Ithaca Real Estate News - Weekly Round‑Up - April 28–May 2, 2025

Ithaca Real Estate News - Weekly Round‑Up

April 28 – May 2, 2025

Local real‑estate headlines moved fast this week, from a halted multi‑million‑dollar sell‑off to a fresh school‑tax proposal. Here’s what mattered and why.

1. Landmark Sale Pulled Back

(Brian Crandall, Ithaca Voice: Plans for sweeping sell-off of East Hill properties discontinued) 

Long‑time Collegetown landlord Pam Johnston has yanked her 27 East Hill properties off the market just three months after listing them. Although she fielded offers from individual buyers and national student‑housing firms, none met her price and terms. Johnston now plans to renovate several buildings herself and is eyeing the purchase of two additional historic properties.

Why it matters:

• The portfolio—worth “tens of millions”—would have been one of the biggest single transfers of Collegetown assets in years.

• All buildings sit inside the East Hill Historic District, limiting future high‑rise redevelopment and preserving neighborhood character.

• Johnston’s reversal signals continued tight supply for investors hunting scale in Cornell’s backyard.

2. Oak Avenue Project Super‑Sizes

(Brian Crandall, Ithaca Voice: Revised, upsized plans pitched for Collegetown site) 

Developer Charlie O’Connor of Modern Living Rentals has scrapped his earlier “undercooked” concept for 201 Oak Avenue and returned with a bolder plan: demolish the existing house and raise a five‑story, 46‑unit building with 91 bedrooms. The design leans on a pending zoning switch from CR‑3 to CR‑4, letting him build higher, cover more lot area, and skip parking. Planning Board members like the density but want warmer façade materials before giving a green light.

Why it matters:

• If approved, the project would nearly triple bedroom count on the gorge‑side block, easing—but also intensifying—student demand.

• Signals the city’s push for targeted up‑zoning in Collegetown to absorb growth while protecting lower‑scale streets nearby.

3. Campus Advantage Finds Its Way In

(Brian Crandall, Ithaca Voice: Local landlord partners with national firm on Collegetown housing) 

A decade after its aborted “State Street Triangle” tower, Texas‑based Campus Advantage is finally planting a flag in Ithaca—this time as an operations partner, not a developer. The firm will manage roughly 2,000 student beds across five properties (e.g., Collegetown Terrace) owned by local landlord Nick Robertson/FLX Real Estate Management. No equity stake is involved; the deal merges Campus Advantage’s national systems with Robertson’s local team.

Why it matters:

• Shows that outside capital still views Ithaca’s student market as lucrative—just with less appetite for ground‑up risk.

• Tenants may see strengthened marketing, analytics, and amenities typical of larger operators.

• Could foreshadow more institutional partnerships as small landlords look for scale without selling out.

4. School Budget Heads to Voters

(Megen Zerez, Ithaca Voice: Ithaca’s school budget finalized, set to go to voters May 20) 

The Ithaca City School District approved a $169 million budget that bumps spending 3.7 % and raises the property‑tax levy 3.8 %, staying under the state cap. Last year’s cuts to languages, class sizes, and staffing remain, but district leaders pledge to avoid deeper program reductions. Voters will decide on May 20.

Why it matters:

• School taxes make up the largest slice of most Ithaca property bills; the moderated hike—plus Tompkins County’s assessment freeze—should temper year‑over‑year shocks.

• Renters may feel indirect pressure if landlords pass on the increase.

• Staffing vacancies, especially among psychologists and social workers, highlight ongoing resource strains.

Takeaways for Investors, Owners & Renters

1. Inventory shake‑ups can vanish overnight. Johnston’s pullback keeps large‑scale acquisition opportunities scarce and underscores the premium on turn‑key Collegetown holdings.

2. Zoning tweaks equal opportunity. Watch the Oak Ave. rezoning case; faster approvals in CR‑4 zones could spark more mid‑rise proposals.

3. Institutional management is creeping in. Even without buying, national operators want a foothold—expect service upgrades and possible rent recalibrations.

4. Budget votes hit the bottom line. Mark May 20 on the calendar; a modest levy bump still feeds into both mortgage escrows and future rent calculations.

Stay tuned for next week’s roundup—and if you need deeper analysis or a property valuation in this shifting landscape, drop me a line.