Commercial Real Estate & Real Estate Fast Track (REFT)

At a Glance 

The Upper Manhattan Empowerment Zone Development Corporation (UMEZ) provides construction loan capital for real estate projects for up to $10 million to projects that provide new job creation and substantial economic growth in Upper Manhattan. We are typically a subordinate loan that augments (or “gap funds”) the amount of private capital to create a stronger capital structure for the project.

The Real Estate Fast Track (REFT) loan program provides up to $500,000 to emerging developers that are either lead or co‐lead developers of local real estate projects with capital to finance a portion of the pre-development costs associated with these projects. This loan program is part of UMEZ’s overall efforts to foster and promote small business economic development and job creation opportunities within the Upper Manhattan community.

Real Estate Fast Track Program (REFT)

Loan size: Up to $500,000

Loan term: Two years. Terms longer than 2 years or requests for loan extension to an existing loan will be considered at the discretion of UMEZ

Pricing: Loans will be set at closing and based on interest rate of 1-month LIBOR + 5.00% per annum

Uses: Predevelopment Costs

Key Requirements (REFT):

• Be a New York State business or have authority to do business in New York State

• Have site control and be the lead or co-developer for a real estate project located in Upper Manhattan, defined as north of 98th Street on the east side of Fifth Avenue; and north of 110th Street on the west side

• Have development plans for a real estate project that is at least $10 million

Additional Considered Factors for the REFT Program:

• Demonstrate prior development experience completing a project(s) in New York City

• Maintain a primary place of business in Upper Manhattan, as defined by UMEZ

• Minimum of five (5) years at the time of the loan application

• Be a New York State or New York City certified minority/women-owned business enterprise (M/WBE)

• Have annual consolidated gross revenues of $5 million or less, and consolidated balance sheet equity of less than $5 million

• Be an entity engaged in the trade of business, whose majority owners have been residents of Upper Manhattan for the past three (3) years

Real Estate Loan Approval Process

The process begins with a discussion with a UMEZ lending officer. This loan program is part of UMEZ’s overall efforts to foster and promote small business economic development and job creation opportunities within the Upper Manhattan community. After the initial consultation with a UMEZ lending officer, we will provide detailed information on the entire loan process.

REFT Approval Process

The process begins with a discussion with a lending officer. These are real estate secured loans for large commercial development projects that can serve as catalysts for job creation and transform the physical landscape of our community. After the initial consultation with a UMEZ lending officer, we will provide detailed information on the entire REFT process.

VICTORIA THEATER

UMEZ closed on a $10 million loan in 2015 to finance the redevelopment of the decommissioned Victoria Theater. The Victoria Tower will replace the legendary theater, neighboring the Apollo Theater on 125th Street. The development is expected to create significant benefits for Upper Manhattan, including the creation of approximately 575 construction jobs and 373 full-time positions. The project will have a significant impact on unemployment in the area, since many of the permanent positions are introductory jobs that will enable local residents to enter the workforce. An additional benefit of the project is the creation of 95 affordable housing residential rental units.

GEORGE WASHINGTON BRIDGE BUS TERMINAL

UMEZ announced that developers closed on a $5 million loan to assist with financing the commercial renovation of the George Washington Bridge Bus Terminal in 2018. The $108 million renovation of the commercial space was led by experienced developers, SJM and Slayton Ventures, to modernize the bus facilities and create over  prime retail space for both local businesses and large retailers. The renovation will benefit the area from increased economic activity because of the accessibility improvements and expanded retail offering.

HARLEM USA

Harlem USA is a 275,000 square foot shopping complex at 125th Street and 8th Avenue. The Harlem USA project was financed by a combination of public and private investment, including a $11.2 million loan from UMEZ. The complex contains the Magic Johnson Theatres, New York Sports Club, and Old Navy among other retailers. Construction on the shopping complex generated 200 jobs with another 500 permanent jobs created for community residents. Harlem USA helped increase the area’s visibility and enhance business activity in the community through increased foot traffic.

EAST RIVER PLAZA

UMEZ provided a $15 million loan and $40 million in Empowerment Zone Bonds to East River Plaza. East River Plaza was the first big-box retail center with storefront parking in Manhattan. East River Plaza is located in East Harlem and encompasses approximately 6.2 acres along FDR Drive between 116th and 119th Streets. The 1.2 million square foot development includes roughly 482,000 square feet of retail space on 5 floors, a parking facility, and a small office building. The project created 1,200 permanent full-time jobs and 1,000 construction jobs.