Watermark Capital signs ground lease with Montgomery Street, which paid Lexin $53M for FiDi dev site

Watermark Capital Group through the entity 75 Nassau Lessee LLC signed a 99-year ground lease as tenant and developer with landlord Montgomery Street Partners through the entity 75 Nassau Owner LLC for the development site as (V1) at 75 to 83 Nassau Street in Financial District, Manhattan. The expected use is ground up development .
The deal closed on December 31, 2025 and was recorded on January 14, 2026.

Just before that lease was signed, Montgomery Street Partners through the entity 75 Nassau Owner LLC paid $53 million to Lexin Capital through the entity Lexin Nassau Partners, LLC for the development site. The expected use for Montgomery Street Partners, as the fee owning landlord, is cash flowing.

The transaction value for the 99-year ground lease was also $53 million.

The Commercial Observer reported the site is zoned for as much as 250,000 square feet and the developer plans 265-unit mixed-use apartment building.
The signatory for Montgomery Street Partners was Murray McCabe . The signatory for Watermark Capital Group was Meir D. Tabak . The contract date was November 21, 2025. This is through Montgomery’s Ground Lease REIT affiliate GLR Capital Investments.

Prior sales, articles and revenue

Prior to this transaction, PincusCo has records that the buyer Watermark Capital Group purchased 30 properties in 13 transactions for a total of $216.1 million over the past 24 months.
The seller Montgomery Street Partners purchased two properties in one transaction for a total of $46.5 million and sold two properties in one transaction for a total of $46.5 million over the same time period. The Real Deal reported on January 08, 2026 that Full Time Management (which is an affiliate of Watermark Capital Group) and Montgomery Street Partners paid $53 million to Lexin Capital for 75-83 Nassau Street, New York, NY. The brokers were Andrew Scandalios, Ethan Stanton, and Jonathan Hageman of JLL.

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 not received any significant violations 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 neighborhood

In Financial District, The majority, or 74 percent of the 79.9 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Financial District has the 5th highest sale turnover among other neighborhoods in the city with $2 billion in sales volume in the last two years. For development, Financial District is the 4th most active neighborhood among other neighborhoods. It had 17.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 22 percent of the neighborhood’s built space.

The block

On the tax block of 83 Nassau Street, PincusCo has identified the owners of four of the nine commercial properties representing 131,602 square feet of the 330,236 square feet. The largest owner is Housing Solutions, followed by Rivington Company and then Niarchos Family.
On the tax block, there were two new building construction projects totaling 119,763 square feet. The largest is a 119,758 square-foot business (B) building submitted by Hidrock Properties and filed by Eddie Hidary with plans filed April 4, 2019 and it has not been permitted yet. The second largest is a five-unit, five square-foot 61 building submitted by Administrative Contractor with plans filed February 5, 2025 and it has not been permitted yet.

The majority, or 50 percent of the 330,236 square feet of built space are specialty buildings, with hotel buildings next occupying 34 percent of the space.

The seller

The PincusCo database currently indicates that Montgomery Street Partners owned at least two commercial properties in New York City with 7,000 square feet and a city-determined market value of $2.5 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 100 percent of the 7,000 square feet of built space are industrial properties, with G7 properties next occupying 0 percent of the space. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that Watermark Capital Group owned at least 144 commercial properties with 1,670 residential units in New York City with 1,640,209 square feet and a city-determined market value of $324.8 million. (Market value is typically about 50% of actual value.) The portfolio has $413.3 million in debt, with top three lenders as Slate Property Group, BridgeCity Capital, and QuadReal Property Group respectively. Within the portfolio, the bulk, or 51 percent of the 1,640,209 square feet of built space are walkup properties, with elevator properties next occupying 16 percent of the space. The bulk, or 88 percent of the built space, is in Brooklyn, with Queens next at 6 percent of the space.

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