Philip A. Payton Jr. was an influential Black real estate entrepreneur, often called the “Father of Harlem.” His efforts were pivotal in transforming Harlem into a thriving Black community.
Early Life and Career
Philip was born on February 27, 1876, to Philip and Annie (Ryans) Payton in Westfield, Massachusetts, the second of four children. His father was a successful, well-known local barber, and, insisting that his children learn a trade, began training Philip after school. Payton claimed to be a full-fledged barber by the age of 15. He attended Livingstone College in North Carolina, and upon graduation, returned home to work in the family business. However, he decided he wanted to make more of himself and, in April 1899, moved to New York City.
He took on various jobs, eventually working as a janitor in a real estate office. It was here that he became inspired to enter the real estate business. In 1900, he and a friend opened the Brown and Payton Real Estate firm. Though the partnership dissolved after a year, Payton continued alone, aiming to provide quality housing for Black families. Despite facing significant hardships, including financial struggles and evictions, Payton persevered.
The Rise of Black Harlem
In 1905, Payton founded the Afro-American Realty Company with capital provided by Black investors. His strategic goal was to create a supportive Black community by providing housing in Harlem, an area whose residents were predominantly white. The corporations’ directors issued a prospectus seeking contributions from African Americans – it stated that the Company intended to practice “race economics” to attack racial barriers. Black investors who could, responded to the call. The Company ultimately had a capitalization of more than $1 million, making it one of the largest Black-owned enterprises in the country at the time.
Fully backed by the black business community, the Afro-American Realty Company, with Payton as its chief executive, began buying buildings in Harlem, sometimes through white agents. A New York Times article of December 8, 1904 entitled “Race War Breaks Out in Harlem Real Estate” and another on December 17, 1905 “Race War Started In Harlem” both described its operations and the anxiety that its activities brought to many white Harlem residents.
It’s estimated that within three years the corporation owned more than 25 buildings and had more than 1,500 tenants under management. In the 1907 report of the National Negro Business League, in its coverage of the Afro-American Realty Company they noted that Payton was one of the most prominent black businessmen in the nation.
One of his most notable dealings involved a conflict with the Hudson Realty Company. They were buying buildings in Harlem along 135th Street and Lenox Avenue when one day they approached him with an offer to buy out his leases for an extremely high price, which he accepted. However, his excitement was short-lived upon learning that the Hudson Realty Company was the agent for the Owners’ Protective Association of Harlem, whose purpose was to evict his new Black tenants. They sought deeds and leases on buildings in Harlem stipulating that they could not be rented or sold to anyone who was Black.
In retaliation, Payton successfully purchased adjacent buildings and evicted white tenants, replacing them with Black tenants. This act, part of what was called the “Real Estate Race War,” marked a significant shift in Harlem’s demographics, with white tenants ultimately fleeing and the Owners’ Protective Association of Harlem selling the buildings back to Payton at a loss.
Unfortunately, their success was short lived. In 1906, the Afro-American Realty Company ran into trouble as the New York real estate market experienced a recession. The company became over extended financially and faced default on its obligations. It failed, and many who had invested with such high hopes lost their money. White lenders repossessed its properties and lawsuits accused Payton of mismanagement and fraud. Payton was arrested in January 1907 for civil fraud. Later that year, the judge ruled in favor of the plaintiffs for investments, damages, and legal costs. The company issued its one and only dividend in June 1907, but never recovered from the negative publicity of the lawsuit. Consequently, they ceased operations in 1908.
However, the Afro-American Realty Company was not a complete failure. As a result of its efforts, the barriers of racial discrimination in housing had been breached and there was no turning back. Payton’s efforts to settle Black people in Harlem were continued by other Black realtors such as John E. Nail and Henry G. Park, former directors of the Afro-American Realty Company and affiliated with wealthier Black churches such as St. Philip’s Episcopal Church and the Abyssinian Baptist Church. In 1911, one of these churches purchased a row of previously all-white residences on 135th Street for a very high price (known as the “million-dollar houses”). With this purchase, the Harlem Protective Owners Association collapsed. The area north of 125th Street swiftly became a predominantly Black community.
Legacy and Influence
After the Afro-American Realty Company’s collapse, Payton continued to influence Harlem’s development, opening a new business operating under the name of Philip A. Payton & Co., and in 1917, closed on a $1.5 million deal for six apartment houses. The buildings were renamed in honor of Black heroes: Crispus Attucks, Toussaint L’Ouverture, Phyllis Wheatley, Paul Laurence Dunbar, Frederick Douglass, and Booker T. Washington. Payton died several weeks later of liver cancer at the age of 41.
His efforts were instrumental in promoting Black social and economic progress in Harlem and laid the foundation for the Harlem Renaissance, a cultural and intellectual movement that celebrated Black culture and contributed to the broader civil rights movement. During the Harlem Renaissance, the neighborhood would become the intellectual and political capital of Black America.
Philip A. Payton Jr.’s name is rarely remembered today. There is no monument or plaque to recognize his contributions in Harlem. There is no plaque marking the “million-dollar houses” on 135th Street, the purchase of which was so critical in the defeat of the efforts of the Owners’ Protective Association of Harlem to keep the area segregated. Yet his vision paved the way for future generations, and his legacy as the “Father of Harlem” endures in the vibrant, historically significant community he helped build.
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