More than three years after filing building permits, the Irgang Group is ready to get going on a multifamily project in Harlem.
Dwight Mortgage Trust originated a $70 million construction loan for the development at 33-35 West 125th Street, the Commercial Observer reported. The proceeds of the financing will go towards construction costs and the establishment of an interest reserve.
A Meridian Capital Group led by Simon Rosenfeld and Ariel Taieb arranged the financing for the joint venture, which includes Pramukh Realty.
Back in the spring of 2022, Irgang filed plans with the Department of Buildings to build an approximately 144,000-square-foot property. The 195-foot-tall building would feature 21 stories with 162 residential units.
The project has since expanded to 180 units, ranging from studios to two-bedroom apartments. The development will also include 17,000 square feet of commercial space and residential amenities such as a fitness center, a rooftop terrace and a library.
Critically, the development is eligible for a 35-year tax abatement under the lapsed 421a program, according to Dwight Mortgage, because 30 percent of the units will be designated as affordable housing. The completion deadline to qualify for the tax abatement was pushed back to 2031 in last year’s state budget.
Construction is expected to begin next year, according to Meridian; Irgang has owned the development site since 1991.
A few months ago, Dwight Mortgage provided a $155 million bridge loan to the Beitel Group to refinance a 405-unit rental complex at 261 and 315 Grand Concourse in the Mott Haven section of the Bronx. The refinancing provided a “significant cash-out” to the developer, according to the Dwight Capital real estate investment trust affiliate.
Elsewhere in Harlem, Slate Property Group and Evenhar Development are pursuing a medical office and community facility property at 1578 Lexington Avenue, blocks from Mount Sinai’s main campus. They are eyeing a 13-story, 175,000-square-foot building with 150,000 square feet of medical office space and 19,000 square feet for the East Harlem Center.
— Holden Walter-Warner
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Developer plans 162 units on Harlem’s 125th Street
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