Seaport Entertainment Group Inc. (NYSE: SEG) has completed the sale of an eight-story residential building at 85 South Street in New York for $8.25 million. The transaction involves a buyer group comprising an affiliate of MD Squared Property Group and Churchwick Partners.

The move is described by the company as a step to strengthen its balance sheet while maintaining focus on entertainment and hospitality destinations. The property, located in the Seaport neighborhood of Lower Manhattan, includes 21 multifamily units and 5,500 square feet of ancillary leasable space.

Transaction details

The asset was originally acquired by Howard Hughes Holdings, Seaport’s former parent company, in October 2014. The sale marks a divestiture of non-core real estate assets as the company aligns its portfolio with its strategic priorities.

Strategic context

Lenah Elaiwat, Chief Financial Officer and Treasurer of Seaport Entertainment Group, stated that selling 85 South Street is an incremental step toward strengthening the balance sheet. She emphasized that the company remains focused on assets that closely align with its entertainment and hospitality strategy.

Michael Mintz, Chief Executive Officer and Founder of MD Squared Property Group, expressed gratitude for the smooth transaction. Asaf Fligelman, Partner at Churchwick Partners, noted that the asset fits their strategy of acquiring unique, value-add properties with strong underlying fundamentals.

About the buyers

MD Squared Property Group, founded in 2014, manages over 5,000 units and 1,000,000 square feet of commercial space across New York, Connecticut, and Pennsylvania. Churchwick Partners is a New York-based investment firm focused on multifamily and hospitality assets, with a portfolio of approximately 10,000 units across the United States.

Seaport Entertainment Group was represented in this transaction by a JLL team led by Andrew Scandalios, Hall Oster, and Ethan Stanton.

Jones Trading analyst Matthew Erdner has raised the price target for Seaport Entertainment Group (NYSE: SEG) to $36, up from the previous $27. Erdner maintains his Buy rating on the stock, signaling sustained confidence in the company’s valuation and growth trajectory.

The adjustment reflects an upward revision in the firm’s outlook for Seaport Entertainment Group. By increasing the price target by $9, Jones Trading indicates that the current market price offers significant upside potential relative to its intrinsic value assessment.

Analyst Action Details

The following table outlines the specific changes made by the analyst:

Erdner’s decision to maintain the Buy rating while elevating the price target suggests that recent developments or financial performance metrics have strengthened the investment case. The move aligns with a broader strategy of identifying undervalued opportunities within the entertainment sector.

Market Implications

For investors holding Seaport Entertainment Group shares, the revised target implies a higher ceiling for capital appreciation. The $36 target serves as a benchmark for institutional and retail investors monitoring analyst sentiment on the stock. This update reinforces the positive stance of Jones Trading toward the company’s near-term prospects.