ITHACA, N.Y. — West Hill’s Cayuga Garden Apartments have a new owner, as of last week.
The complex, formerly known as the Chestnut Hill Apartments and located at 139-157 Chestnut Steet, sold for $4.7 million to a New Jersey-based entity, according to a deed filed with the county clerk’s office last week. That would be a significant increase from the $3.18 million that the seller, an LLC associated with Victor-based High Peaks Capital, paid for the complex back in October 2019.
During its time of ownership, High Peaks had undertaken renovations that cost less than $900,000, according to principal Derek Carroll. Per online multifamily listings, renovations generally focused on new roofs and renovated common areas.
At the time of purchase, Carroll had remarked that the property was assessed at a higher price than sale because the units had elevated rates of delinquency (unpaid rent), a situation that became more complex during the COVID-19 pandemic and the accompanying eviction pause.
Online multifamily real estate listings state that the project rents could easily be increased $450-$750/month given Ithaca’s robust economic outlook and tight rental market. At the time of listing in mid-2023, every unit in the 60-unit complex was occupied.
“Currently operated as workforce housing in the supply constrained and highly attractive Ithaca market, this presents a prime opportunity to fully renovate interiors and increase avg. [average] rents up by over 60% to $1,600+ vs. ~$1,000 at present (2-beds north of $2,000),” wrote salesperson Jonathan Weinstein of Cushman & Wakefield.
The complex has been the site of some controversy in recent years, with the Ithaca Tenants Union protesting outside the complex in 2021 against perceived gentrification of the property, which has been one of a limited number in Ithaca to provide housing for lower-income tenants.
Rumors that the apartments were to be torn down and replaced with a $90 million project were unfounded. However, during their time of ownership, High Peaks did consider constructing additional apartment buildings on undeveloped portions of the Chestnut Street site. Those plans never progressed beyond the concept phase.
Similar to High Peaks’ investment, the new owner of Cayuga Garden Apartments plans renovations of their own. While the buyer was listed under a Delaware-based LLC, the construction loan filing contained the contact info of the owner-representative, Samuel Neiger of New Jersey. Neiger did not respond to requests for comment.
The construction loan states that Neiger, associate Mordechai Landau and their LLC have taken out a $1,135,001 loan to renovate the complex. The loan is being provided by Lima One Capital of South Carolina, a national-scale firm that specializes in multifamily rental construction funding. The extent of work is not described in any explicit detail, just as “value-add” work dealing with repairs, replacements and alterations.
Prior to High Peaks’ purchase of the complex in 2019, Rabco Realty (the Rabinor family) had owned the residences since 1977, four years after they were built.
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West Hill apartment complex sold to out-of-state buyer - The Ithaca Voice
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