December 22, 2026
Hey, it's Khem. Yep, still the only Khem Kadariya in the world!
and here is the new video just got published this week. Zillow is Lying You About Rochester!
In today's newsletter:
Manufacturing Investment: Reju textile regeneration hub lands at Eastman Business Park
French company picks Rochester for $390M North American facility with 70 jobs by 2029.
Housing Redevelopment Accelerates: Major projects clearing final financing barriers
Colgate Divinity campus secures $9.1M tax incentives for 136-unit project
Suburban office buildings trading near $1M as east-side vacancy tightens
Tech firm Iter Opus opens downtown HQ in Powers Building
Multifamily Capital Deployment: CAPREIT pays $46.2M for Rochester Highlands apartments
Institutional buyer nearly doubles 2018 purchase price, validates affordable housing demand.
REJU LANDS $390M WITH 70 NEW JOBS AS FRENCH TEXTILE REGENERATOR PICKS ROCHESTER'S EASTMAN BUSINESS PARK OVER ENTIRE NORTH AMERICA (RBJ)
French textile-to-textile regeneration company Reju is building its first North American facility in Rochester—a $390 million investment at Eastman Business Park creating approximately 70 jobs by end of 2029.
What's happening (from the filing):
18.9-acre vacant lot at Eastman Business Park
145,000 square-foot facility using IBM-developed technology
Processes 300 million textile articles per year (stuff that would otherwise hit landfills)
Jobs: engineers, technicians, machinists, production roles
Owned by Technip Energies (17,000+ employees across 34 countries)
State/local incentives:
$4M Empire State Development capital grant
Up to $1M through Excelsior Jobs Tax Credit (performance-based)
Monroe County, Rochester, and Greater Rochester Enterprise also involved
Why Rochester matters (from CEO Patrik Frisk's statement):
Technical talent pool, research institutions, and history of scaling industrial innovation. They already have a pilot in Frankfurt (Oct 2024) and selected a site in Netherlands (May 2025)—Rochester is the U.S. anchor.
What makes it strategic:
This is advanced manufacturing with a green angle. Reju's recycled polyester has a 50% lower carbon footprint than virgin polyester and is designed for multiple regenerations. The real economic story is 70 new skilled jobs in a facility that processes industrial-scale volume—when green tech hits that kind of production capacity, it usually means the economics work without subsidies long-term.
COLGATE DIVINITY CAMPUS REDEVELOPMENT GETS $9.1M TAX INCENTIVES WITH 136 UNITS AND HISTORIC TAX CREDITS NOW LOCKED (RBJ)
Monroe County's COMIDA approved $9.1 million in tax abatements for Angelo Ingrassia's $46.28 million redevelopment of the former Colgate Rochester Crozer Divinity School campus at 1100 South Goodman St.—the final financing piece after seven years.
The incentive package (approved Tuesday):
16-year custom PILOT: $7,299,612
Sales tax exemption: $1,592,400
Mortgage recording tax exemption: $225,000
What unlocked the deal:
State and National Register of Historic Places designations came through last year, securing $4.22 million in state/federal historic tax credits. Without those + the COMIDA package, the project couldn't pencil.
The project scope (136 total units):
Vistas at Montgomery: 5 boutique apartments (former president's residence)
Vistas at Saunders & Andrews: 32 affordable units ($6.45M to convert dorms)
Vistas at Strong Hall: mixed-use with banquet/chapel, offices, gym, 5 residential units ($5.825M)
Vistas at Highland: two new 48-unit buildings ($32.2M)
Rent targets and affordability:
Rents range $1,170 (1BR) to $2,700 (2BR). 27 units reserved for tenants earning up to 60% of Area Median Income.
Why COMIDA justified housing incentives:
COMIDA's housing study found Monroe County has a "significant housing supply shortage" across price points. The board sees housing as economic infrastructure—if workers can't find rentals, companies won't expand here. This deal uses Monroe County's new Premier Housing Plus program.
Timeline:
City extended site plan approval through February 2027. Application projects construction starting April 2026, completion October 2027.
What makes it critical for Rochester real estate:
Large infill projects like this (136 units) act as a pressure valve. If they deliver, bidding pressure eases in surrounding neighborhoods. If they stall (financing, litigation, construction spikes), demand spills into Highland Park area and the inner-ring suburbs. Watch the construction start date.
