NEW YORK CITY—Just 13 months after acquiring a large industrial property in the Long Island City section of Queens, a duo of “tenants in common” managed by BLDG Associates has sold the facility for $60 million. Located at 47-25 34th St., the 322,390-square-foot asset was acquired in 2013 for nearly $41 million.
The buyer was Brickman 34th St LIC LLC, and it was represented by Empire Leasing and Development. The seller was represented by RKF Investment Sales & Advisory Services, which also represented the investor when it first picked up the property.
The property's increase in value during BLDG's tenants' ownership isn't surprising, and likely will continue during Brickman's ownership, RKF president Jeff Fishman—who handled this latest transaction—tells GlobeSt.com.
“There've been a lot of conversions of similar industrial locations in the area into luxury residential and hotel properties, and the buyer held the belief that the supply of quality industrial product in Long Island City would continue to be diminished,” he says. “The buyer has a similar philosophy to the seller's when it purchased the property, and I hope they're right."
In addition, Fishman notes, current industrial rents in the area are a steal compared to Manhattan, giving Brickman the opportunity for substantial value creation while still offering tenants a low-cost alternative spot. “Rents are 20-30% of what they are in Manhattan. There's a lot of room between 20% and 100% of that rate.”
The three-story building at 47-25 34th St. is bounded by 47th and 48th avenues and 34th and 35th streets located directly in between the Queens Boulevard and the Long Island Expressway.
“What led the current seller to acquire this building last year was due to an accelerated pace of luxury residential and hotel conversions,” says Fishman. “The value appreciation that we have witnessed with this transaction affirms both the desirability of this property and the Long Island City market.”
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
