Wells Fargo, New York State Loan $126M to Acquire, Renovate Buffalo Housing Complex
Towne Gardens Apartments opened in 1968 but 360 units of Section 8 housing have fallen into disrepair
By Brian Pascus January 6, 2026 12:28 pm
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BFC Partners and several community groups in Buffalo, N.Y., have secured $126 million in new financing to acquire and renovate Towne Gardens Apartments, a 360-unit Section 8 apartment community just east of Downtown Buffalo, Commercial Observer can first report.
Wells Fargo provided the majority of the financing via Freddie Mac, while New York State’s Homes and Community Renewal (HCR) provided $42.8 million in tax credit equity and $38.7 million in additional subsidies.
BFC Partners is working with St. John Fruit Belt Community Development Corporation, nonprofit Buffalo Black Billion, and Community 1 to renovate the affordable housing complex, which opened as 36 separate buildings between 1968 and 1972 along Clinton and William streets.
Joseph Ferrara, principal at BFC Partners, emphasized in a statement that affordable housing complexes like Towne Gardens Apartments provide “stability, dignity, and opportunity” to local communities, and that families will benefit from the new redevelopment capital.
“We are eager to begin the revitalization of phase one this January, which will undoubtedly be a catalyst for further investment in the community,” he added.
BFC Partners and St. John Baptist Church purchased Towne Gardens out of foreclosure from Fannie Mae in late 2023 for $22 million, according to Buffalo-Toronto Public Media.
Last year, BFC Partners also purchased a one-story retail plaza adjacent to Towne Gardens for $1.35 million and plans to develop an apartment complex with 310 residential apartments and 30,000 square feet of commercial and community space, per Buffalo Rising.
BFC Partners and the local community groups plan to use the investment capital to provide residents with new interior renovations, storm infrastructure improvement, and security systems.
David Mayseless, managing director at Wells Fargo, said the influx of debt financing reflects his bank’s commitment to “preserving affordable and safe housing for the residents of Towne Gardens.”
“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,” he added.
Brian Pascus can be reached at bpascus@commercialobserver.com.
