Sixth Street Takes Stake in L+M Companies 

L+M Companies officially has a new partner. 

Global investor Sixth Street is making a “significant” investment in the affordable housing developer as part of a new strategic partnership, Commercial Observer has learned. 

The exact size of the investment in L+M Companies — the holding company that comprises L+M Development Partners, L+M Fund Management and spinoff LMXD — couldn’t be gleaned, but sources said it’s a minority stake. L+M Companies’ current leadership team, which comprises Lisa Gomez, Eben Ellertson, Carrie Van Syckel and David Dishy, will remain in place. 

Newmark advised Sixth Street in the transaction, while Goldman Sachs advised L+M. 

L+M was founded roughly 40 years ago and is an active developer and investor in affordable and mixed-use housing in 14 states today, with its current portfolio valued at around $20 billion across 60,000 homes. Sixth Street’s investment will aid L+M’s expansion throughout the New York metro area, Texas, the Southeast and California, as well as bolstering its existing development, preservation and construction portfolio. 

“The creation and preservation of affordable housing is a pressing national priority, and L+M is committed to strengthening economically diverse communities decades into the future,” Van Syckel, partner at L+M, said in a release. “Partnering with a leading investor like Sixth Street creates a powerful foundation for L+M to deliver on our mission and foster transformative, community-driven development that ensures long-term housing solutions for families across the country.” 

 Marcos Alvarado, partner and head of U.S. real estate at Sixth Street, echoed the sentiment about affordable housing as a national challenge.

“L+M is a highly differentiated leader in developing, preserving and building affordable and mixed-income housing, and its multi-disciplinary approach offers significant benefits to supply-constrained markets,” Alvarado said in a release. “Sixth Street is pleased to partner with L+M’s leadership team to support their continued efforts toward expanding the supply of high-quality affordable housing.” 

That supply includes Bronx Point, a 530,000-square-foot development on the Harlem River that comprises 542 affordable units and on-site social services as well as a 2.8-acre park, and — soon — the Hip Hop Museum. It also includes ArtSide, a new neighborhood that is being created over multiple phases on the Newark riverfront, and will include 330 mixed-income apartments, 20,000 square feet of commercial space and a performing arts space. 

Earlier this year, L+M also completed the initial phase of Alafia, a 2.2 million-square-foot project in East New York, Brooklyn, that will include 2,400 affordable units for seniors and people with intellectual disabilities. 

As for Sixth Street, the investment giant currently has 650 employees and more than $100 billion in assets under management. In an October 2024 interview with Commercial Observer, Alvarado spoke of his firm’s approach to investment. In August last year, Sixth Street also acquired a 65 percent joint venture ownership stake in Plymouth Industrial REIT. 

Cathy Cunningham can be reached at ccunningham@commercialobserver.com