New York & Tri-State + Apartments | January 6, 2021

Related Pays Reported $424M for Section 8 Towers

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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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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