L+M Bags Lower East Side Apartments
- Feb 11, 2015
New York—L+M Development Partners and Nelson Management Group Ltd. have acquired 257-271 South Street, a 19-story residential property in Manhattan’s Lower East Side. L+M acquired the property through the NYAH Preservation Fund, and in conjunction with Nelson Management Group’s Global One Real Estate Fund.
NYAH is a joint real estate private equity platform with Citi Community Capital, which invests in multifamily housing in the New York City metro area, while the Global One Real Estate Fund invests in existing value-add and core-plus multifamily properties in the city. Citi Community Capital provided debt financing for the deal.
The property features 24-hour security, balconies with views of the East River, an outdoor plaza, laundry facilities and a gym. It’s within walking distance of subway and bus transportation, and the surrounding area includes green space and various popular attractions, such as the East River Esplanade, the South Street Seaport, and Chinatown.
L+M and Nelson Management plan to make capital improvements to reposition the building, including common-area upgrades, enhanced amenities and apartment renovations, while preserving it as a source of mixed-income housing in the Lower East Side. 257-271 South Street is L+M’s third joint venture with Nelson Management and Global One Investments.
The Lower East Side has attracted significant investment in recent years. Located near 257-271 South Street is Essex Crossing, a 1.87 million-square-foot mixed-use project that includes residential, office, and retail space that L+M it is co-developing Essex Crossing with Taconic Investment Partners and BFC Partners.