The Real Deal New York

Tahl Propp, NYC Partnership Housing land $162M loan for pair of Harlem buildings

Money comes from Deutsche Bank and replaces prior $92M loan
By Eddie Small | November 30, 2018 02:45PM

From left: 112 East 128th Street and 107 East 126th Street (Credit: Tahl Propp Equities)

Tahl Propp Equities and NYC Partnership Housing have received a loan of $162 million for two residential buildings in Harlem.

Deutsche Bank provided the financing for the buildings at 112 East 128th Street and 107 East 126th Street, according to property records. Both properties are affordable housing buildings, and they contain a total of 412 units. The debt replaces a 2013 loan for $91.9 million from Centerline Mortgage.

The 128th Street building is known as AK Houses and stands 12 stories tall with 157 units. The 126th Street building is known as 1775 Houses and stands 11 stories tall with 255 units.

Tahl Propp Equities founder Joseph Tahl said the financing is a 25-year fixed-rate loan, and they will use the money to help pay for capital repairs and improvements to the buildings. He stressed that this would not lead to rent increases for any of the tenants.

The Carlton Group raised the financing for this deal on behalf of Tahl Propp, according to a Carlton Group spokesman.

Nearby, Reifer Management Corporation recently sold its East Harlem multifamily portfolio to an LLC linked to GFI Realty for $11.5 million, while Camber Property Group and Belveron Partners purchased 1871 Seventh Avenue in West Harlem, along with 107 West 109th Street in Morningside Heights and 287 Audubon Avenue in Washington Heights, for $60 million.

Deutsche Bank, meanwhile, is facing a growing number of legal woes. German police raided the institution’s offices on Thursday in connection with suspected money laundering related to the Panama Papers. The bank is one of the most active real estate lenders in New York, where it provided $2.67 billion in construction debt and $6.17 billion in non-construction financing between October 2016 and September 2017.