NYC Mixed-Use Project Breaks Ground
- Apr 29, 2019
A long-planned 400-unit mixed-income residential community has broken ground in the East Harlem neighborhood of New York City.
Richman Group Development, Bridges Development Group and Monadnock Development are behind the 19-story One East Harlem, which will also include 65,000 square feet of commercial space, 5,000 square feet of cultural facilities, 5,000 square feet of retail and 10,000 square feet of public space.
Of the more than 400 apartments, 300 will be designated affordable units. Located at 201 E. 125th St., the property is being designed by S9 Architecture to reflect the vibe of the neighborhood. One East Harlem will feature a gray brick façade and antique-bronze panels on one or both sides of window components.
“Impactful design does not have to be expensive or complicated,” said Navid Maqami, co-founder of S9 Architecture, in prepared remarks. “In this case, a simple gesture—the window detail—gives the building a unique presence through a thoughtful composition of materials.”
The One East Harlem development is part of the City of New York’s East 125th Street development project, a plan launched in 2008 to revitalize one of the main corridors of the neighborhood of Harlem. Along with the affordable units, the project is expected to create 300 construction jobs and more than 140 permanent jobs. The community is slated to open in 2021.
The project is being financed through several different avenues. One is through HDC and HPD’s Mixed-Middle Income Program, with HDC providing roughly $74 million in tax-exempt bonds for the project as well as $15 million in corporate reserves. HPD is contributing $33 million in subsidy and Citi provided a $63.5 million taxable participation loan and provided the credit enhancement during the construction phase. Credit enhancement during the permanent phase will be provided under a Freddie Mac/HDC risk share structure and the project also benefits from the Low-Income Housing Tax Credits program resulting in $16.7 million in tax credit equity.
Harlem has been a hotbed for multifamily development in recent months. In March, Happy Living Development secured a $138 million loan for its 155-unit condo building currently underway in West Harlem, while earlier this month, The Richman Group Development Corp. received $120 million in financing for its 404-unit community in East Harlem.