Auto dealer pays $35M for industrial properties in Sunnyside

Car dealer Dennis & Co. Auto Group through the entity Dco Qozb 38-15 Qb, LLC paid $35 million to Savas Tsitiridis, Silke Tsitiridis, and Eftihia Tsitiridis through the entity 38-15 Owner, LLC for industrial building (G1) at 38-08 43rd Avenue in Sunnyside, Queens and industrial building (G1) at 38-15 Queens Boulevard in Sunnyside, Queens.
The deal closed on February 28, 2023 and was recorded on March 9, 2023. The two properties have 16,725 square feet of built space and 86,918 square feet of additional air rights for a total buildable of 103,680 square feet according to PincusCo analysis of city data. The sale price per built square foot is $2,092 and the price per buildable square foot is $337 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for Savas Tsitiridis, Silke Tsitiridis, and Eftihia Tsitiridis was Savas Tsitiridis, Silke Tsitiridis, and Eftihia Tsitiridis. The signatory for Dennis & Co. Auto Group was Brian J. Dennis. The contract date was June 14, 2022.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 38-15 Queens Boulevard.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Dennis & Co. Auto Group had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Savas Tsitiridis had not purchased any other properties and had not sold any properties over the same time period. The two properties with a total of 16,725 square feet of built space generated revenue of $694,909 per year or $42 per square foot. The sale price per square foot was $2,093.

The property

The 38-15 Queens Boulevard parcel has frontage of 378 feet and is 80 feet deep with a total lot size of 30,240 square feet. The zoning is M1-4 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $1.8 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received $300 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Sunnyside, the bulk, or 32 percent of the 15.9 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 29 percent of the space. In sales, Sunnyside has had very little sales volume relative to other neighborhoods with $257.5 million in sales volume in the last two years. For development, Sunnyside has had very little major development activity relative to other neighborhoods.It had 462,726 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On the tax block, there was one new building construction project filed totaling 139,029 square feet. It is a N/A-unit, 139,029-square-foot B building developed by Benjamin Malinksy with plans filed October 14, 2016 and permitted June 3, 2019.

The majority, or 83 percent of the 182,640 square feet of built space are office buildings, with industrial buildings next occupying 17 percent of the space.

The seller

The PincusCo database currently indicates that Savas Tsitiridis owned at least one commercial property in New York City with 4,800 square feet and a city-determined market value of $1.1 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single walkup property. It is located in Queens.

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