A top affordable and mixed-income housing developer has entered a strategic partnership with global investment firm Sixth Street.
The deal involves L+M Cos., a newly established holding company comprised of L+M Development Partners, L+M Fund Management, and LMXD. L+M Cos. will be led by Lisa Gomez, Eben Ellertson, Carrie Van Syckel, and David Dishy, who will serve as the executive committee leading the multidisciplinary enterprise.
L+M will remain the majority partner in the business, with Sixth Street making a significant investment to drive a national expansion.
“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,” said Van Syckel, a partner at the firm. “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.”
The investment will support L+M’s growth efforts in the New York region, as well as expand development and preservation work in affordable housing around the country, according to company officials.
L+M has been an affordable housing developer since its founding by Sandy Loewentheil and Ron Moelis in 1984. The New York-based company is active in 14 states, having developed or invested in almost 60,000 homes with overall capitalization in excess of $20 billion spanning affordable and mixed-income housing development, affordable housing preservation, and construction. It ranks No. 4 on the AHF 50 affordable housing owners list and No. 17 on the AHF 50 developers list this year.
The firm has developed a number of notable properties, including Bronx Point, a mixed-use project with 542 affordable homes and accompanying on-site social services, a public waterfront park in partnership with the New York City Department of Parks & Recreation, educational space for youth, and retail. It will also be the home of the Hip Hop Museum.
L+M is also one of the forces behind Sendero Verde, a 709-unit affordable housing development in New York City’s East Harlem and the largest multifamily project built to passive house standards in the United States.
Newmark served as financial adviser, and Latham & Watkins and Nixon Peabody served as legal advisers to Sixth Street. For L+M Cos., Goldman Sachs & Co. served as the exclusive financial adviser, and Fried, Frank, Harris, Shriver & Jacobson served as legal advisers.
