Greystone Plans Mixed-Use Development in Harlem
- Dec 18, 2014
New York—Locally based developer Greystone has acquired four adjacent land parcels on 125th and 126th Streets in the Harlem neighborhood of Manhattan. The company plans to develop a single mixed-use property, about 12 stories high, on the site.
Greystone bought the parcels at an auction in U.S. Bankruptcy Court in the Southern District of New York for $11.5 million. The properties are at 69, 71, and 75 E. 125th St. and 58 E. 126th St., and when combined into one development, will include a mix of market-rate residential units and affordable housing units.
According to Jeffrey Simpson, head of Greystone Property Development, the 125th Street corridor is seeing interest from several large New York developers, bringing an influx of new residential units to the area. Other new kinds of construction projects are in progress there as well, including a Whole Foods on Lenox Ave.
Harlem still has the distinction of having the lowest rental rates in Manhattan—at least among buildings without a doorman—according to MNS. Average monthly rent for a non-doorman studio in the neighborhood as of November is $1,764. A one-bedroom unit is $2,074 and a two-bedroom unit is $2,727. By contrast, rents in Tribeca—the most expensive rental submarket in the borough—average $3,700 for a studio, $6,477 for one bedroom and $7,020 for two bedrooms.
Still, average rents are increasing rapidly in Harlem, MNS notes. In November, average monthly and annual rents increased a staggering 14.7 percent and 23.3 percent respectively in the neighborhood. Much, but not all of the increase was driven by an influx of higher priced units at the new developments 1 Morningside Drive and 1214 Fifth Ave.