Construction on a $416 million, 698-unit mixed-income development in Inwood has begun, as announced today by New York Governor Kathy Hochul. The development’s two interconnected residential buildings will include a mixture of studio, one-, two-, and three-bedroom apartments, of which 40% will be reserved for residents earning at or below 80% of Area Median Income (AMI). Additionally, 10% of the units will be rent-stabilized with rents restricted up to 30% of 120% of AMI. As part of an effort to help bridge the digital divide, free broadband will be provided to all residents.
The project is being developed by a joint venture of L+M Development Partners, MSquared, and Taconic Partners. The Community League of the Heights (CLOTH) is the community sponsor and Beyer Blinder Belle Architects are the project architects. HSE represents the joint venture.
Financing for the affordable portion of the new development includes nearly $70 million in Low Income Housing Tax Credit (LIHTC) equity and nearly $82 million in tax-exempt bonds along with almost $182 million in taxable bonds provided by New York State Homes and Community Renewal. In addition, developers have applied for an estimated $39.5 million in tax credits following work completed to investigate and clean up contamination under Department of Environmental Conservation (DEC) oversight as part of the state’s successful Brownfield Cleanup Program (BCP).
The bonds were purchased by Wells Fargo Municipal Capital Strategies and Wells Fargo Bank. Credit enhancement will be provided by Fannie Mae at conversion. The Low-Income Housing Tax Credits were purchased by the Urban Investment Group within Goldman Sachs Asset Management. Additional sources include nearly $87 million in equity from the joint venture and the Urban Investment Group.
With all-electric heating and cooling, the project meets New York State Homes and Community Renewal sustainability standards and supports the goals set by the New York Climate Leadership and Community Protection Act. The project is pursuing a LEED B+C Silver certification.
Amenities will include landscaped courtyards, multiple roof decks, a fitness center, lounge and co-working spaces, and music rehearsal rooms.
In addition to the residential component, the 405 and 407 West 206th Street development will also include a supermarket, neighborhood retail space, parking, and a performing arts center owned and operated by the People’s Theatre Project.