One of Manhattan’s last 421a development sites is for sale 

Metin Negrin’s Lexin Capital put the development site at 75 Nassau Street on the market, offering materials show. Lexin is eyeing a valuation around $75 million, either in an outright sale or through the sale of a partial stake, according to a source familiar with the site.

One of the key selling points is that the site is grandfathered into the old 421a program, which is more favorable to developers compared to the 485x replacement that lawmakers enacted earlier this year.

“The expired 421a(16) program has significant benefits over the replacement 485-x program, including higher AMI tiers for the affordable units and lower wage requirements,” reads a memo from Newmark, where a team led by Adam Spies and Adam Doneger is running the sales process.

A representative for Lexin Capital was not immediately available for comment.

The 75 Nassau site is zoned for mixed-use residential and commercial and can be developed into a rental or condo building with 253 units.

The project is a long time in the making. Lexin bought the site a decade ago in 2014 for $46 million.

Like many rental projects, its future became cloudy when the 421a tax abatement expired in June 2022 — in part because lawmakers thought it was too generous to developers.

Its replacement, 485x, has higher-wage and deeper-affordability requirements. Because of that, developers have been skeptical about these projects penciling out. The Real Estate Board of New York said it expects 485x will yield fewer rental units than 421a.

The grandfathered 421a sites should be in high demand, especially as supply dwindles.

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