Lakshmi Capital Opportunity Zone Fund 1 LLC Acquires Development Site in East Harlem for $7.1M

Lakshmi Capital Opportunity Zone Fund 1 LLC has acquired a development site in East Harlem for 7.1 million. The property, located at 2031-2033 3rd Avenue, spans 43,875 square feet, with a price per buildable square foot of 161. The site is one of only 10 MIH-designated development sites to have sold in East Harlem since the neighborhood’s rezoning passed in 2017. The rezoning allows for the construction of taller buildings and incentivizes the creation of affordable housing through the Mandatory Inclusionary Housing (MIH) program.

The buyer, Lakshmi Capital Opportunity Zone Fund 1 LLC, is a real estate investment fund that focuses on Opportunity Zones, which are designated low-income areas where investors can receive tax benefits for investing in development projects. The seller of the property was not disclosed.

The brokers for the deal were Michael Tortorici, Mark Anderson, and Evan Hirsch of Ariel Property Advisors. According to Ariel Property Advisors, they have sold or put in contract over 575,000 buildable square feet of MIH development throughout New York City.

The East Harlem neighborhood has seen a surge in development activity since the rezoning, with several high-profile projects in the works. One notable project is the Sendero Verde development, a mixed-use development that will include 655 affordable housing units, a charter school, and community space. The development is being led by Jonathan Rose Companies and L+M Development Partners and is expected to be completed in 2024.

Overall, the acquisition of the development site by Lakshmi Capital Opportunity Zone Fund 1 LLC highlights the continued interest in East Harlem as a destination for development and investment, particularly in the affordable housing sector.