$416M Mixed-Income Development Breaks Ground in Upper Manhattan
Situated in the Inwood neighborhood, the new residential towers will offer 281 affordable units.
A rendering of the project. Image courtesy of Gov. Kathy Hochul’s office
Two interconnected, mixed-income residential towers with nearly 700 apartments, including 281 affordable units, are being built in Upper Manhattan’s Inwood neighborhood. The $461 million mixed-use development at 405 and 407 W. 206th St. is part of New York Gov. Kathy Hochul’s $25 billion housing plan.
Hochul announced the start of construction last week. The governor’s plan aims to create or preserve 100,000 affordable homes across New York with supportive services for vulnerable populations, along with electrification for an additional 50,000 homes. Construction is estimated to be completed by early 2026, according to Yardi Matrix data.
The Inwood development is a joint venture among LMXD, an affiliate of L + M Development Partners, MSquared and Taconic Partners. The Community League of the Heights is the community sponsor. The buildings were designed by Beyer Blinder Belle Architects.
Alicia Glen, founder and managing principal of MSquared, said in prepared remarks that the development is an example of the public and private sector coming together to create homes that are affordable, sustainable and opportunities for residents.
A rendering of the project. Image courtesy of Gov. Kathy Hochul’s office
Financing for the affordable portion of the development includes nearly $70 million in Low-Income Housing Tax Credit equity and nearly $82 million in tax-exempt bonds, as well as almost $182 million in taxable bonds provided by New York State Homes and Community Renewal. The property’s developers are also applying for an estimated $39.5 million in tax credits following work completed to investigate and clean up contamination under Department of Environmental Conservation oversight as part of the state’s Brownfield Cleanup Program.
The bonds were purchased by Wells Fargo Municipal Capital Strategies and Wells Fargo Bank. Credit enhancement will be provided by Fannie Mae at conversion. The Low-Income Housing Tax Credits were purchased by Goldman Sachs Asset Management’s Urban Investment Group. Additional sources of financing include nearly $87 million in equity from the joint venture and GSAM’s Urban Investment Group, which has invested more than $17 billion in holistic economic development since 2001.
Project details
There will be 698 units between the two buildings, which will feature a mix of studio, one-, two- and three-bedroom apartments. Forty percent of the apartments will be reserved for residents earning at or below 80 percent of the Area Median Income. An additional 10 percent will have rents restricted up to 30 percent of 120 percent of AMI and be subject to New York City Rent Stabilization Guidelines. The remaining units will be market-rate apartments.
Shared amenities include more than 110 parking spaces, landscaped courtyards, an attended lobby, multiple roof decks, a fitness center, coworking spaces, lounge spaces and music rehearsal rooms. The complex will host more than 38,000 square feet of retail space, including a supermarket built as part of the city’s Food Retail Expansion to Support Health Program. It will also feature an immigrant-centered performing arts center to be owned and operated by the People’s Theatre Project.
The buildings will offer free broadband to residents as part of the governor’s ConnectAll initiative to bring high-speed internet to underserved communities. The project is pursuing a LEED BD+C Silver certification and meets the new sustainability standards established by New York State HCR in 2022 for promotion of healthier living environments and energy efficient buildings. The transit-oriented property is located between 9th and 10th avenues and is within a quarter mile of a subway station.
