Artimus, Grid Group Secure $210M for 28-Story West Harlem Project

Key Takeaway

• Artimus and Grid Group secured $210 million from Valley National Bank for a 28-story, 490-unit mixed-use project in West Harlem.
• The development at 1440 Amsterdam Avenue will include 273 parking spaces and span 470,000 square feet.
• The project aims to use the expired 421a tax abatement, requiring up to 30% of units to be income-restricted.

Major Financing Secured for West Harlem Project

Artimus and Grid Group have successfully secured $210 million in financing from Valley National Bank for a significant development project at 1440 Amsterdam Avenue in West Harlem. This financing package includes a $123 million senior note, a $55 million note, and a $32 million subordinate note. The project, which will deliver a 28-story, 490-unit mixed-use building, is a notable addition to the area, reflecting the ongoing transformation and investment in West Harlem. Excavation for the project began in September, following Artimus' acquisition of a 50 percent stake in the project for $17 million.

Project Details and Development Plans

The development at 1440 Amsterdam Avenue is set to include 273 enclosed parking spaces and will span 470,000 square feet. This ambitious project marks a significant shift from the original plan envisioned by Lefkas Realty, which had aimed for a seven-story condo. The new plan, spearheaded by Artimus and Grid Group, aims to capitalize on the site's potential by creating a high-density, mixed-use development. The developers have also filed to use the since-lapsed 421a tax abatement, which mandates that 25 to 30 percent of the units be income-restricted, addressing some community concerns about affordability.

Broader Market Context and Comparisons

The financing and development of the West Harlem project come at a time when New York City's real estate market is seeing significant activity, particularly in the office leasing sector. For instance, Michael Bloomberg’s financial media company recently signed a nearly 1 million-square-foot lease, highlighting the ongoing demand for large office spaces. Additionally, the coworking firm Industrious has taken over WeWork’s former headquarters in Midtown Manhattan, reflecting a shift towards more flexible office space solutions. These developments underscore the dynamic nature of New York City's real estate market, where both residential and commercial projects are adapting to new economic realities and demands.

Implications for West Harlem and Beyond

The Artimus and Grid Group project is emblematic of the broader trends in urban development, particularly in areas like West Harlem that are experiencing significant investment and transformation. The inclusion of income-restricted units under the 421a tax abatement program is a critical aspect of the project, addressing community concerns about affordability and inclusivity. This development also highlights the importance of strategic financing and partnerships in bringing large-scale projects to fruition. As the project progresses, it is likely to have a substantial impact on the local community, providing much-needed housing and potentially spurring further investment in the area.