BUSHNELL'S BASIN OFFICE BUILDINGS SELL FOR $985K AS SUBURBAN VACANCY DROPS TO 17% ON EAST SIDE (RBJ)
640-642 Kraeg Road LLC (members Jonathan Oliva and Kyle Taylor) paid $985,000 for two three-story office buildings totaling 10,000 square feet in Bushnell's Basin (Town of Perinton). Built 1980. Seller was Kraeg Road Management LLC.
Why this matters (the market context):
Suburban office vacancy on the east side dropped to 17% from 19.2% in Q2 2024 (Cushman & Wakefield Marketbeat). That's a 2.2-point improvement in six months—the suburban office sector is quietly recovering.
What makes it actionable:
Deals under $1M in suburban Perinton usually mean local buyers betting on steady cash flow from small professional tenants. When vacancy tightens and buildings trade near the million-dollar mark, it signals landlords see rental rate stability ahead. If you're tracking Rochester commercial, watch east-side lease rates over the next 90 days.
ITER OPUS OPENS DOWNTOWN HQ IN POWERS BUILDING FEB. 1 WITH AI-DRIVEN HIRING PLATFORM LEVII.IO (RBJ)
Technology company Iter Opus Corp. will open its headquarters at 16 W. Main St. (historic Powers Building) on February 1. CEO Andrew Dimock cited Rochester's technical talent pool, research institutions, and ability to scale ideas into industries.
What they're building:
Levii.io—a private, AI-driven career and hiring system designed to reduce qualified candidates getting filtered out while helping employers plan long-term workforce needs.
Why Rochester (from Dimock):
Talent, infrastructure, and civic momentum to support next-gen tech companies. (Translation: RIT/U of R pipeline, lower costs than coastal cities, and regional economic development support.)
What to watch:
Iter Opus plans to add jobs and engage with innovation/education/workforce ecosystem as it grows. This is a small HQ move now, but the downtown Powers Building location signals they're betting on Rochester's ability to attract and retain tech talent. If Levii.io gains traction, headcount ramps could be material.
CAPREIT PAYS $46.2M FOR 504-UNIT ROCHESTER HIGHLANDS APARTMENTS, NEARLY DOUBLING 2018 PURCHASE PRICE (RBJ)
Maryland-based CAPREIT (through Tilden Rochester Highlands Apartments LLC) paid $46.2 million for the 504-unit Rochester Highlands affordable housing complex at 47 Green Knolls Dr. (Upper Mt. Hope neighborhood).
Price context:
California-based Rochester Highlands New York LLC bought the property for $24.5 million in December 2017. CAPREIT had been managing the garden-style complex since February 2018.
CAPREIT footprint:
Headquartered in Bethesda, founded 1993, owns/manages 15,000+ rental units across 14 states + D.C. Rochester Highlands is their only upstate New York property.
What this price tells you:
$46.2M for 504 units = ~$91,667/door. For affordable housing built in 1965, that's a price that assumes stable cash flow and long-term rent escalation. When institutional buyers pay nearly double what the prior owner paid eight years earlier, it means they see durable demand and limited new supply competing at this price point.
Why it matters for Rochester multifamily:
Institutional capital is still flowing into Rochester affordable housing. That validates the thesis that entry-level rental demand is structurally strong—which usually shows up 60-90 days later in the for-sale starter home market (buyers who can't find rentals start competing for ownership).
THIS WEEK'S WRAP-UP
Homeowners:
Manufacturing investment (Reju $390M), housing redevelopment moving (Colgate campus $46M), and institutional buyers paying up for apartments ($46.2M CAPREIT deal)—that's not hype, that's capital deployment. Your property sits in a market where real money is choosing Rochester.
Home buyers:
Multifamily prices climbing + new housing projects getting financed = supply coming but demand staying strong. If you're entry-level, don't wait for a "crash"—Rochester's affordability advantage (#1 for first-time buyers nationally) is drawing competition.
Investors:
Suburban office vacancy down 2.2 points in six months, downtown tech HQ openings, $50M+ in housing deals closing—the fundamentals are solid. Just underwrite conservatively on timelines (Colgate campus targeting October 2027, not tomorrow).
Bottom line:
Rochester's 2026 story continues: capital flowing in (textile regeneration, apartment sales, housing redevelopment), job creation happening (70 at Reju), and real estate executing. Watch construction start dates and suburban lease rates—those are the leading indicators.
See you next week,
Khem
