Manhattan Affordable Project Lands $223M in Financing
- Jul 17, 2019
The developers behind a fully affordable community in New York City have secured $223 million to finance the first phase of development. L+M Development Partners, Jonathan Rose Cos. and Acacia Network closed on the financing for phase one of Sendero Verde, a mixed-use Passive House multifamily development in East Harlem that will eventually house nearly 700 affordable units.
Located at 1681 Madison Ave., the first phase of Sendero Verde was financed with construction loans 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 NYSERDA. Additionally, the project received a letter of credit from Bank of America, a syndication of federal low-income housing tax credits and solar investment tax credits, and New York State Brownfield Tax Credits to Bank of America.
A range of services
The first phase of the project, of which construction is expected to begin within the coming weeks, includes 360 affordable housing units, space for a school and a gym, a space for local community group Union Settlement Association and an 18,000-square-foot public courtyard with a children’s play area, adult outdoor exercise equipment, seating areas and a stage for community events.
Phase two will include approximately 350 affordable housing units for a variety of income levels. Once the second phase of the project is complete, developers expect Sendero Verde to be the largest development in the nation to meet Passive House standards and will use 60 to 70 percent less energy than a similar building would. The building will also offer social services through the developers’ partnership with PROMESA Inc., an affiliate of Acacia Network, which has been part of the neighborhood for more than 60 years.
Last month, an LGBTQ-friendly affordable senior housing community was given the green light to be developed in the Little Italy neighborhood of Manhattan, after it was approved by the New York City Council. That project is being developed by Pennrose LLC, RiseBoro Community Partnership and Habitat for Humanity New York City, with support from city agencies including HPD and NYCHDC.