JV to Redevelop 150-Acre Portion of Former Psych Center

POUGHKEEPSIE, NY-A purchase and sales agreement has been reached on a 150-acre tract of land on the western portion of the former Hudson River Psychiatric Center property here.

A newly formed joint venture, Hudson Heritage CPC Joint Venture, is acquiring the parcel that runs along Route 9 from the Empire State Development Corp., for $2 million. The joint venture partners are Hudson Heritage, a real estate development firm formed in 1999 to acquire the Hudson River Psychiatric Center from New York State and Community Preservation Corp., a not-for-profit multi-family mortgage lender.

The joint venture is acquiring the western portion of the Hudson River Psychiatric Center, which includes most of the buildings on the site, including the landmark Main Building. Among the development scenarios being considered include: residential, hospitality and retail/commercial uses.

Hudson Heritage CPC Joint Venture plans to adaptively reuse the Main building, a National Landmark Building designed by Frederick Withers that was completed in 1871, with a mix of market rate and affordable rental apartments.

Arnold Moss, president of Hudson Heritage, notes, “This agreement with the state allows us to effectively move forward with our development of this landmark property. We hope to close in a six-month to one-year period.”

Michael Lappin, president and chief executive officer of Community Preservation Corp., adds, “The project has goals that mirror our mission as an organization. When completed, it may be CPC’s largest development outside New York City. We are excited to be part of preserving this National Landmark and restoring this property to the community’s tax base.”

Officials with the joint venture note that the Hudson River Psychiatric Center transferred its operations to the Ross Pavilion on the property in 2001. New York State will retain approximately 160 acres of land at the complex that runs east to Route 9G. The state is also keeping the waterfront property to the west of Route 9. A Catholic chapel will remain on land that the state will retain.