Nelson Management eyes $200M for Bronx apartments
1,300-unit portfolio is under Article XI agreement
By: Rich Bockmann
Nelson Management’s Robert Nelson with the Promenade Nelson Apartments and Lafayette Boynton Apartments (Nelson Management)
Nelson Management and its partners are looking to sell a large multifamily portfolio in the Bronx for more than $200 million.
The owners have put their Lafayette Boynton and Promenade Nelson apartment complexes, which count roughly 1,300 units combined, up for sale with a whisper price north of $200 million, The Real Deal has learned.
The properties are covered by an agreement under the state’s Article XI program, which provides landlords an exemption on their property taxes in exchange for investing in their buildings and making improvements. The apartments are subject to rent stabilization.
That limits an owner’s ability to increase revenues by pushing rents, but it also provides an element of stability: the buildings remained 99 percent occupied at the height of the renter exodus at the beginning of the pandemic, according to a person familiar with the properties.
Representatives for Nelson Management and its partners — JP Morgan Asset Management and L+M Development Partners — could not be immediately reached for comment. Eastdil Secured is marketing the properties.