Project:
119th Street owner-occupied investments acquisition
and renovation

Client:
Private investor

Location:
119th Street and Lenox Avenue

Investment Period:
2001 - Long Term

In 1999, Harlem Lofts, Inc. began to research the Harlem area for a private investor (now the owner) and the special rules that apply to obtaining properties in Harlem. This was before Harlem was accepted by novice investors. The team at Harlem Lofts, Inc. was new to the area at the time, so it took 15 months to find the perfect building located in The Mount Morris Historic District at 119th and Lenox Avenue.

Location was most important for these early investors. The Mt. Morris area is well-known for its 19th century Dutch architecture and its proximity to Central Park, Morningside Park, and Mount Morris Park. For the past 40 years, this brownstone was a distressed SRO but maintained all of its original detail. This project consisted of a total gut renovation of the building's systems, but all architecture and historical details were preserved. As of October, 2002, the building became a three-family dwelling, with two luxury rentals. The rental units covered the mortgage, so the owner could profit from the third unit or live in a New York apartment at no cost.

Significant challenges for this project:

1. The investment community had not accepted Harlem as a valid investment at that time.
2. Obtaining a Certificate of Non-Harassment from The New York City Housing Preservation and Development office in order to get a building permit.
3. Changing the building's legal usage from a Single Room Occupancy (SRO) to a three-family dwelling.
4. Navigating uncharted territories in an area new to gentrification.
5. Purchasing the property from an estate.

Unique features about this project:

1. Maintaining ornamental plaster ceilings and details throughout.
2. Refinishing original claw foot tubs from the late 1800's .
3. Building out the cellar as an additional living space with maximum ceiling height.
4. Heating the tile floors, installing central air conditioning in all units, as well as stone counters, stainless appliances, and gas fireplaces.
5. Creating multiple outside areas.
6. Providing the owner/investor with the ability to live in a 2600-square foot apartment while the rental units cover mortgage and expenses.