CPC and REO Holdings Carthage close on $10.8 million construction financing for rehab of Tichner and Jacobi Building

Rochester, NY The Community Preservation Corp. (CPC) closed a $10.8 million in construction financing with REO Holdings Carthage LLC for the gut renovation of the historic Tichner and Jacobi building located on the eastern bank of the Genesee River in downtown. The mixed-use project will create 41 new rental units and two new commercial spaces on the first floor as well as surface-level parking. Eight of the rental units will be affordable for households earning at or below 60% of area median income.

“We are thrilled to be part of bringing a prominent, historically significant building back to life in downtown Rochester,” CPC vice president and mortgage officer Miriam Zinter said. “Investing in a community’s rejuvenation is core to our mission at CPC. It’s been wonderful working with Tony Cilino and we look forward to continuing our partnership together. I want to thank Tony, the city of Rochester, and all the other stakeholders for their continued commitment to addressing the housing needs of our city.”

“REO Holdings Carthage LLC is delighted to have partnered with The Community Preservation Corp. on this important project in Rochester,” said Tony Cilino, owner of REO Holdings Carthage. “Our collaboration has been seamless and productive, and we greatly value CPC’s commitment to community development. We are very happy with our ongoing partnership and look forward to future opportunities to work together.”

Located at 143-153 Saint Paul St., the property is a six-story, brick, iron-faced, mixed-use building, originally constructed in 1884 for Tichner and Jacobi Tailors for their clothing manufacturing business and later purchased in 1934 by Henry Siebert Sons Inc. While the structure has lain vacant for a decade, the restoration of this “Flat Iron” style building will return it to the community as a hub of activity that will continue the revitalization of downtown.

SOS General Contractors LLC is an experienced development firm based in Rochester that focuses on the redevelopment of the city’s historic buildings.

The company has developed and owns properties totaling more than 140 residential units and five commercial spaces and has partnered on projects totaling an additional 130 units and eight commercial spaces. CPC and Center City Place LLC previously partnered on 131-163 State St., the gut rehabilitation of a mixed-use project consisting of 41 rental apartments and 8 commercial spaces.

The total development cost for the project is $16 million. In addition to $10.8 million in construction financing, CPC also anticipates committing permanent financing in the amount of $7.1 million at conversion. Other financing sources include federal historic tax credit equity, state historic tax credit equity, and Restore NY funding from Empire State Development. The project will benefit from a PILOT through the City of Rochester’s Conversion Urban Exemption (CUE) program which requires 20% of a project’s units to be affordable to households earning at or below 60% of area median income.