Schenectady's Hamilton Hill Gets $115M Grocery and Housing Development

• A $115 million mixed-use development is moving forward at 750 State Street in Schenectady, New York, bringing a 17,250-square-foot Save A Lot grocery store and 85 apartments to the former auto dealership site.
• Three nearby residential buildings at 748 Albany Street, 758 Albany Street and 785 Albany Street will add another 86 units, bringing the broader project to 171 affordable and workforce apartments.
• The development will also include greenspace, a playground and parking, with grocery store construction expected to begin in 2027 and opening targeted for spring 2028.

What The Schenectady Project Includes

A major redevelopment is moving forward in Schenectady's Hamilton Hill neighborhood, combining a new grocery store with more than 170 apartments across several nearby sites. The $115 million project is centered at 750 State Street, a 2.2-acre property that formerly housed an auto dealership. The Schenectady County Legislature purchased the property for $950,000, and the existing building was demolished with help from a $2.75 million Restore New York grant. The main development will include an 85-unit residential building, the new Save A Lot grocery store, greenspace, a playground and parking. The site will undergo environmental remediation through New York's Brownfield Program, with cleanup expected to continue through 2027.

What The Housing Plans Add to Hamilton Hill

The project extends beyond the State Street parcel. Three additional buildings planned at 748 Albany Street, 758 Albany Street and 785 Albany Street will add another 86 apartments. Combined with the 85 units at 750 State Street, the broader development will deliver 171 affordable and workforce housing units. The apartments will include one-, two- and three-bedroom layouts. Thirty-six units will be designated as supportive housing, providing housing for residents who may need additional services, including people with disabilities and people with histories of homelessness. The additional Albany Street sites were created after nine vacant buildings were demolished with Metroplex funding. Empire State Development is providing $1 million through its Regional Council initiative to support construction of the 86 units.

What Save A Lot Brings to the Development

The project's commercial anchor will be a 17,250-square-foot Save A Lot grocery store, giving Hamilton Hill a new full-service food retailer. The neighborhood has long faced limited access to grocery stores. Save A Lot previously operated a location at 520 Altamont Avenue, which closed in 2021. The new store is expected to offer private-label and national-brand products, fresh produce and an in-store meat department. Construction is expected to begin in 2027, with the store targeting a spring 2028 opening. The grocery component is important beyond its retail role. It gives the new housing a nearby source for everyday necessities while also creating a commercial anchor for the surrounding neighborhood.

What The Development Means for Hamilton Hill

The redevelopment replaces long-vacant and underused properties with housing, retail and public-facing amenities. The broader Hamilton Hill and Vale neighborhood has been the focus of years of efforts to attract investment and address food access and housing needs. The new project brings several pieces together in one development, including affordable housing, workforce housing, supportive housing and a neighborhood grocery store. The approach also makes use of land that otherwise would have remained vacant or underutilized, while adding new greenspace and a playground.

What The Public Investment Supports

Several public entities are contributing to the redevelopment. The Schenectady County Metroplex Development Authority has played a central role in assembling and preparing the properties. Schenectady County is also providing $3 million in grant funding to support construction. Empire State Development contributed the $2.75 million Restore New York grant used for demolition at the former dealership site and another $1 million toward the three Albany Street residential buildings. The private development team includes The Community Builders, Five Corners Development and Save A Lot, working alongside the county, Metroplex and New York state. The Community Builders is serving as the lead housing developer.

What The Timeline Looks Like

The project still has several steps ahead before construction is complete. Environmental cleanup at 750 State Street is expected to continue through 2027, while construction of the grocery store is also expected to begin next year. Save A Lot is targeting a spring 2028 opening. Once the broader project is completed, the area will have a new grocery store, 171 affordable and workforce housing units, greenspace, a playground and parking. For Schenectady, the project represents a substantial redevelopment of a former commercial property while addressing two major neighborhood needs at the same time: housing and grocery access.