Mass Development Lands $45M for Harlem Condo Project

Mass Development has secured a $45 million senior construction loan for the ground-up development of a 72-unit condominium project at 264-272 W. 135th St., in Harlem, N.Y. Scale Lending—Slate Property Group’s financing arm—issued the floating-rate note, which is scheduled to mature in January 2029 and has two, six-month extension possibilities. Arrow Real Estate Advisors brokered the deal.

Brooklyn-based City Builders serves as the project’s general contractor, with BUILTD as architect and Reavis in charge of residential sales.

Upon completion, the 11-story property will feature units with studio, one-, two- and three-bedroom units. The first two floors will house the lobby area, 12,000 square feet of retail space and 15,000 square feet of community space leased to a daycare operator. A shared amenity suite on the top floor will include a fitness center, garden, resident lounge, spa, children’s playroom and movie room. The development is slated for delivery in the summer of 2028.

Located in West Harlem, the development is one block east of St. Nicholas Park and the subway station on 135th Street, which connects the area to Downtown Manhattan, Brooklyn and Queens. The Yankee Stadium is 12 blocks northeast, across the Harlem River.

Manhattan condo market unfazed by challenges

Because of a challenging financial backdrop, developers are approaching new condominium development with more discipline when it comes to capital structuring and execution. The sector’s financial headwinds stem largely from higher construction costs and elevated interest rates. In response, developers are focusing on well-located, amenity-rich projects with flexible floor plans that are better positioned to attract buyers.

Across Manhattan, the condominium market not only performs well despite these challenges, but sales and median prices continue to rise, with demand mainly concentrated in move-in-ready units with modern finishes.