Morgan Stanley Buys Lower East Side Medical Condo Unit for $56M

Morgan Stanley Real Estate Investing (MSREI), the global private real estate investment arm of Morgan Stanley, has acquired a commercial condominium unit spanning three floors on Manhattan’s Lower East Side for $56 million, according to city records made public Wednesday.

MSREI, through the entity NHNR Hold CO 29, purchased the 55,377-square-foot medical condo unit at 175 Delancey Street — also known as The Goldin at Essex Crossing — from Delancey Street Associates, a joint venture involving L+M Development Partners, Taconic Partners, BFC Partners, Prusik Group and Goldman Sachs Asset Management’s Urban Investment Group, records show.

David Gross, head of acquisitions at Morgan Stanley, signed the deal for the buyer, while Adam Hellegers, a partner and general counsel at L+M, signed for the seller, which used the entity Site 6 Commercial New Owner, according to records.

Newmark’s Adam Spies, Adam Doneger, Brett Siegel and Eric Roth represented the seller, while it was unclear who represented the buyer. Spokespeople for Morgan Stanley, L+M and Newmark did not immediately respond to requests for comment.

The condo unit — which covers the cellar, first floor and second floor of the mixed-use Goldin — is part of the 1.9 million-square-foot Essex Crossing development, which was developed in 2018 by Delancey Street Associates.

The 15-story Goldin includes 100 one-bedroom units of senior housing — all affordable — plus ground-floor retail, a health clinic and a senior center, according to its website. The residential portion sits on top of a five-story commercial base, which is occupied by a New York University Langone Health medical center providing outpatient clinic services. The condo unit part of the recent sale is the NYU clinic.

News of the sale comes after some recent activity on the Lower East Side. In June, Rialto Capital Management provided a $31.1 million loan to refinance a portfolio of mixed-use multifamily assets in the area, encompassing 84 apartments and seven ground-floor commercial units, as Commercial Observer previously reported.

There’s also been some recent leasing news in the neighborhood. In August, popular vintage hip-hop apparel store In Vintage We Trust signed a lease for 2,000 square feet at 105 Rivington Street, while Asian restaurant and cocktail bar Tin’s inked a deal for 3,600 square feet at 109 Ludlow Street.

Isabelle Durso can be reached at idurso@commercialobserver.com.