JP Morgan-Led Group Seeks $175M for Lower East Side Apartment Building
The partners have chipped in $20 million for renovations.
JP Morgan and its partners L+M Fund Management and Nelson Management are looking to cash in for roughly $175 million on a Lower East Side apartment building in Manhattan, according to a report from The Real Deal, citing an offering memo.
The property, called 275 South Street, was bought by the group in 2015 for $115 million. The trio has invested more than $20 million in renovations. Roughly 40 percent of the building’s 256 units are covered by New York’s Section 8 program, which provides assistance for low-income households. Also, approximately 85 percent of the apartment units are priced at marketing rates.
Amenities at 275 South include a 24-hour doorman, a residential lounge, a fitness center, a laundry room, a chef’s kitchen, and parking.
As JP Morgan and its partners look to sell 275 South, other major commercial multifamily deals have gone down in NYC recently. This includes a joint venture led by Canvas Property Group buying a Gramercy Park apartment complex for $104.5 million. Also, Atlas Capital Group struck a $203 million acquisition deal for a 365-unit tower in Brooklyn. Most notably, boxing legend Floyd Mayweather Jr. has made the city’s second biggest multifamily purchase in 2024 with a recent $402 million portfolio in Manhattan, which covers 1,000 affordable housing units.
While high supply has remained a headache for many multifamily operators, New York in July remained the top market in the country for starts, with 30,618 units permitted, according to RealPage of U.S. Census Bureau and Department of Housing and Urban Development data. That’s up 20 percent from the same month last year and more than five percent from June. Meanwhile, the national number for multifamily starts was down 21.8 percent from July 2023, but up 11.7 percent compared with the previous month.