Gov. Kathy Hochul has announced more than $18.6 million for 10 downtown Albany projects, marking the first project-level awards from the state’s $200 million downtown investment under the Championing Albany’s Potential initiative.
The awards are expected to help create nearly 300 housing units and leverage approximately $97.5 million in additional public and private investment, according to state and local officials. The projects range from office-to-residential conversions and historic preservation to community services and new commercial activity.
The announcement places Albany at the center of New York politics and the state’s broader effort to revive urban downtowns after years of office vacancies, reduced commuter traffic and uneven retail performance.
What the CAP initiative means for Albany
The initiative is formally known as Championing Albany’s Potential, or CAP. It is separate from Capitalize Albany, the city’s economic development organization, although Capitalize Albany has a role in helping local applicants navigate the state funding process.
The CAP initiative represents a broader state commitment of more than $400 million for New York’s capital city. Of that total, $200 million is dedicated to implementing the Downtown Albany Strategy, a plan focused on housing, commercial corridors, public spaces, cultural assets and underused properties.
The downtown funding is divided into three primary streams:
- Transformative Projects Fund: Up to $120 million for large-scale redevelopment and marquee projects.
- Housing Investment Fund: Up to $40 million for new housing, including conversions of vacant or underused commercial buildings.
- Community Investment Fund: Up to $40 million for parks, public spaces, neighborhood amenities and community facilities.
The first $18.6 million represents an initial tranche rather than the full state commitment. Additional awards are expected as projects move through the state’s review, approval and construction processes.
The 10 projects receiving initial support
The first award package combines major redevelopment projects with smaller grants designed to activate historic properties and expand services.
Omni Plaza office transformation : $6.5 million
Jankow Companies is receiving the largest award in the first round, with $6.5 million for a redevelopment involving properties at 54 State Street and 30 South Pearl Street.
The plan calls for converting the historic high-rise at 54 State Street into approximately 120 residential apartments while renovating 30 South Pearl Street into Class-A office space. The $45 million project is intended to address two challenges facing downtown Albany: excess office capacity and a shortage of centrally located housing.
The project reflects the state’s preference for mixed-use redevelopment rather than a single-purpose office or residential district. New residents could support restaurants, shops and services, while upgraded office space could help retain employers near the State Capitol.
Union Station redevelopment : $4 million
Redburn Development Partners will receive $4 million for a redevelopment of historic Union Station at 575 Broadway.
The plan includes 50 workforce apartments targeted to households earning approximately 80% of the area median income. It also proposes an event and virtual-reality venue, a restaurant and bar, and projection mapping on the building’s exterior to create a public-facing art installation.
The project carries a total estimated cost of $16.5 million and combines housing with an entertainment and visitor destination. State and local officials have described that combination as important to building a downtown that remains active beyond government and business hours.
Kennedy Garage housing conversion : $1.5 million
Redburn is also receiving $1.5 million from the Housing Investment Fund to convert 2.5 underused floors at the Kennedy Garage on Columbia Street into 37 apartment units.
The project addresses a central goal of the CAP strategy: adding housing without requiring entirely new construction sites. Reusing existing downtown structures can preserve the city’s architectural character while placing residents near workplaces, transit, entertainment and public services.
The Kennedy Garage project is projected to cost approximately $6.5 million.
Park Place on Pearl : $3.5 million
Gordon Development will receive $3.5 million for Park Place on Pearl, a conversion of a largely vacant six-story office building at 39 North Pearl Street.
The project is expected to create 43 multifamily residential units while retaining ground-floor retail space. The building’s high vacancy rate illustrates the pressure on older commercial properties as office demand changes.
For downtown Albany, the conversion could provide a larger residential population along North Pearl Street while helping maintain a commercial presence at street level.
84 North Pearl Street : $775,000
JJ Property Holdings NY, LLC will receive $775,000 to convert a vacant five-story commercial building at 84 North Pearl Street into approximately 12 residential units and one commercial unit.
