Lexin Capital sold a unicorn in today’s market: a development site eligible for the lapsed 421a tax abatement program.
Metin Negrin’s firm offloaded the parcel at 75-83 Nassau Street to Full Time Management and Montgomery Street Partners for $53 million, the Commercial Observer reported. The partners are planning a mixed-use development at the site.
Lexin put the development site up for sale last summer, seeking a valuation of around $75 million in either an outright sale or stake sale for one of the last 421a-eligible development sites in Manhattan. For many, that’s huge, as 421a is more favorable to developers compared to its replacement.
Lexin bought the site — five vacant lots following demolition of the buildings — in 2014 for $46 million.
The 13,000-square-foot lot is zoned for mixed-use residential and commercial and eligible to be developed into a 275,000-square-foot rental or condo building. Full Time and Montgomery are planning a 265-unit development with retail and additional commercial space.
A JLL team including Andrew Scandalios, Ethan Stanton and Jonathan Hageman negotiated the sale.
Lexin recently filed plans to convert 229 West 28th Street in Chelsea from office and retail use to apartments. The conversion plans call for the 12-story, 157,000-square-foot building to expand to a 35-story, 207,000-square-foot residential complex with 270 units.
Most of the space would be residential, though there would also be 3,900 square feet of commercial space; the Department of Buildings application references “general wiring for a nightclub” on the ground floor.
Elsewhere in the Financial District, SL Green just secured a $480 million mortgage from Wells Fargo, JPMorgan Chase and Bank of America to finance its $730 million acquisition of Park Avenue Tower.
The firm is making a significant $270 million down payment, which represents approximately 36 percent of the acquisition’s total financing.
— Holden Walter-Warner
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One of Manhattan’s last 421a development sites is for sale
SL Green finances Park Avenue Tower with $480M loan
Lexin planning 270-unit conversion in Chelsea
