Long Island City Development Site Sells for $40M
The purchaser plans to construct a 270,000-square-foot commercial facility at the site in Long Island City.
NEW YORK CITY – Atlas Capital Group has sold the 24,500-square-foot land parcel located at 24-02 Queens Plaza S. in Long Island City, Queens, for $40 million.
Encompassing the entire blockfront along 24th St., Queens Plaza S. and 42nd Rd., the site has been purchased with plans to construct a more than 270,000-rentable-square-foot commercial facility.
The new owner of the site will commence construction on the facility upon expiration of the existing tenant’s lease term.
Upon completion, the new structure will aim to capitalize on the area’s employment opportunities and its proximity to accessible public transportation.
Newmark Knight Frank served as the exclusive broker in the transition. NKF’s vice chairman, Brian Ezratty and Scott Ellard represented the seller, while NKF managing director, Bill Harvey represented the purchaser.
“Both debt and equity have not been as readily available as they were before February and when they are, they have become much more expensive,” says Ezratty. “Investors, developers and lenders are still grappling with the perceived impact of the virus on commercial real estate markets in both the near term and long term.”
Ezratty adds, “Getting through due diligence was an additional hurdle, given the government’s restrictions for on-site tours and inspections in recent months. When both buyer and seller demonstrate patience and perseverance as they did here, properties can and will still trade hands to the mutual benefit of all concerned.”
“The QPS transaction illustrates that developers with a clear vision and strong commitment to the long-term resilience and viability of New York City can get the deal done,” states Harvey.