NEW YORK CITY—L+M Development Partners and Tahl Propp Equities have secured construction financing from multiple sources for its $195-million Lexington Gardens II affordable housing project in East Harlem.
L+ M Development, which is headquartered in Larchmont, NY, and New York City-based Tahl Propp Equities are expected to begin construction this month on the 400-unit development at 1465 Park Ave.
The New York City Housing Development Corp. issued a $57.83-million tax-exempt bond and originated a $25.905-million taxable construction loan funded by Wells Fargo Bank, N.A. In addition, Wells Fargo Affordable Housing Community Development Corp. is making a $42.8 million low-income housing tax credit equity investment in the development. The developers closed on the construction financing on June 29th.
The project, funded under the city's HPD/HDC's “Mix and Match program,” will feature 104 studios, 126 one-bedrooms, 110 two-bedrooms, and 60 three-bedroom units for very low to middle-income households. A total of 80 units will be affordable to families with a household income between 27% and 30% of area median income, 119 units will be affordable to families with a household income between 47% and 50% of AMI, 40 units will be affordable to families with a household income between 57% and 60% of AMI, 80 units will be affordable to families with a household income ranging between 80% and 90% AMI, and 80 units will be affordable to families with a household income ranging between 125% and 165% of AMI. Lease-up for the development is scheduled to begin in mid-2020.
The development will also feature a 28,000-square-foot community facility which will be the new headquarters of the Northside Center, a non-profit that provides behavioral, mental health, education and enrichment programs to children and families living in poverty. A spokesperson for the developer states that Northside will enter into a long-term lease at Lexington Gardens and will relocate from its current headquarters at 35 E. 110th St.
The development will also include community facility space with approximately 3,000 square feet set aside for Union Settlement to expand its mental health counseling programs for adults and approximately 6,000 square feet of community facility space along 108th Street. Lexington Gardens will also offer approximately 4,000 square feet of space for local retail that will front Lexington Avenue.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
