Home Leasing, a family-owned developer in Rochester, intends to end its operations-- selling the vast majority of its portfolio to a Philadelphia-based firm.
The move would end a 20-year-run for the low-income housing firm, which is wrapping up development of Harper’s Corner on East Main Street in Rochester and in the midst of a Beechwood Family Apartments in the city’s northeast neighborhood.
Earlier this week, the County of Monroe Industrial Development Agency unanimously approved transferring tax abatements for two properties — Penfield Square in Penfield and Tailor Square in Rochester — to Contour Holdings 3 LLC, an affiliate of Pennrose Holdings.
Based in Philadelphia, Pennrose is a massive real estate firm managing over 14,000 rental units across 16 states and the District of Columbia.
The acquisition of Home Leasing was first reported by the Rochester Business Journal on Friday.
Megan Houppert is CEO of Home Leasing. She said the transition started about a year and a half ago.
“The intention is, in the long term, for Home Leasing to no longer be developing and managing assets,” Houppert said.
The transition is expected to transfer all employees of Home Leasing to Pennrose. A city spokesperson said Pennrose is expected to take over all management of Home Leasing projects, and all construction on its ongoing developments is expected to continue. Houppert echoed that sentiment, and said as the transition takes place, Home Leasing will continue all of its construction and management responsibilities.
The Home Leasing Corp. was founded in 1967 by Nelson and Norman Leehouts. In 2006, the company split into two entities. Broadstone Capital, led by Norman, would manage commercial properties, while Home Leasing, led by Nelson, would manage the firms' low-income housing projects. The business has been a family affair. Houppert, for example, is Nelson’s granddaughter.
“When I personally think about what Home Leasing set out to do, it was to create a family business that partners with communities to answer the housing questions that are really specific to each community we develop in all across New York,” Houppert said. “Nelson’s legacy is to build homes, and be the stewards of those homes.”
It has since developed about 3,500 apartments and 42 community developments in New York, Pennsylvania, and Maryland. Among its more well-known developments locally are Charlotte Square in the East End, Eastman Gardens on Main Street, and Flower City Apartments on Culver Road. The company also recently renovated the former Hickey Freeman building on North Clinton Avenue, adding apartments for seniors.
While Pennrose is purchasing most of the properties, some still seek a buyer. Charlotte Square, in which Home Leasing is a minority owner, is among them. Houppert said the company is still actively looking for buyers, with more deals expected to be finalized soon.
