Merchants Capital Provides $104M for NYCHA Harlem River Houses Rehabilitation Project in West Harlem, Manhattan

Merchants Capital has provided $104 million in construction financing for a major rehabilitation project at Harlem River Houses and the adjacent Harlem River II Campus, collectively known as Harlem River Houses I and II. The New York City Housing Authority (NYCHA) public housing complex sits between 151st and 153rd Street, Macombs Place, and Harlem River Drive in Harlem.

Completed in 1937, the complex comprises 690 affordable housing units across eight buildings offered to low-income residents in the area. In 1979, Harlem River Houses was recognized on the National Register of Historic Places for its noteworthy architecture and social context in New York City’s real estate history as an early example of public housing created for low-income African American residents.

Today, the complex houses more than 1,400 residents.

Existing site plan – Harlem River Houses

LPC-approved master site plan and project scope – Harlem River Houses

The Landmarks Preservation Commission (LPC) unanimously approved a comprehensive renovation of the historic property in 2021 after NYCHA transferred management to a private development group. Described as a joint venture, the group includes Settlement Housing Fund and West Harlem Group Assistance.

The rehabilitation project is expected to begin this spring and will include upgrades to apartments, common areas, elevators, campus security, and heating systems. Upgrades in units will include new kitchens, bathrooms, floors, and appliances, along with updates to windows and building exteriors.

Sidewalks, gardens, and sculptures within the property grounds will be also restored and new playgrounds, benches, and activity spaces will be installed. Additionally, all electrical, mechanical, and plumbing systems will be renovated or replaced.

“There is a dire need for affordable housing in our country, only exacerbated in the New York market where over half a million people rely on the stability of public housing every year,” said Mathew Wambua, vice chairman and head of Merchants Capital’s New York office. “Preserving these critical projects not only ensures residents’ continued safety but allows them to live in dignity.”

Rendering of façade upgrades – Harlem River Houses

Rendering of new storefront signage – Harlem River Houses

Rendering of new storefront signage – Harlem River Houses

Merchants Capital’s provision of financing to the joint venture was structured as a straight-to-permanent New York City Housing Development Corporation (NYCHDC) Freddie Mac Risk Share loan.

To date, Merchants has provided nearly $480 million in financing toward more than 3,300 units as part of the NYCHA PACT projects throughout New York City.

“I am proud of our company’s commitment to being a partner in the revitalization of public housing in New York, serving a vital role as the financier for many famed and historical properties in our community,” Wambua said.

Renovations at Harlem River Houses is expected to be completed between 2024 and 2025. The design team includes Curtis + Ginsberg Architects, preservation experts Higgins Quasebarth & Partners, landscape consultants NV5, and Rand Engineering & Architecture’s façades group.

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