The Real Deal New York

Galesi secures $100M to refi Harlem River Yards

Bank of America loan to go toward 500K sf industrial complex
By Miriam Hall | November 07, 2016 04:05PM

Harlem River Yards in the South Bronx

Harlem River Yards in the South Bronx

A joint venture led by the Galesi Group landed a $100 million loan from Bank of America to refinance Harlem River Yards, a 500,000-square-foot industrial complex in the South Bronx.

The financing from Bank of America includes a $74.5 million gap loan, and consolidates $25.5 million in previously issued loans, according to property records filed with the city Monday.

The Port Morris site is state-owned but controlled by a joint venture called Harlem River Yards Inc., which is led by Galesi. The upstate New York-based property developer and manager acquired the 99-year ground lease for the six-parcel site from the city in 1991.

Online grocer FreshDirect is currently building its new headquarters at the site. In 2013, the company received an $87 million subsidy from the city to help it move from Queens to the Bronx location.

A community group, South Bronx Unite, tried to block the company’s move to the area, saying that its trucks would pollute the community. The lawsuit, however, was ultimately dismissed.

Representatives from Galesi and Bank of America could not be immediately reached for comment.