L+M, Invesco Partner for $1.2B NYC Housing Deal
- Jul 31, 2019
L+M Development Partners and Invesco Real Estate have teamed up to buy more than 2,800 market-rate Manhattan apartments in a $1.2 billion deal that will restore the affordability of most of the units. The companies agreed to purchase the portfolio of five developments totaling 2.2 million square feet from Urban American and Brookfield Asset Management.
The developments, built between 1975 and 1980, exited the Mitchell-Lama affordable housing program in 2005. L+M and Invesco plan to work with city and state authorities to enact regulatory agreements that will secure long-term protections for residents and enable the buyers to return more than 1,800 of the units to long-term regulation.
The landmark transaction was funded through the L+M Workforce Housing Fund, a vehicle dedicated to making social impact investments in the affordable and workforce housing sector primarily in the New York City metro area. L+M raised approximately $500 million through the fund, which wrapped up fundraising this year.
Buyers to work with city, state
The properties in the portfolio include four in East Harlem:
- River Crossing at 1956 First Ave. (761 units)
- The Heritage at 1295 Fifth Ave. (600 units)
- The Miles at 1990 Lexington Ave. (341 units)
- The Parker at 1890 Lexington Ave. (64 units)
And a community on Roosevelt Island:
- Roosevelt Landings at 552 Main St. (1,003 units)
The buyers plan to work with the New York City Department of Housing Preservation & Development (HPD) to drive the regulatory agreement for the Harlem properties and will work with New York State Homes & Community Renewal (HCR) to do the same for the Roosevelt Island property, which falls under the state’s purview.