The smaller-scale project fits the CAP housing strategy by using an existing building and adding homes to a major downtown corridor. Its inclusion also shows that the first funding round is not limited to the largest development proposals.
5 Clinton Square : $600,000
JJ Property Holdings will receive another $600,000 for a project at 5 Clinton Square.
The proposal calls for nine market-rate apartments, along with new heating, ventilation, air-conditioning and electrical systems. The plan also includes converting a downstairs commercial area into a residential unit.
The award supports the state’s emphasis on rehabilitating properties that may be difficult to finance through conventional development alone.
The Rose Apartments : $500,000
Common Alley Too, LLC will receive $500,000 for The Rose Apartments at 927 Broadway.
The $5.2 million redevelopment will convert the building’s three upper floors into 14 workforce housing units. The first floor will be reconfigured to include one additional residential unit and two commercial spaces.
The project is a direct example of CAP’s adaptive-reuse model: preserving an existing structure, increasing the housing supply and maintaining space for local businesses.
Redburn North Pearl Street project : $250,000
A separate Redburn Development Partners project on North Pearl Street will receive $250,000.
Public descriptions identify the award as supporting additional housing or mixed-use activity along the corridor. The grant is smaller than the awards for the major office conversions, but it contributes to the broader effort to build a more continuous residential and commercial district.
Van Ostrande–Radliff House restoration : $150,000
The Historic Albany Foundation will receive $150,000 for restoration work at the Van Ostrande–Radliff House at 48 Hudson Avenue, recognized as Albany’s oldest building.
The work includes a sewer connection, interior water and sewer improvements, an accessible entrance ramp, exterior painting, lighting and signage. The project connects downtown redevelopment with historic preservation, ensuring that new investment does not come at the expense of Albany’s architectural heritage.
LGBTQ Community Empowerment Equity Hub : $850,000
In Our Own Voices, Inc., an Albany organization serving LGBTQ+ people of color, will receive $850,000 for an LGBTQ Community Empowerment Equity Hub.
The planned facility will include four affordable transitional housing units, a youth drop-in center, a food pantry, community gathering space, workforce development classrooms and business incubator suites.
The award expands the CAP program beyond conventional real estate development by supporting a community facility designed to address housing instability, health access, economic opportunity and social connection.
What the investment could mean for the Capital Region
The immediate effect of the first round will depend on project schedules, financing and construction activity. The state awards do not by themselves guarantee that every proposal will be completed on the same timetable.
Still, the package signals a coordinated strategy for downtown Albany. Nearly 300 planned housing units could increase the number of people living near the city center, while ground-floor retail, restaurants, event space and community facilities could help support more activity throughout the day and evening.
The investment also creates potential work for architects, contractors, tradespeople, property managers, small businesses and service providers across the Capital Region. By leveraging nearly $97.5 million in additional investment, the state is seeking to multiply the impact of its grants rather than treat them as stand-alone subsidies.
A larger question will be whether new housing and renovated commercial space are matched by improvements in public safety, transportation, cleanliness, streetscapes and downtown services. Some Albany officials and residents have welcomed the funding as a historic opportunity, while others have argued that construction alone will not resolve the city’s long-standing challenges.
Liberty Park remains a separate centerpiece of the broader Downtown Albany Strategy, with up to $40 million in state support identified for a major mixed-use district that could include office space, housing, creative uses and experiential retail.
For Albany residents, the initial awards provide the first concrete view of how the state plans to turn the CAP framework into visible projects. For the Capital Region, the results will be measured not only in dollars committed, but in apartments completed, vacant buildings reused, businesses opened and public spaces made more active.
The Governor’s announcement, CBS 6 Albany’s project coverage and the city’s Downtown Albany Strategy provide additional details on the program and its next phases. For continuing Albany NY news, Upstate New York news and New York politics coverage, New York News Daily will track the projects as they advance.
