City records show a large affordable housing complex on the East River waterfront has been sold for $279 million.
In a deal that became official November 27, a holding company known as HP Cherry Street Housing Development Fund purchased the Lands End II towers from the Pembroke Companies. Sources tell The Lo-Down the new ownership group includes L+M Development Partners, one of the city’s most prominent affordable housing developers. L+M is, incidentally, one of three firms awarded the contract to build Essex Crossing, the large mixed-use project on the former Seward Park urban renewal site.
The two 26-story towers at 265 and 275 Cherry Street (near Rutgers Slip) include 490 rental units. The low and middle income complex was New York City’s first Section 8 project. It was developed by the Two Bridges Neighborhood Council and the Settlement Housing Fund in 1979. Those organizations do not have an ownership stake in the buildings. The offices of the Two Bridges Neighborhood Council are located in the complex.
Lands End II’s Section 8 contract with the federal government is set to expire soon. There’s no specific reason to believe it won’t be renewed, although given the financial pressures and political environment in Washington, no one is taking anything for granted. Local activists are planning to meet with representatives of the owners next week about the future of the complex. On its web site, L+M states, “Our work is based on the belief that affordable housing goes hand in hand with social responsibility. Our vision for vibrant neighborhoods has transformed the urban landscape all over New York City.”
We have a call into L+M for comment.