Hanover Capital Supplies $26M to Advance One45 for Harlem Development

A controversial affordable housing project in Harlem is inching closer to construction after closing of a new round of pre-development financing, Commercial Observer has learned.

A joint venture between developer Bruce Teitelbaum and Steven Neuman of Coltown Properties has secured $26 million in bridge financing to advance One45 for Harlem, a $600 million residential project that is expected to bring 1,000 new housing units to Harlem in New York City. 

Hanover Capital NY provided the $26 million bridge loan that will now enable the sponsorship group to refinance an existing $20 million loan with ConnectOne Bank. 

Filler Capital’s Isaac Filler, Steven Edelstein, and Yossi Koschitzki arranged the financing. 

“It was an honor to pair a best-in-class sponsor with a top-tier lender that understands the nuances of NYC development,” said Isaac Filler, founder of Filler Capital.

Nir Mor, managing principal and founder of Hanover Capital NY, told CO that the refinancing will give the development team the runway capital needed to push the project into its new pre-construction phase over the next six to 12 months. 

Mor described the project as “transformational,” and emphasized how excited his firm is to finance a development that will add 1,000 units, including more than 300 affordable housing units, to Manhattan’s undersupplied market.  

“As a firm born and bred in New York, we know this city inside and out and are deeply committed to backing projects that strengthen its future,” he said. “This development will bring much-needed housing to the city, a mission we’re proud to champion through our lending platform.”

Situated at the intersection of West 145th Street and Lenox Avenue, One45 has been mired by controversy since its inception several years ago. It recently received approval in the New York City Council for rezoning over the summer. 

CO reported in June that the project was brought back to life upon the election of Yusef Salaam, who now represents the Upper Harlem district on the City Council, and the support of City Council Speaker Adrienne Adams. The project hit a standstill in 2022 when Councilmember Kristin Richardson Jordan strongly objected to the development and Teitelbaum withdrew his application for the project prior to a council vote. 

But thanks to the financing from Hanover Capital and others, One45 for Harlem is now moving along and is expected to bring three buildings to the neighborhood, along with 338 affordable housing units to a larger, mixed-use, market-rate development. 

CO previously reported the project will include an $8.8 million renovation of the Brigadier General Charles Young Playground at West 145th Street and Malcolm X Boulevard, as well a new 23,000-square-foot technology center with community rooms; 30,000 square feet of commercial, retail and community space; and various job training, apprenticeship, and internship programs.

Brian Pascus can be reached at bpascus@commericalobserver.com.