Transforming a Former Factory

Newburgh, New York

This project is breathing new life into a former factory that sat vacant in downtown Newburgh for more than 20 years. The completed mixed-use development will bring nine residential units, including live-work studios for artists, and a co-working space to the Newburgh community. All apartments are affordable to households earning at or below 80 percent of the area median income (AMI).

Constructed in 1895, the building was once the headquarters of Staples & Hanford Wireworks, a manufacturer of wire springs used in furniture and carriage cushions. The developers are preserving elements of the original building, including intricate tin ceiling panels and original oak floors, to preserve its historic character while revitalizing the property and the neighborhood.

Like many Hudson Valley communities, Newburgh has struggled to recover from postindustrial economic decline and high vacancy rates historically dampened interest from potential investors. With ongoing commitment from the City of Newburgh to revive its housing stock, and a growing number of successful revitalization projects, the City is now experiencing a gradual renewal.

Sisha Ortuzar, who is coordinating the project, moved from New York City to Newburgh four years ago, aiming to combine his background in hospitality with an interest in real estate and the opportunity to nurture ongoing redevelopment in downtown Newburgh.

BOM Newburgh, the joint venture developing this project, includes Mr. Ortuzar, AE Baxter, a Hudson Valley developer, and Mapos, the New York City-based architecture firm that is designing the project’s renovation plans.

The partners saw that revitalizing this property, which sits at the end of the Liberty Street Corridor, was an opportunity to help lead the expansion of the hub of redevelopment occurring in Newburgh’s East End Historic District.

“While there is a need for residential units in Newburgh, we also know that in order to keep that up and continue to fill those residential units, we need to do things that bring jobs and keep people here,” said Ortuzar.

A 5,800 square foot (sf) space on the ground floor of the building will be home to BEAHIVE Newburgh, a co-working operator with space for entrepreneurs, creatives and start-up businesses to build community and grow together.

With the co-working space, the team aims to attract creative business owners who might be considering relocating to Newburgh.

Although original plans for the project included up to 3,200 sf for a food service business, the developers saw the challenges that the hospitality industry was facing due to COVID-19 and were able to pivot. Instead, they have reserved a smaller space of 700 sf in the building for a future café, which will include access to outdoor space.

CPC provided a $2 million construction loan and 30-year permanent loan through its partnership with the New York State Common Retirement Fund (CRF).

The New York State Homes and Community Renewal Participation Loan Program, created to support the development of small, affordable, multifamily building across the state, provided $450,000 in additional financing to make the project feasible.

The project furthers an ongoing commitment to revitalizing Newburgh; CPC has invested $21 million to create or preserve more than 340 units of quality housing in Newburgh over the past two decades. In FY 20, CPC convened City of Newburgh officials and members of Newburgh’s growing community of small building developers for a roundtable discussion to help foster continued revitalization.