The opening of the Bargain Grocery project in Troy, New York's North Central neighborhood involved the historic renovation and reuse of a building linked to the city's industrial past while also providing space for an innovative nonprofit and community-focused grocery store in a neighborhood formerly designated as a "food desert."
The 19,889-square-foot historic building at 558 River St. that houses the grocery store was made possible through a partnership between its local, mission-focused developer, First Columbia; community service nonprofit Compassion Coalition/Bargain Grocery; and NBT CEI-Boulos Impact Fund, a commercial real estate investment fund established by NBT Bank and CEI-Boulos Capital Management that provides affordable, workforce housing and a grocery store for residents in Troy.
Previous attempts to establish grocery stores in low-income neighborhoods in Troy and Albany struggled to maintain profitability and were forced to close in part due to heavy debt burdens. First Columbia has committed to supporting Bargain Grocery by providing the renovated space at cost. Bargain Grocery's rent covers the property's debt financing payments and the building's operating costs.
The partnership plans to gift the building to the Compassion Coalition after seven years, representing the compliance period for the New Markets Tax Credits — a program that incentivizes community development and economic growth through the use of tax credits — which makes the project financially feasible for the developer while retaining affordability for Bargain Grocery.
The grocery store was part of the larger Flanigan Square project. In addition to the Bargain Grocery project, the development includes the conversion of a historic former detachable shirt collar production factory into 72 units of affordable and workforce housing, the new construction of senior affordable housing and commercial space to reintroduce essential services to the neighborhood, such as childcare and recreation, all currently under construction.
In recognition, the Bargain Grocery store earned a 2025 CoStar Impact Award for lease of the year in the Albany market, as judged by a panel of local real estate professionals.
About the project: As was the case in other small and midsize cities along the Hudson River in upstate New York, Troy experienced a sustained period of disinvestment associated with industrial decline throughout the 20th century, leaving much of the city's industrial and commercial building stock vacant and underutilized. First Columbia has been working to help revitalize the city by redeveloping several of these vacant historic buildings.
In addition to the support of the NBT CEI-Boulos Impact Fund, First Columbia secured additional financing from Empire State Development as well as state and federal historic tax credits, New Markets Tax Credits and the New York State Office of Homes and Community Renewal. Debt financing was provided by M&T Bank and a Payment in Lieu of Taxes, or PILOT, exemption from the Rensselaer County Industrial Development Agency.
The building on River Street was originally occupied by Miller Hall & Harwell, a menswear manufacturer of detachable collars. The building served as the packaging and shipping center for the main factory, which was located across the street at 547 River St. The building retains its imposing architecture as a late 19th-century manufacturing facility, with an exterior that features arched openings, a cast stone belt course, and other stone and brick detailing.
Before the Bargain Grocery opened in September 2024, the location was a federally designated "low-income and low access" food desert. That means the neighborhood had a poverty rate of greater than 20% and lacked access to fresh food, with at least a third of its population living more than a mile from a grocery store.
The new Bargain Grocery is run by the Compassion Coalition, a community service nonprofit that serves low-income households in need. Bargain Grocery purchases inventory through a partnership with national and local vendors, acquiring overproduced food to resell at low prices to residents in Troy's North Central neighborhood. This helps prevent food waste and facilitates fresh food access for people with lower incomes.
Low-income families and individuals served by the Compassion Coalition can receive cards entitling them to free food at Bargain Grocery. The store's excess revenues fund the organization's other programs to help people in need, including donating food and household items.
Future plans for Bargain Grocery include opening a second-story cafe space and a prep kitchen. Bargain Grocery has committed to hiring low-income individuals and has entered into a community benefits agreement with the Vecino Group, the developer and owner of the Hudson Arthaus, an affordable housing project located within walking distance of the store. Bargain Grocery is working with the Vecino Group to develop specific workforce training and job placement programs for residents.
What the judges said: Tyler Culberson of Standard Brokerage Co. called the Bargain Grocery a "transformative project in the City of Troy." This sentiment was echoed by Jessica Richer of Hanna Commercial Real Estate, who applauded "the collaboration of the not-for-profit and the developer to fill a void and provide food for a needy area as well as their workforce initiatives." Felton McLaughlin of NAI Platform agreed, "The Bargain Grocery lease is potentially transformative for a downtrodden neighborhood in the inner city of Troy."
UPDATED They made it happen: Community members credited with establishing the Bargain Grocery in Troy include Project Manager Nathaniel Bette with Latham, New York-based First Columbia, CEO and Managing Director Sam Spencer of Brunswick, Maine-based CEI-Boulos Capital Management, and Senior Director of Affordable Housing Kimberly Twitchell with New York-based NBT Bank. Other key team members include the project architect, Mackenzie Architects, and the general contractor, Bette & Cring.
CoStar Market Manager Coleman Applegate contributed to this report.