Jonathan Rose Cos. JV Lands $223M Loan for Phase II of Harlem Project
- Jun 30, 2021
The trio of partners behind a fully affordable housing community in Manhattan’s East Harlem neighborhood has secured $223 million in financing for its second and final phase.
Jonathan Rose Cos., L+M Development Partners and Acacia Network has received the financing from the New York City Housing Development Corp., the New York City Department of Housing Preservation and Development, Resolution A funding from the New York City Council and grant funding from the NYSERDA. The project also received funding from a letter of credit from Citibank and syndication of federal low-income housing tax credits and solar investment tax credits as well as New York State Brownfield Tax Credits to Goldman Sachs.
The financing will allow the developers to start construction on a 348-unit community that will be the second phase of Sendero Verde. The 34-story building will include a superintendent’s unit and 347 fully affordable units that will be restricted to several eligibility levels, ranging from formerly homeless to those making up to 90 percent of the AMI. The second phase will also be built with a community room, fitness room, computer lounge, exterior terrace, free Wi-Fi and package lockers.
The second phase is expected to break ground in the coming weeks with an expected completion in 2024. Once completed, the second community will join the first phase of Sendero Verde, a 361-unit community that was topped off in November 2020. The first phase project also received $223 million in construction financing from similar sources in July 2019.
Sendero Verde’s first phase included a two-building community that offered 360 fully affordable units alongside one superintendent’s unit. For the first project, the developers partnered with the nonprofit Civic Builders Inc. to construct a Harlem Children’s Zone school and with Union Settlement Association for a community services area. The first community was also built with an 18,000-square-foot publicly accessible courtyard that includes a stage for community events, children’s play area, outdoor exercise equipment and seating areas.
According to the developers, Sendero Verde is expected to be the largest multifamily development in the U.S. to meet Passive House standards when completed. The certification requires the reduction of a building’s energy consumption by 30 to 70 percent as compared to typical construction. To achieve the Passive House standard, the developers utilized several techniques including air-tight construction, increased insulation, triple-glazed windows, energy recovery from mechanical ventilation and individually heated and cooled units. Sendero Verde will also be Enterprise Green Communities certified, which requires green building practices.