If you don't see images, click here to view
Story Ideas  Events 
To ensure delivery, please add newsletter@bisnow.com to your address book, learn how
Real Estate Bisnow
LegalReal EstateTechAssociationWomenMedicalThe Scene
December 18, 2008


Hey, if you can’t get Giants tix, you fans of college football should hop down to DC this Saturday for the first bowl game ever held in the Nation’s Capital, and the first bowl game of the post-college season. Navy v. Wake Forest. Please see ad to right!


While many investors are sitting on the sidelines, Tahl Propp Equities’ Rodney Propp and Joe Tahl are veering full-speed ahead, raising their sixth fund, valued at $500M, to capitalize on the collapse of the Manhattan market, the duo told us in their Park Avenue offices.


Their firm was built from what they learned in the downturn of the early ‘90s; Rodney was at Drexel Burnam and Joe at Trump, where they deconstructed and rebuilt transactions. After forming their partnership in ‘97, they were one of the first (and now largest) investors in the Harlem market, buying elevator apartment buildings with land near Central Park for $30 PSF. Their $300M of total low-leverage investment over the past decade has yielded over 3,000 apartment and condo units, as well as 66 retail stores—and they expect more than $1B in returns over the next 10 years.


Operators who followed them, they say, took out pro-forma loans based on projected income that never materialized, and now those loans are in default. This will create more opportunities for the firm, which plans on investing the fund through 2011 to buy buildings and loans in both Harlem and other Manhattan locations.


In the meantime, Joe and Rodney are biding time in Harlem, waiting on approvals of two affordable housing complexes totaling 700k SF in East Harlem, as well as renewing HUD contracts on 2k apartment units to ensure that lower to middle-income residents can still afford the market. With JV partner RFR Realty, they’re also in the late architectural and flag-negotiating stages for the first luxury hotel to be built on Fifth Avenue (at 520 Fifth, pictured) in over a century. When not working, the doting dads keep busy, each with three kids under the age of six.


Jonathan Rose Cos. is certainly busy in Harlem: last month, it broke ground on its $66M, 12-story, 185-unit mixed-income residential Tapestry development at 245 East 124th St. with Lettire Construction; and this week, it’s closing on a 114-unit affordable housing community (including units for ex-offenders re-entering society) at 625 W. 140th St. in partnership with the Fortune Society. We were intrigued, considering we’ve heard that the emerging market has been affected by the economy with some projects not getting off the ground. We visited Paul Freitag, JRCo’s New York City director of development, to find out more about its Harlem plans.


Projects that are solid will still move ahead, he says; Tapestry, for one, has both public and financer support as a mixed-income and LEED-Silver designed building. The project is also a part of the 125th Street River to River Rezoning, a multi-city agency effort to bring more cultural, retail and entertainment uses to the area. Additionally, a great deal of retail sprouting along 125th supports the residential development; the project itself will have 8k SF of premium ground retail space. The project will have 50% market-rate units, 30% middle-income units, and 20% low-income units after its 18-month build-out.


Paul with colleagues Roger Gore and Kendra Stensven, both part of the Tapestry team.  The firm is no stranger to Harlem; it built the $18M, 85-unit Dinkins Garden affordable housing and youth center at 263 W. 153rd St. with Harlem Congregations for Community Improvement (HCCI). It also hopes to break ground this spring on a 65-unit senior housing facility in an HCCI JV at 203 W. 146th St. While busy in Harlem, Paul recently served as a juror for the Terner Prize, a national affordable housing award, and said it’s inspiring to see how developers are rapidly redefining the look of affordable housing. (Last year, JRCo was a finalist by turning an old 19th-century masonry building in Irvington, NY into affordable housing and a town library.)

Eagle Bank
Leo A Daly
Arent Fox
CONTACT EDITORIAL                             CONTACT ADVERTISING                              CONTACT GENERAL INFO

This newsletter is a journalistic news source which accepts no payment for featured interviews. It is supported by conventional advertisers clearly identified in the right hand column. You have been selected to receive it either through prior contact or professional association. If you have received it in error, please accept our apologies and unsubscribe at bottom of the newsletter. ? 2008, Bisnow on Business, Inc., 1323 Connecticut Avenue, NW Washington, DC 20036. All rights reserved.

Real Estate Bisnow Sent Using iContact