L+M and Nelson Management plan to make significant capital improvements to the property to reposition the building while preserving it as a source of high-quality mixed-income housing.

L+M has been involved in the Lower East Side neighborhood for more than three decades, most notably through the ongoing development of Essex Crossing, amixed-use project set to rise on nine city-owned sites that were first marked for development in 1965. Other L+M properties in the area include 265-275 Cherry St.—adjacent to the firm's newest acquisition—which features 490 apartment units and was bought in 2013 with CIM Group.

“The Lower East Side has experienced tremendous growth over the last decade and has transformed into one of the Manhattan's most sought after neighborhoods,” adds Robert Nelson, president, Nelson Management Group. “257-271 South St. represents an opportunity for Nelson Management and L+M to help expand the diversity of housing options available in the area and preserve an institutionally-maintained asset.”

Adds Richard Gerwitz, co-head of Citi Community Capital, “257-271 South St. fits squarely into the Mayor's housing plan and our investment strategy of helping preserve a range of affordable housing options in communities throughout New York City.”

Located within a ten-minute walk of 257-271 South Street is Essex Crossing, a 1.9-million square foot mixed-use project that includes residential, office, retail and community space. L+M it is co-developing Essex Crossing with Taconic Investment Partners and BFC Partners.