Nelson Management and JPMorgan are looking to sell their Two Bridges rental building for north of $180 million.
The partners are pitching the 19-story, 256-unit 275 South Street as a tax-protected investment thanks to its 30-year Article XI abatement, which caps property taxes at 5 percent of the property’s income through 2055.
Half of the units at the late 1970s-era building are free market. Another 37 percent are covered by a Section 8 agreement, and the remaining 13 percent are below-market.
The building offers potential buyers a “balance of stability and mark-up-to-market upside,” according to an offering memo from Eastdil Secured.
A spokesperson for JPMorgan declined to comment. An Eastdil team led by Will Silverman, Gary Phillips and Daniel Parker is overseeing the sale process.
This is the owners’ second attempt to sell the building in as many years.
Nelson, JPMorgan and partner L+M Fund Management first put the property up for sale in 2024, eyeing a price of $175 million. The property’s complicated regulatory agreement, however, was a sticking point in getting a potential deal done, according to a source familiar with the process.
The partnership bought the building for $115 million in 2015 as Two Bridges was beginning to transform into a more high-end neighborhood with projects like Extell Development’s One Manhattan Square.
The new owners spent more than $20 million renovating the property, which was built in 1978.
“A lot of these Mitchell-Lama [developments], there’s not a lot of money invested into amenities and curb appeal; you’re talking about the original lobbies, the original hallways, the apartments hadn’t been touched,” Nelson Management’s Robert Nelson said in 2018. “This was the perfect opportunity for us to go in and really speak to the marketplace, from an amenity standpoint, for all the different income classes we’d be servicing.”
Read more
Nelson, JP Morgan eye $175M for LES rental
Nelson and L+M land $149M refi for two rental buildings
