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January 31, 2019Starbuck Island Project Surges Ahead with M&T Bank Financing
An abandoned, formerly industrial section of a Hudson River island will undergo a massive transformation that will attract new residents and retail tenants. M&T Bank announced it has approved financing for Starbuck Island, a large-scale development project in Green Island, N.Y.
M&T will provide Peter Luizzi and Luizzi Companies with the financing necessary to launch construction at the 11-acre site, which sits across the river from Troy and was once used as an oil tank storage farm. Luizzi plans to complete a full environmental remediation to create a vibrant waterfront community with market-rate luxury apartments, senior apartments, unique residential amenities and retail development.
“Starbuck Island will be one of the most transformative privately developed projects undertaken in the Capital Region in years,” said Beth Beshaw, M&T Bank market president for Albany and the Capital Region. “An abandoned brownfield on a Hudson River island will soon become a waterfront destination thanks to the vision and commitment of Peter Luizzi and his team. We’re excited to provide the capital to help make it happen.”
“For many years, this waterfront land was all but forgotten. We recognized its potential and developed plans for Starbuck Island, a project that derives its name from the Starbuck Foundry, which wrote the early chapters of the island’s industrial history,” said Peter Luizzi, owner of Luizzi Companies and the project’s developer. “M&T Bank understood our vision and believed in our team. The financing they’re providing, as well as their team’s commitment to helping us succeed, will accelerate this project toward completion.”
M&T Bank will provide construction lending for the project, which will proceed in two phases. The first phase will include 68 market-rate luxury apartments and 40 senior apartments.
M&T has also approved bridge financing to assist with environmental remediation costs. Last year, the state Department of Environmental Conservation admitted the site into the Brownfield Cleanup Program, opening up access to brownfield tax credits, which support developers who successfully remediate and redevelop contaminated lands. Bridge financing helps developers cover costs in anticipation of the forthcoming tax credits.
“For generations, towns and cities across Upstate New York relied on waterways and riverfronts for industrial uses,” Beshaw added. “This project is an outstanding example of the imaginative redevelopment efforts that are converting industrial or unused lands into places that bring people together and build communities at the water’s edge.”
Once complete, the two-phase project will include 268 market-rate luxury apartment units, 40 senior apartments, a 26,444-square foot mixed-use building and a 3,500-square foot retail parcel.
Starbuck Island, which will offer clear views of the Hudson River to its south and downtown Troy to the east, will also feature several outdoor seating areas, a performance atrium, a marina and boat docks, waterfront tennis courts, a grand pool and specialized rooms intended to enhance residents’ living experience.
Initial site work is underway with demolition of existing structures and remedial soil work nearing completion. Construction on the project’s first phase is expected to take about 24 months to complete. The total cost for both phases of the project is estimated at $64 million with a construction timeline of 48 months.
BBL Construction Services will serve as general contractor for the apartment buildings, and Peter Luizzi and Brothers Contracting will lead the construction of the mixed-use building during phase two of the development.
