CIM Group announced that Related Fund Management has acquired 265-275 Cherry Street, two 26-story towers with 490 units in Manhattan’s Lower East Side in the Two Bridges community. CIM sold the approximately 450,560-rentable-square-foot property with L+M Development Partners, its joint venture partner. The land parcel located at 260 Cherry Street was not included in the sale.
265-275 Cherry Street is a fully-leased, Section 8 housing community originally built in 1979, which features one-, two- and three-bedroom units. Amenities include an on-site community room, a convenience store and outdoor courtyards with playgrounds.
In 2014, L+M and CIM voluntarily entered into a 40-year regulatory agreement to preserve the asset as affordable housing for low-income households. Related started exclusively as an affordable housing developer in 1972 and today is one of the largest private developers and preservationists of affordable and workforce housing in the country.
Cushman & Wakefield represented both the seller and buyer in the transaction.