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Low Interest Rates, Rising Rents Spark Harlem Investment Boom

NEW YORK CITY-Longtime owners in Harlem cash in as high rents elsewhere in Manhattan push tenants north, while buyers are equally pleased to take advantage of record-low interest rates. A broker for a recent $3.9-million, two-building sale tells GlobeSt.com that less-prime buys are becoming increasingly attractive to major investors.

By Michael Gilliard | Updated on October 14, 2002

NEW YORK CITY-Marking the latest in several family-owned sales in Harlem, two buildings totaling 61free-market residential units have been sold for $3.9 million, in a deal that closed last month. A pair of senior executive brokers from Bensen and Associates negotiated both sides of the transaction. Amit Doshi represented seller the Faust family, who have owned the buildings for 10 years, while Adelaide Polsinelli brokered on behalf of first-time buyers Edificio LLC, a seven-member consortium.

Polsinelli tells GlobeSt.com that new investors looking at Harlem space is a sign of the times. “Families who have owned property in Harlem for years are selling now because they never thought they’d see these kinds of offers five years ago, and buyers are capitalizing on low interest rates and snapping up space as a hedge on the Harlem revival,” says Polsinelli. “Those with short-term goals are renovating the properties they have owned for decades and then putting them on the market, while Manhattan investors are starting to look at this less-prime real estate, as some sections of Harlem have seen a 25% to 30% rent spike over the past five years.”

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