Related Acquires Manhattan Affordable Housing for $424M
The Section 8 community and its 490 units in Manhattan’s Lower East Side are fully leased.
Likely to be one of New York City’s largest multifamily transactions of the year, Related Cos. has acquired a two-building affordable housing community in Manhattan’s Two Bridges neighborhood for $424 million, according to sources.
After having owned 265-275 Cherry St. for seven years, the joint venture between CIM Group and L+M Development Partners sold the affordable community. The approximately 450,560-square-foot community offers 490 units of one-, two- and three-bedroom apartments split between two 26-story towers. Built in 1979, the community’s amenities include a community room, convenience store and outdoor courtyards with playgrounds.
Cushman & Wakefield represented both Related and the joint venture of CIM and L+M in the transaction. The nearby land parcel at 260 Cherry St. was not included in the sale, according to CIM.
CIM first acquired 265-275 Cherry St. with its joint venture partner L+M in December 2013 from Starrett for $279 million, according to Yardi Matrix data. Shortly after, CIM and L+M voluntarily entered into a 40-year regulatory agreement to preserve the community as affordable housing. Now under new ownership, Related will continue maintaining the property as Section 8 affordable housing.
LONGSTANDING AFFORDABLE PORTFOLIO
The major acquisition of 265-275 Cherry St. will add to Related’s portfolio of more than 55,000 affordable properties across the U.S. While the company got its start as an affordable housing developer in 1972, Related has since expanded to large private developments in addition to its continuing work with affordable and workforce housing.
Within New York City, Related has worked on a number of affordable housing projects, recently topping out a fully affordable 340-unit community in New York City’s Roosevelt Island in August 2019. Related also sold a 252-unit affordable housing community in the Bronx to Prana Investments in July 2019 for $36 million.