Pennrose Properties Breaks Ground on $225 Million North Aud Block Mixed-Use Development at Buffalo's Canalside

Pennrose Properties Properties has broken ground on the $225 million North Aud Block, a 340,000-square-foot mixed-income, mixed-use development at 130 Main Street in Buffalo's Canalside waterfront district. The project, supported by Empire State Development and New York State Homes and Community Renewal, will transform the last remaining vacant parcel of the former Buffalo Memorial Auditorium site into 251 apartments, 18,000 square feet of commercial space and a 20,000-square-foot public plaza.

Governor Kathy Hochul announced the construction start, calling the project part of the state's broader effort to convert underutilized land into housing and activate Buffalo's historic waterfront corridor.

Project Program and Affordability Structure

North Aud Block will deliver 251 apartments across a mix of studios, one-, two- and three-bedroom floor plans. Of those units, 187 — roughly 75 percent of the total — will be designated affordable, targeting households earning up to 80 percent of the Area Median Income. The remaining units will be offered at market rate.

The development includes accessibility provisions throughout: 13 units are designed to accommodate residents with mobility disabilities and six units are designed for residents with sensory disabilities, with all apartments built to accessible and adaptable standards.

The 18,000-square-foot ground-floor commercial component and 137 parking spaces round out the program. A 20,000-square-foot public plaza along the canal will feature seating, landscaping and wind barriers, connecting the development to the surrounding Canalside neighborhood and KeyBank Center, home to the Buffalo Sabres and Buffalo Bandits.

"North Aud will serve a broad range of incomes, creating a vibrant community that serves Buffalo's workforce — teachers, nurses, first responders, young professionals — alongside market-rate residents," said Dylan Salmons, Pennrose's president of acquisitions. "We are proud to contribute to Governor Hochul's ambitious Housing Plan, ensuring New York is affordable and livable for all."

Capital Stack: Tax Credits, Subsidies and Economic Development Grants

The project's $225 million total development cost is supported by a heavily layered public capital stack. New York State Homes and Community Renewal is providing $65 million in direct subsidy, along with Federal Low-Income Housing Tax Credits expected to generate more than $30 million in equity and State Low-Income Housing Tax Credits expected to generate more than $35 million in equity.

Empire State Development is contributing $12 million through the NY-RUSH program, $10 million from the NY Works Economic Development Fund and $2.5 million from the Regional Council Capital Fund Program. The site is enrolled in the New York State Department of Environmental Conservation's Brownfield Cleanup Program and, upon completion, is expected to qualify for approximately $20 million in brownfield tax credits administered by the New York State Department of Taxation and Finance.

"Today's groundbreaking at the North Aud Block is a testament to the power of strategic investment to maximize public benefits," said Hope Knight, president, CEO and commissioner of Empire State Development. "This mixed-use development will not only drive foot traffic to Canalside, but it will also inject needed, diverse housing options directly into downtown Buffalo."

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said the development "will help revitalize the Buffalo Canalside neighborhood and celebrate the Aud's history while also providing housing for individuals and families of all incomes — from first responders, to nurses, to childcare workers, to bus drivers and more."

Site History and Design

The Erie Canal Harbor Development Corporation, a subsidiary of Empire State Development, previously owned the North Aud Block site. The Buffalo Memorial Auditorium, which closed in 1996, was demolished by the state in 2009. North Aud Block occupies approximately 1.85 to 2 acres — the last vacant parcel within the former auditorium footprint — and is described as the largest private sector-backed development within the Canalside footprint.

The project's design, by Marvel, references the site's history and the area's original 19th-century street grid. Facades will incorporate exposed brick, terracotta and metal paneling, while the ground floor will use stone materials consistent with nearby historic downtown buildings. The building placement is intended to create the canal-facing public plaza and to visually and physically connect the development to the broader Canalside network.

North Aud Block follows the November 2025 opening of The Chandlery, a 14,000-square-foot, four-story visitor center and retail building on the same former auditorium parcel. That opening also included the debut of Destination, a public art installation commemorating the Erie Canal bicentennial. North Aud Block is part of the state's comprehensive plan to redevelop the entire former auditorium parcel.

Sustainability and Building Systems

The development will be all-electric, incorporating heat pumps, energy recovery ventilation, ENERGY STAR appliances, water-conserving plumbing and electric vehicle charging infrastructure. The all-electric approach aligns with New York State's broader decarbonization mandates for new residential construction.

State Housing Context

North Aud Block is part of Governor Hochul's $25 billion, five-year Housing Plan, which targets the creation or preservation of 100,000 affordable homes statewide. Under that initiative, New York State Homes and Community Renewal has created or preserved more than 11,600 homes in Erie County, including more than 8,300 in the city of Buffalo. The enacted fiscal year 2027 state budget includes $250 million in capital funding to accelerate affordable housing construction, and more than 81,000 affordable homes have been created or preserved statewide to date under the plan.

The administration's "Let Them Build" agenda, which includes changes to the State Environmental Quality Review Act intended to reduce permitting delays, is designed to accelerate projects on underutilized and brownfield sites — a category North Aud Block fits directly.

Erie Canal Harbor Development Corporation Chairperson Joan Kesner said the groundbreaking represents the culmination of more than 15 years of planning and community input. "ECHDC has been dedicated to creating a vibrant, mixed-use neighborhood that seamlessly bridges Buffalo's historic 19th-century grid with modern housing and amenities," Kesner said.

Pennrose Properties is also active elsewhere in Buffalo, with the Commodore Perry Homes redevelopment in the First Ward representing a separate, roughly $243 million investment that will deliver 405 affordable homes across 27 all-electric buildings on approximately 19 acres, using HUD's Rental Assistance Demonstration program to convert public housing units to project-based rental assistance.