Nonprofit Fortune Society signs $31M construction loan for 82-unit development in East Harlem
The nonprofit Fortune Society as borrower signed a new construction loan with lender JPMorgan Chase and NYS Homeless Housing and Assistance Corporation valued at $31 million for the development at 107 East 123rd Street in East Harlem, Manhattan.
On the lot, there is one active new building construction project for a 82-unit, 55,051 square-foot residential (R-2) building. The project was submitted by NYC Department of Housing Preservation and Development and filed by Rona Reodica with plans filed November 5, 2021 and it has not been permitted yet.
The deal closed on March 8, 2024 and was recorded on March 28, 2024.
The signatory for Fortune Society was Stanley Richards. The signatory for JPMorgan Chase and NYS Homeless Housing and Assistance Corporation was Jane E. Silverman of JPMorgan Chase.
The property
The parcel has frontage of 85 feet and is 100 feet deep with a total lot size of 8,578 square feet. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.5 million.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has not received any significant violations in the last year.
The neighborhood
In East Harlem, The majority, or 51 percent of the 52.3 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 21 percent of the space. In sales, East Harlem has 1.4 times the average sales volume among other neighborhoods with $413.9 million in sales volume in the last two years and is the 23rd highest in Manhattan. For development, East Harlem has 1.6 times the average amount of major developments relative to other neighborhoods and is the 18th highest in Manhattan. It had 1.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other development buildings in the past 12 months.
The block
On this tax block, PincusCo has identified the owners of 14 of the 44 commercial properties representing 211,052 square feet of the 336,257 square feet. The largest owner is Sackman Enterprises, followed by Hope Community and then Goodfriend Management.
On the tax block, there was one new building construction project filed totaling 55,051 square feet. It is a 82-unit, 55,051 square-foot residential (R-2) building submitted by NYC Department of Housing Preservation and Development and filed by Rona Reodica with plans filed November 5, 2021 and it has not been permitted yet.
The majority, or 30 percent of the 336,257 square feet of built space are office buildings, with industrial buildings next occupying 28 percent of the space.
The borrower
The PincusCo database currently indicates that Fortune Society owned at least one commercial property in New York City with 26,334 square feet and a city-determined market value of $5.2 million. (Market value is typically about 50% of actual value.) The portfolio has $13.2 million in debt, borrowed from Enterprise Community Partners. The portfolio consists of at least a single hotel property. It is located in Manhattan.
Direct link to Acris document. link