Morgan Stanley pays $56M to L+M Development Partners for commercial in Lower East Side

Morgan Stanley through the entity Nhnr Hold Co 29, LLC paid $56 million to L+M Development Partners through the entity Site 6 Commercial New Owner LLC for the commercial condo at 175 Delancey Street in Lower East Side, Manhattan. The expected use is cash flowing.
The deal closed on December 4, 2025 and was recorded on December 10, 2025. The property has 41,173 square feet of built space on the lower level, first floor, second floor and a small space on the third floor, according to a PincusCo analysis of city data. The sale price per built square foot is $1,360 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for L+M Development Partners was Adam Hellegers . The signatory for Morgan Stanley was David Gross . The contract date was October 23, 2025. Morgan Stanley was the lender prior to this sale.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Morgan Stanley had purchased any other properties and sold three properties in three transactions for a total of $487 million over the past 24 months.
The seller L+M Development Partners purchased 19 properties in six transactions for a total of $153.5 million and sold seven properties in four transactions for a total of $48.4 million over the same time period.

The property

The office condo in Lower East Side has 41,173 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 41,173 square feet. The city-designated market value for the property in 2022 is $12.7 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on October 25, 2017. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Lower East Side, The majority, or 51 percent of the 23.8 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 21 percent of the space. In sales, Lower East Side has 1.7 times the average sales volume among other neighborhoods with $507.4 million in sales volume in the last two years and is the 20th highest in Manhattan. For development, Lower East Side has had very little major development activity relative to other neighborhoods.It had 532,032 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the two commercial properties representing 180,090 square feet of the 180,090 square feet. The identified owner is New York City Housing Authority.
On the tax block, there was one new building construction project filed totaling 137,237 square feet. It is a 100-unit, 137,237 square-foot residential (R-2) building submitted by L+M Development Partners and filed by Lisa Gomez with plans filed September 11, 2014 and permitted January 29, 2016.

The majority, or 100 percent of the 180,090 square feet of built space are elevator buildings, with specialty buildings next occupying 0 percent of the space.

The seller

The PincusCo database currently indicates that L+M Development Partners owned at least 237 commercial properties with 22,919 residential units in New York City with 20,940,737 square feet and a city-determined market value of $2.1 billion. (Market value is typically about 50% of actual value.) The portfolio has $3.5 billion in debt, with top three lenders as NYC Housing Development Corporation, Wells Fargo, and NYS Housing Finance Agency respectively. Within the portfolio, the bulk, or 83 percent of the 20,940,737 square feet of built space are elevator properties, with walkup properties next occupying 14 percent of the space. The bulk, or 44 percent of the built space, is in Brooklyn, with Manhattan next at 38 percent of the space.

The buyer

The PincusCo database currently indicates that Morgan Stanley owned at least six commercial properties in New York City with 431,548 square feet and a city-determined market value of $65.3 million. (Market value is typically about 50% of actual value.) The portfolio has $56.3 million in debt, borrowed from Blackstone Group and Corebridge Financial. Within the portfolio, the bulk, or 85 percent of the 431,548 square feet of built space are industrial properties, with specialty properties next occupying 15 percent of the space. They are all located in Queens.

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