ECIDA Closes on Bond To Purchase the Avalon Hotel
Today, in one of the largest bonds in the Erie County Industrial Development Authority’s history it closed on a $30.6M Revenue Bond Series 2024A with Good Homes Communities, LLC (Good Homes) to purchase the former Avalon Hotel at 16 West 10th Street, Erie, PA.
Good Homes plans include transforming the Avalon from an obsolete, nearly abandoned hotel into a dynamic 197-unit affordable workforce apartment complex with retail and commercial space on the first floor. The facility will contain 108,855 sq. ft. of leasable area, and in addition to the 197 apartments the first and second floors will be reconfigured to include a clubhouse, a fitness center, a co-working lounge, mail room and laundry room for the tenants.
The project is scheduled for completion for Spring 2025.
This is a transformational project for downtown Erie and will have a significant economic impact on the city and region. Construction and renovations are set to begin immediately and is estimated to bring 100 construction jobs to the site. Once completely occupied, approximately 75 permanent jobs will be created. These include medical professionals, childcare, food service and building maintenance.
David Mitchell, GoodHomes Team Leader commented, “Erie’s stakeholder commitment in the renaissance of the downtown is very impressive and what drew us to the region. The support of the EDDC, Erie Insurance Company, Gannon University, UPMC Hamot, Regional Health Services and the ECRDA are making this development possible.”
“The Avalon Hotel has struggled for years and has been a drag on the center of downtown Erie. We couldn’t be more pleased to have played a small part in making this opportunity come to fruition,” said Tina Mengine, Executive Director of ECIDA and President & CEO of ECRDA.
With UPMC as a future tenant of the new facility, Boo Hagerty, President of Hamot Health Foundation had this to say, “We are so excited to welcome the GoodHomes team to Erie. The Avalon is an iconic building that needed new life. No better use than to create a modern, clean housing model that is affordable to a vast workforce that would love to make beautiful downtown Erie home. We are a proud partner and excited for the future.”
Drew Whiting, EDDC President was equally effusive about the project, commenting, “Good Homes, encouraged by the recent investments on State Street, and empowered by a public bond financing, came to Erie uniquely equipped to take on the project, and has been steadfast in its commitment. Good Homes’ redevelopment of Avalon, along with similar development in the area, serve as reinforcement of our mission and vision, and to double down on the work we’ve done to date.”
Mengine added, “This project is so consequential, it cannot be understated, and when you add the Renaissance Center project across the street they will literally redefine the center city. It’s been a pleasure to work with David and his team and we look forward to this next chapter of the Avalon and of our downtown.”
Good Homes Communities, LLC (GoodHomes) was formed in 2022 and is a vertically-integrated real estate development firm, focused on acquiring opportunistically distressed hospitality and senior living assets suitable for conversion into multifamily communities around the country. The GoodHomes team and its principals have been involved in residential development and redevelopment projects consisting of more than 5000 apartment units with a value in excess of $5 billion. GoodHomes’ portfolio currently consists of over 1500 multifamily units spread across eight states.