Innovative financing paves way for Harlem complex

The city has broken ground for One East Harlem, a one-acre, mixed-use development in East Harlem.
The project is a key component of the City’s East 125th Street development project.
The project will deliver just over 400 housing units, 300 units of which will be affordable; 65,000 s/f of retail space including a Food Bazaar supermarket; 5,000 s/f dedicated to local retail; 10,000 s/f of public open space and; 5,000 s/f of cultural space to be tenanted by Groove With Me, a local development organization offering free dance classes and performance opportunities for young girls.
The project is expected to create nearly 300 construction jobs and over 140 permanent jobs. It is expected to be complete in 2021.
The One East Harlem project was borne out of the East 125th Street Development, a revitalization plan created in partnership with the East 125th Street Development Task Force to bring affordable housing, quality jobs as well as space for retail, arts and culture.
There have been two phases of development, including 48 low-income units and approximately 5,000 s/f of retail space on the southeast corner of East 125th Street and Third Avenue.
The second phase includes the New York Proton Center, the first proton beam therapy facility in New York State that will provide advanced cancer treatment.
The project is financed under HDC and HPD’s Mixed-Middle Income Program. HDC is providing roughly $74 million in tax-exempt bonds and another $15 million in corporate reserves. HPD is contributing $33 million in subsidy.
Citi provided a $63.5 million taxable participation loan and provided the credit enhancement during the construction phase. Credit enhancement during the permanent phase will be provided under a Freddie Mac/HDC risk share structure.
The project benefits from Low-Income Housing Tax Credits (LIHTC) resulting in $16.7 million in tax credit equity. Additionally, former City Council Speaker Melissa Mark-Viverito committed $3 million in Reso A funding.
Officials attending the ground breaking included New York City Department of Housing Preservation and Development (HPD) Acting Commissioner Eric Enderlin,
Housing Development Corporation (HDC) Acting President Richard Froehlich, and Economic Development Corporation (NYCEDC) Executive Vice President and COO Rachel Loeb.
Development partners are Richman Group Development Corporation, Bridges Development Group, Monadnock Development, Hope Community Development Inc. and El Barrio Operation Fightback,.
“HDC is proud of its role in making One East Harlem possible in part due to its innovative financing techniques and the creative vision of many dedicated stakeholders” said HDC Acting President Richard Froehlich.
“We consistently demonstrate the transformative outcomes that can be achieved when working within a public-private partnership model. Thanks to our development and financial partners, local elected officials, community representatives, and of course our incredible teams at HDC, HPD, and EDC who all worked tirelessly to ensure this project provided much-needed affordable housing and lasting economic opportunity to the East Harlem community.”
Council Member Diana Ayala, said, “After years of planning, I am excited to finally see this project come to fruition.”