Ar-Rahman Foundation Inc., established in June 1992 under New York's Not-For-Profit Corporation Laws, began its journey by privately holding congregational Jumuah prayers in the late 1980s. Initially renting various venues, the Foundation purchased its premises at 13 & 15 West 29th Street, New York, NY, in 2020. These buildings, encompassing 15,000 sqft, house residential and commercial units and have the potential for expansion through 35,000 sqft of unused air rights. However, due to structural limitations, any expansion would require demolishing the existing buildings, a project deemed financially prohibitive.
Since its inception, the Foundation has conducted daily prayers, religious seminars, and Ramadan Iftaar services, which have grown significantly in attendance. The current facilities are now insufficient, forcing the congregation to consider relocation. In 2018, a local developer offered to purchase the Foundation’s air rights, promising a new building in exchange. Unfortunately, the developer went bankrupt in 2020, stalling the project.
In 2022, negotiations resumed with the lender who foreclosed on the developer’s assets, culminating in an agreement to sell the Foundation's properties for $43 million—well above their appraised value of $17 million. The Foundation planned to relocate to a 150,000 sqft building at 229 W. 36th Street, New York, NY, purchased for $35 million. This new facility would include a Halal food court, office space, a masjid, and a hostel. However, the buyer for the 29th Street property has withdrawn, citing financial difficulties due to delays in transaction approval by the NY Attorney General’s Office.
Despite this setback, the Foundation remains committed to purchasing the 36th Street property and is exploring alternative plans, including maintaining the current premises. The new building's purchase is at a favorable price of $233 per sqft, significantly below market averages, and renovation costs are estimated at $7 million. The Foundation has secured a soft commitment from a local developer to fund the renovation, with repayment contingent on future cash flow generation. To proceed, an equity injection of $18 million is required
