Apollo, Taconic units aimed at home-grown Brooklyn buyers.

While most investors take the path of luxury when converting properties in New York City, Taconic Investment Partners and Apollo Real Estate Advisors are steering clear of the "G" word in the Gateway section of southeast Brooklyn.

"This is not an attempt to gentrify the neighborhood, but rather help the people currently residing there," said a spokesman for Taconic and Apollo's latest venture, MeadowWood at the Gateway.

The decidedly middleclass development, with unit prices between $100,000 and $300,000, the project is being marketed to those in the working-class who already live in the area. Sales began after Labor Day through Fillmore Real Estate.

"It can fill the void in the marketplace," Charles Bendit, a principal of Taconic Investment Partners, said. "One of [Mayor Michael] Bloomberg's missions is to create affordable housing on all levels. The middle income homeowner is the most underserved."

In addition to selling the 983 units, ranging from studios to three-bedrooms in high-rises and townhouses, at affordable prices, the sponsors are also offering current tenants of the building "insider discounts." Furthermore, those who meet moderate income qualifications can also receive financing incentives from the New York State Affordable Housing Corporation, arranged by the Housing Partnership Development Corporation, a non-profit affordable homeownership intermediary. Grants may also be available from the New York City Department of Housing Preservation and Development, arranged by Neighborhood Housing Services of Bedford Stuyvesant.

"This is giving people an opportunity to buy their own home and get in on the strong real estate market that is New York," said Sheila Martin, Esq., director of program operations for the Housing Partnership.

Martin that the corporation helps underwrite the costs and assist with closing costs for homebuyers who are eligible. Bendit added that he has collaborated with Chase and HSBC banks to "tailor financing that's manageable for buyers."

Taconic and Apollo purchased the units--the previous sponsor had only been able to sell 169 in the building--last year and invested a $40 million rejuvenation fund into renovations in November.

"It was a busted condo," said Bendit, adding that the previous owner was forced to lease the remaining 983 units.

Since renters and homeowners have different needs and concerns, Bendit felt it was best to unite and convert the entire property, spanning 19 buildings on a 21-acre lot, into a condominium development.

Updates to the building include remodeled lobbies with enhanced security features, modernized units with hardwood floors and granite countertops, new elevators and renovated laundry rooms.

The MeadowWood is not the only development in the area crafted for the middle-income buyer. Last month, Mayor Bloomberg, in collaboration with Nehemiah HDFC, the housing affiliate of the East Brooklyn Congregations (EBC), Gateway Center Properties Phase II and The Related Companies, broke ground on a 227-acre site in the same neighborhood.

Known as The Nehemiah Spring Creek Houses at Gateway Estates, the mixed-use community will consist of affordable housing for nearly 7,000 people, a 625,000 s/f retail center, more than 100 units of housing for seniors and a public school. Sale prices for single family homes will begin at $158,300 and homeowners are expected to begin moving into the first group of completed homes by the end of 2007.

The fact that the area was quickly developing enticed Bendit to the property. He was also pleased by the fact that potential buyers at the MeadowWood are not only getting a secure investment, but also a great value. Since the original buildings were constructed in the 1960's, the rooms are generally bigger than what contractors are building today.

"We saw this as an opportunity to bring something better to the area," he said. "The bones of the property were better and bigger than what you can get today."

Taconic's other main goal in renovating the property was to create a greater sense of community. The developers will open community rooms and generally improve the aesthetics of the MeadowWood.

"We want to make it a place where people can feel good about coming home," he said.