NYCEDC Issues Request for Proposals (RFP) to Redevelop East 125th Street Site into New Housing Project in East Harlem

“B-East,” Located on Second Avenue Between East 125th and East 126th Streets, Will be Redeveloped to Include High-Quality, Mixed-Income Housing and Community-Serving Uses

Projects Will Deliver on Mamdani Administration’s Land Inventory Fast Track (LIFT) Initiative and Builds on Block-By-Block Housing Plan

NEW YORK, NY—New York City Economic Development Corporation (NYCEDC) today announced the release of a Request for Proposals (RFP) for the disposition and development of a mixed-use residential building on land owned by the City of New York known as “B-East” located on Second Avenue between East 125th and East 126th Street. The currently vacant site presents a significant opportunity to deliver mixed-income housing, neighborhood-serving retail, and other community uses for East Harlem. The B-East site is an integral part of the East 125th Street Development project approved in 2008 and it is estimated that this redeveloped site can deliver 140 housing units.

The redevelopment of B-East will deliver on Mayor Mamdani’s Land Inventory Fast Track (LIFT), which aims to speed the delivery of affordable housing on City-owned land and builds on the Block by Block: The Housing Plan for a New Era, a sweeping blueprint to tackle New York City’s deepening housing crisis with the urgency and scale the moment demands.

“The redevelopment of the ‘B-East’ site continues the work of our LIFT Task Force to create much-needed housing on City land, together with good jobs, retail and community space that will strengthen the surrounding neighborhood as well,” said Deputy Mayor for Housing & Planning Leila Bozorg. “Thanks to the EDC team that has been advancing this RFP and the leadership of Council Member Encarnacion, this site will soon have 140 new homes for New Yorkers.”

“East Harlem families are facing the same affordability crunch as the rest of the city, and this site has sat vacant for too long while the need for housing has only grown,” said Deputy Mayor for Economic Justice Julie Su. “This RFP puts city-owned land to work for the people who live here, with mixed-income units, local hiring requirements, and a strong M/WBE participation goal built in from the start. That's what it looks like to use the tools of city government to make this city more affordable.”

“The redevelopment of this site will deliver much-needed housing to East Harlem while bringing additional amenities like retail space and community use which has the potential to be completed in record time,” said NYCEDC Interim President & CEO Jeanny Pak. “We continue to make progress in addressing the City’s housing crisis and look forward to working with our agency partners and the East Harlem community in delivering a project that will improve the lives of residents. NYCEDC continues to invest in the East Harlem community, and this project will be another key asset for the community for decades.”

“B-East shows what can be achieved when we see the potential in every piece of city-owned land. A vacant lot will become around 140 homes, creating new housing opportunities for East Harlem while bringing investment, jobs, and long-term benefits to the community,” said HPD Commissioner Dina Levy. “The need for more housing is urgent, and we are all focused on moving faster to meet that need. Through the Block-by-Block plan and Land Inventory Fast Track, we are unlocking new opportunities, accelerating the development process, and delivering on our commitment to build 200,000 affordable homes.”

The RFP seeks to accomplish the following goals:

• Deliver a financially feasible, high-quality, residential development that generates mixed-income housing, including affordable housing pursuant to 485-x, without public subsidy;
• Maximize the site’s development potential in compliance with applicable site zoning;
• Provide an active ground floor that complies with the Local Business Requirement in the East 125th Street Development Points of Agreement (POA) and provides other community-serving uses;
• Advance sustainability, energy efficiency, carbon neutrality, and climate resiliency goals;
• Deliver an appealing, livable, and attractive building which enhances the built environment of East Harlem;
• Implement a comprehensive hiring and wage program that seeks to support local communities and create job opportunities, including for more economically disadvantaged candidates; and
• Meet or exceed a 30 percent M/WBE participation goal, or an equivalent economic justice standard.

“For nearly two decades, this site on Second Avenue sat vacant, even though it already had the approvals needed to move forward. At a time when New Yorkers are desperate for more affordable housing, we simply can’t afford to let shovel-ready projects gather dust,” said Manhattan Borough President Brad Hoylman-Sigal. “I’m grateful to Mayor Mamdani, NYCEDC Interim President & CEO Jeanny Pak, and HPD for getting this long-stalled site back on track and transforming it into 140 much-needed affordable homes for East Harlem. Thank you as well to Council Member Elsie Encarnacion and Community Board 11 for helping make this project a reality.”

“The redevelopment of the B-East site is more than just more housing. It means 140 affordable homes for working families, retail space that keeps dollars in our community, and good jobs for our neighbors during construction and beyond,” said Council Member Elsie Encarnacion. “And it means a notoriously underused lot can go from a reminder of city neglect to a marker of what public investment can do for our community. I'm proud to support this project and will keep fighting to make sure East Harlem residents see the direct benefits of this development.”

The East 125th Street Development is a project led by NYCEDC in conjunction with the New York City Department of Housing Preservation and Development (HPD). It includes three parcels situated on approximately six acres in East Harlem, from East 127th Street to East 125th Street, and from Third Avenue to Second Avenue. The project, as originally proposed, was intended to include approximately 1.7 million square feet of new residential, retail and commercial uses and is intended to promote local economic growth and job creation, encourage private investment, and improve quality of life for East Harlem residents. To date, HPD and NYCEDC have delivered over 450 housing units representing substantial progress toward more than 1,000 approved units overall and more anticipated on the remaining sites, and 121,000 square feet of healthcare facility at the Proton Center.

In addition to the B-East RFP, NYCEDC, HPD, the New York City Department of Education, and the New York City School Construction Authority recently presented plans to the local community board (CB11) for the re-imagined development parcels on the A-Block: “A-West,” a 7,000 SF parcel on 3rd Avenue between East 126th and East 127th Streets; and “A-East,” a one-acre parcel on 2nd Avenue between East 126th and East 127th Streets. These developments are expected to include more than 1,000 new units of housing of which 40% are anticipated to be affordable housing. The project also aims to deliver two new public schools in the A-East site.

For more information about the B-East RFP, visit the NYCEDC RFP webpage. NYCEDC will facilitate an optional site visit that will take place at 10 am on Tuesday, August 18, 2026, and must RSVP by Friday, August 14, 2026. Responses to the RFP are due by 5 pm ET on Tuesday, October 20, 2026.

About NYCEDC
New York City Economic Development Corporation is a mission-driven, nonprofit organization that works for a vibrant, inclusive, and globally competitive economy for all New Yorkers. We take a comprehensive approach, through four main strategies: strengthen confidence in NYC as a great place to do business; grow innovative sectors with a focus on equity; build neighborhoods as places to live, learn, work, and play; and deliver sustainable infrastructure for communities and the city's future economy. To learn more about what we do, visit us on Facebook, X, LinkedIn, and Instagram.