January 6, 2021
Related Fund Management has acquired 265 – 275 Cherry St., two 26-story Section 8 affordable towers with 490 units in the Two Bridges neighborhood on Manhattan’s Lower East Side. Although financial terms weren’t disclosed, Crain’s New York Business reported the acquisition price as $424 million.
CIM Group sold the approximately 450,560-rentable-square-foot property with L+M Development Partners, its joint venture partner. The land parcel at 260 Cherry St. wasn’t included in the sale.
265 – 275 Cherry St. is a fully-leased community originally built in 1979, featuring one-, two-, and three-bedroom units. In 2014, L+M and CIM voluntarily entered into a 40-year regulatory agreement to preserve the asset as affordable housing for low-income households.
For its part, Related has committed to maintaining and operating the two buildings as high-quality affordable housing.
Cushman & Wakefield’s Doug Harmon and Adam Spies brokered the sale, while Gideon Gil and Lauren Kaufman secured acquisition financing.
Photo courtesy of En-Power Group.
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