NEW YORK CITY—For investors who've had a hard time getting into Queens in the midst of the renaissance happening in the outer boroughs, now's your chance.
A mixed-use property in Flushing—the largest downtown section of Queens—is set to come up for a bankruptcy auction next month, a rare type of marketing process in the city. Situated within one mile of no less than six construction projects, the Shirokia Tower, at 142-28 38th Ave., is valued at around $30 million, or $560 per square foot.
Several unusual elements of the building's story have dovetailed to create the need for an auction, Paramount Realty USA principal Misha Haghani—who is co-marketing the property with Greg Corbin, managing director of the Corbin Group at Besen & Associates—tells GlobeSt.com.
“This is a failed condominium development that was built in 2009 at the peak of troubled times,” says Haghani. “Most of the other such buildings have since sold out unit-by-unit to end users, likely at higher prices than the seller hoped to achieve when originally bringing the units to market. We haven't seen a bulk sale of a condominium building in the city for some time.”
Explains Corbin to GlobeSt.com, “There were contracts out on units in the building in 2009 but financing for end users during the credit crunch was difficult; the building had to be 51% sold out before traditional banks would lend and unfortunately that never happened here.
As a result, the Shirokia became a rental building. The 53,000-square-foot asset features 23 apartments, a ground floor retail space of more than 11,000 square feet, three community spaces spanning a total of more than 9,500 square feet as well as 30 parking spaces. Asking rent is expected to be $35 per square foot, Corbin says. The seller is a private investor.
Situated two blocks away from Northern Blvd., a main thoroughfare, and between Bowne and Union streets, the Shirokia is “surrounded by tremendous development,” says Haghani.
Projects going up in the area include Flushing Commons, an $850 million complex spanning close to two million square feet that will feature 600 residential units, 500,000 square feet of retail, another 500,000 square feet of commercial space likely to house more retail stores and/or offices; 15,000 square feet of community space and 1,600 parking spots.
“The property is half a block from Flushing Commons, across the street from the future East West Tower and within one mile of multiple other new construction projects. The area is thriving already but in years to come the location will command even more premium rents,” adds Corbin.
Auctions aren't the norm in a city that, by and large, sells itself, notes Haghani. “You see it more when the market isn't so hot." However, he contends, that's not an issue in this section of Queens. "Flushing has been on fire.”
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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.
