Scale Supplies $45M Construction Loan for Harlem Condos

Mass Development has landed $45 million of construction financing to build a condominium building in Harlem, Commercial Observer has learned.

SCALE Lending, a subsidiary of Slate Property Group, provided the 30-month, floating-rate loan with two six-month extension options for the developer’s 11-story condo complex at 264-272 West 135th Street. Mass Development acquired the site — which previously housed two low-rise retail buildings —  for $9.3 million last year from Rabina, Crain’s New York Business reported at the time. 

“Harlem is one of the most supply-constrained condo markets in New York City, with no new project of comparable scale or quality delivered in years, and the pipeline remaining effectively empty,” Martin Nussbaum, co-founder and principal of Slate Property Group, said in a statement. “That level of scarcity creates a rare and compelling opportunity.”

Arrow Real Estate Advisors negotiated the debt with a team led by Morris Betesh, Omar Ferreira, Brandon Serota and Will Farrell.

Serota, director at Arrow, said in a statement that the financing structure from the deal helped keep the “sponsor’s business plan and construction timeline intact and that the project will contribute to “Harlem’s continued growth.”

The 264-272 West 135th project, which is slated for completion in summer 2028, will feature 72 condos ranging from studios to three-bedroom units. The top floor of the building will feature amenities such as a fitness center,  a lounge, a spa, a kids playroom and a movie room. 

The first two floors of the property will consist of the lobby, 12,000 square feet of retail and a 15,000-square-foot community space, which has already been leased to an undisclosed day care operator. The site is just off Frederick Douglass Boulevard, about a block and a half east of St. Nicholas Park. 

“This project represents another important step in the continued transformation of West Harlem into one of New York City’s most desirable residential neighborhoods,” Slavik Shimonov, managing member of Mass Development, said in a statement. “West Harlem has evolved into a destination for professionals, families, and investors seeking exceptional access to Manhattan, vibrant cultural institutions, and modern living, and this development reflects our confidence in the community’s future.”

Andrew Coen can be reached at acoen@commercialobserver.com.