Jonathan Rose Receives $41M Refi for Harlem Asset

Merchants Capital secured the financing for The Tapestry, a 12-story partially affordable property.
The Tapestry. Image courtesy of Merchants Capital
The Tapestry. Image courtesy of Merchants Capital

Mortgage banking company Merchants Capital has arranged $40.9 million in refinancing for The Tapestry, a 185-unit, partially affordable community in East Harlem, N.Y. The mortgage breaks down to a $35.4 million Freddie Mac credit enhancement and a $5.5 million cash loan.

Borrowers Jonathan Rose Cos. and Lettire Construction Corp. intend to replace a costlier in-place loan from 2008 with this much favorably priced structure that includes fixed-rate bonds instead of variable-rate bonds.

Located at 245 E. 124th St. in Upper Manhattan, the 12-story residential building is near the Robert F. Kennedy bridge and part of the 125th Street corridor, which is undergoing a revitalization process that includes several other residential and commercial projects.

According to Yardi Matrix, The Tapestry includes a fitness center, laundry facilities and 120 parking spaces. Additionally, The Tapestry features roughly 7,000 square feet of ground-floor retail space. Half of the apartments in the building are set aside market-rate tenants, 30 percent of the apartments cater to middle-income tenants that earn 130 percent of the area’s median income and the remainder of the units are for low-income tenants.