Lightstone Sells Bronx Development Site
The transaction clears $40 million in mortgage debt and includes nonrefundable extensions from buyers.
July 25, 2025
Lightstone Completes Sale of Mott Haven Project, Exiting Key NYC Real Estate Asset
Lightstone Value Plus REIT I, Inc. has closed the sale of a development site in the Mott Haven section of the Bronx for $84 million. The deal, finalized on July 18, 2025, involved three adjacent parcels at 355 and 399 Exterior Street that were previously designated for a mixed-use residential and retail project.
The company entered the original agreement in late 2024 with two unaffiliated entities—355 Exterior Development Holdings LLC and 399 Exterior Development Holdings LLC. When the initial timeline didn’t hold, the buyers opted to extend. They paid a total of $1.3 million in nonrefundable fees during Q2 2025 to keep the transaction alive. Those payments weren’t credited toward the purchase price, but they did increase the company’s cash flow from the sale.
Lightstone used the closing to retire $40 million in secured mortgage debt tied to the property. After paying down the loan and covering transaction costs, the company walked away with net proceeds of $36.5 million, which includes the earlier extension payments.
The site had been positioned for development into a combined residential and commercial space. By selling now, Lightstone locks in a liquidity event and clears a significant liability from its balance sheet. The decision also reflects how firms are managing risk and capital in today’s real estate environment, where timelines shift and deal terms evolve.
For Lightstone, this transaction marks a clear step in rebalancing its portfolio. No new deals were announced in this filing, but this sale gives the company added flexibility—whether that’s to pursue new investments, reduce leverage, or return capital.
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