Vistria Group pays $174M to L+M, JPMorgan for stake in Nelson Management affordable in Bronx, Manhattan

The Vistria Group paid $174 million to L+M Development Partners and JPMorgan Chase for a stake in Nelson Management Group affordable properties in the Bronx and Manhattan in two transactions. Nelson Management retained a stake in the properties and will continue to manage them, according to The Real Deal.

The acquisition included a refinancing in which KeyBank provided $96 million.

In the first, Vistria Group paid $103.7 million to L+M Development Partners and JPMorgan Chase for the 484-unit residential elevator building (D3) at 820-880 Colgate Avenue and the 484-unit residential elevator building (D3) at 825-875 Boynton Avenue in Soundview, Bronx.
The deal closed on June 8, 2023 and was recorded on June 21, 2023. The two properties have 1,069,698 square feet of built space and 29,409 square feet of additional air rights for a total buildable of 1,097,818 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $96 and the price per buildable square foot is $94 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 Nelson Management Group, L+M Development Partners, and JPMorgan Chase was Robert Nelson. The signatory for Nelson Management Group and Vistria Group was Robert Nelson.

In the second, Vistria Group paid $70.3 million to L+M Development Partners and JPMorgan Chase for the 318-unit residential elevator building (D4) at 150 West 225th Street in Marble Hill, Manhattan and two other tax parcels.
The deal closed on June 8, 2023 and was recorded on June 21, 2023. The three properties have 461,475 square feet of built space and 75,205 square feet of additional air rights according to a PincusCo analysis of city data. The sale price per built square foot is $152 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 Nelson Management Group, L+M Development Partners, and JPMorgan Chase was Robert Nelson. The signatory for Nelson Management Group and Vistria Group was Robert Nelson.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 820-880 Colgate Avenue.

Prior sales and revenue

Prior to this transaction, PincusCo has records that Nelson Management Group purchased one property in one transactions for a total of $55.3 million and has no record it sold any properties over the past 24 months.
The former owners according to the Department of Housing Preservation and Development includes Steve Seltzer, head officer and Christine Chorny, officer. The business entity is Lafayette Nelson Apartments Llc. The two properties with a total of 1,069,698 square feet of built space generated revenue of $16.2 million per year or $15 per square foot. The sale price per square foot was $97.

The property

The residential elevator building with 484 residential units in Soundview has 1,069,698 square feet of built space and 29,409 square feet of additional air rights for a total buildable of 1,097,818 square feet according to a PincusCo analysis of city data. The parcel has frontage of 722 feet and is 531 feet deep with a total lot size of 227,344 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $29.6 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received one DOB violation, 35 housing violations, $2,700 in OATH penalties, and three housing litigations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

There are no active new building construction projects on this tax block.

All properties are elevator.

The seller

The PincusCo database currently indicates that L+M Development Partners owned at least 209 commercial properties with 19,708 residential units in New York City with 19,248,825 square feet and a city-determined market value of $2 billion. (Market value is typically about 50% of actual value.) The portfolio has $3 billion in debt, with top three lenders as NYC Housing Development Corporation, Wells Fargo, and Barings respectively. Within the portfolio, the bulk, or 84 percent of the 19,248,825 square feet of built space are elevator properties, with walkup properties next occupying 13 percent of the space. The bulk, or 46 percent of the built space, is in Brooklyn, with Manhattan next at 35 percent of the space.
The PincusCo database currently indicates that Nelson Management Group owned at least 11 commercial properties with 2,085 residential units in New York City with 1,716,040 square feet and a city-determined market value of $167.5 million. (Market value is typically about 50% of actual value.) The portfolio has $204.7 million in debt, with top three lenders as Helaba, Hp Atlantic Plaza Towers Housing Development Fund, and New York Community Bank respectively. Within the portfolio, the bulk, or 97 percent of the 1,716,040 square feet of built space are elevator properties, with walkup properties next occupying 3 percent of the space. The bulk, or 49 percent of the built space, is in Brooklyn, with Manhattan next at 22 percent of the space.
The PincusCo database currently indicates that JPMorgan Chase owned at least five commercial properties with six residential units in New York City with 3,391,248 square feet and a city-determined market value of $1.3 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 100 percent of the 3,391,248 square feet of built space are office properties, with walkup properties next occupying 0 percent of the space. They are all located in Manhattan.

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