Developer secures funding for $28M low-income Harlem rehab project

New York /
Jan.January 08, 2010 04:54 PM

L + M Development Partners, a Larchmont-based firm specializing in affordable housing headed by Ron Moelis, has closed on $27.7 million in construction funding for the rehabilitation of a 120-unit affordable housing complex in Harlem at 1428 Fifth Avenue, David Dishy, executive vice president of acquisitions and investments with L + M Development, told The Real Deal.

Although the residential market is tenuous, Dishy said that the financial climate is amenable to this kind of project. Two years ago, Dishy said, his development group might have been priced out of a project similar to the one it’s undertaking.

The rehabilitation project will provide new facilities and upgrades, for the Section 8 rental building between 116th and 117th streets, including a new roof, new EnergyStar appliances and a new building-wide ventilation system to improve overall air quality, he said.

Low-income housing rehabbing is part of a larger trend in New York City toward refurbishing rather than constructing, Dishy said, as preservation becomes an increasingly attractive option to low-income housing proponents.

“The city’s focus on preservation is a function of… [getting] better bang for the buck,” Dishy said, adding that he sees it as a viable option for other metropolitan regions.

The Harlem project, expected to be completed within a year, is being funded through tax exempt bonds, equity from low-income housing credits purchased by Goldman Sachs and a $1.8 million loan from the Department of Housing Preservation and Development.

The project will create 176 construction-related jobs, according to L + M.

Adjacent to 1428 Fifth Avenue is a vacant lot, which L + M plans to use for a separate mixed-income, mixed-use development. Although it is still in the planning stages, Dishy said that the building, to be constructed on a parcel his firm purchased for $5.1 million, will include some low-income units. That project is scheduled to be complete by mid-2011.

The former owner of 1428 Fifth Avenue, Metrovest, declined to comment on the development.


Related Articles

arrow_forward_ios
L+M Development Partners' Ron Moelis and a rendering of Sendero Verdo (Photos via L+M; Handel Architects)

L+M in deal with union laborers to cut wages on affordable projects

L+M in deal with union laborers to cut wages on affordable projects
Related chairman Stephen Ross and 265-475 Cherry Street (Getty; Google Maps)

Related to buy Section 8 buildings for $435M

Related to buy Section 8 buildings for $435M
Denizen Bushwick at 54 Noll Street (Photos via Denizen Bushwick)

All Year nears $650M financing for Bushwick luxury rentals

All Year nears $650M financing for Bushwick luxury rentals
30 Hudson Street in Jersey City and WeWork CEO Sandeep Mathrani (Wikipedia)

WeWork scores big lease at Goldman Sachs’ Jersey City office tower

WeWork scores big lease at Goldman Sachs’ Jersey City office tower
A photo illustration of Goldman Sachs CEO David Solomon (Getty; iStock)

Goldman Sachs to juice cash-strapped RE owners with $3B fund

Goldman Sachs to juice cash-strapped RE owners with $3B fund
Goldman CEO David Solomon and 1 Flatbush Avenue (Credit: Michael Kovac/Getty Images; Hill West Architects)

Goldman reactivates real estate platform in NYC with big DoBro buy

Goldman reactivates real estate platform in NYC with big DoBro buy
The Coca-Cola building at 711 Fifth Avenue and Michael Shvo (Credit: Google Maps)

Michael Shvo, partners secure $545M loan for Coca-Cola building

Michael Shvo, partners secure $545M loan for Coca-Cola building
Clockwise from the bottom: Judge Arthur Engoron, JDS Development’s Michael Stern, L&M’s Ron Moelis, Josh Siegel of Starrett with a rendering of Two Bridges (Credit: Twitter and Curbed NY)

Judge deals another blow to Two Bridges towers

Judge deals another blow to Two Bridges towers
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...