Elm Grove Co. has big plans for Rochester housing with $30M more invested

ROCHESTER — Elm Grove Companies, a real estate investment firm based in Hooksett, likes doing business in Rochester.

"We have been in Rochester since 2009," said Newton Kershaw III, one of the company's founders and principals. "We have found the city to be development and business friendly. And historically, as costs rise, Rochester is a good location for people looking for an affordable place to live, and one that they can commute to their jobs from. Rochester is a great community to do business with."

The owners of the Country Brook (Hemingway Drive), affordable housing apartments, recently made another big investment in Rochester.

Kershaw III, of Elm Grove Companies, said it has acquired Highfield Commons (2 Pierce Drive), with 96 townhome style apartments, plus a parcel adjacent with 40 future housing lots, six already fully permitted, and another large parcel of land Kershaw said their intent is to use to create workforce housing. The total purchase price is in excess of $30 million.

“Elm Grove is excited to grow its footprint in a city which welcomes developers and with whom we have a long-standing working relationship,” said Kershaw III. “Rochester has experienced immense growth and improvement over the 15 years we’ve been invested here. This acquisition brings our Rochester unit count to an excess of 300 apartments, and we are excited to be working on two additional local multifamily communities, currently in the pre-development phase.”

Kershaw said Country Brook, which is also 96 units, were built in 1986. He said Elm Grove did extensive renovations and created affordable housing units.

"It was a great example of affordable housing," he said. "We were able to use income averaging in the formula, making the apartments available for people who are 20%-80% of the average medium income rate. That gave us a wider range for the properties."

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Kershaw said Elm Grove acquired Highland Commons late March, along with the other properties and plan a three-stage approach. He said the townhouses are already occupied.

"The apartments, built in 2016-2017 are in good shape," he said. "They are mostly three-bedroom townhouse units with 2.5 baths and a garage underneath. There are a couple of two-bedroom (units), I believe."

The land with the six approved lots are considered pre-development and will be the next phase. Kershaw said Elm Grove plans to develop all 40 as single-family homes.

"I think the six can be completed in about 18 months," he said. "The additional lots will be developed over three years."

The final piece of the property is untouched at the moment.

"Then there is the 66.7 acres parcel of land," he said. "We will look at that last. Our intent right now is to develop workforce housing."

Elm Grove currently owns and manages 1,800 apartments, both market rate and affordable, according to the company.

This article originally appeared on Fosters Daily Democrat: Elm Grove Co. has big plans for Rochester housing with $30M more invested