B Square Realty pays $10.5M for 2 buildings in Long Island City

Flushing-based B Square Realty paid $10.5 million to Marica Donadic and Steve Donadic for two adjacent Long Island City, Queens, mixed-use properties located two blocks south of Queens Plaza, in two separate transactions.

In the first, B Square Realty through the entity BS LIC Realty LLC paid $7 million to Marica Donadic and Steve Donadic through the entity Donadic, Marica for the midblock two-unit industrial building at 42-38 27th Street in Long Island City, Queens.
The deal closed on February 8, 2022 and was recorded on March 14, 2022. The property has 5,400 square feet of built space and 16,903 square feet of additional air rights for a total buildable of 22,300 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,296 and the price per buildable square foot is $313 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 Marica Donadic and Steve Donadic was Marica Donadic and Steve Donadic. The signatory for B Square Realty was Hang Dong Zhang.

In the second transaction, B Square Realty through the entity BS LIC Realty LLC paid $3.5 million to Marica Donadic and Steve Donadic through the entity Donadic, Marica for midblock two-unit mixed-use building at 42-36 27th Street in Long Island City, Queens.
The deal closed on February 8, 2022 and was recorded on March 14, 2022. The property has 2,740 square feet of built space and 8,418 square feet of additional air rights for a total buildable of 11,165 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,277 and the price per buildable square foot is $313 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 Marica Donadic and Steve Donadic was Marica Donadic and Steve Donadic. The signatory for B Square Realty was Hang Dong Zhang.

Prior sales and revenue

Prior to this transaction, Pincusco data shows that B Square bought one other property in the past 24 months, when B Square Sunnyside Realty LLC paid $6.8 million to Styliani Moustakas through the entity Cepps Realty, Ltd for the mixed-use building (K2) at 136-55 37th Avenue in Flushing, Queens.

The seller Marica Donadic purchased one property in one transaction for a total of $2.6 million and had not sold any properties over the same time period. The 5,400-square-foot 42-38 27th Street generated revenue of $85,738 or $16 per square foot, according to the most recent income and expense figures.

The property

The 42-38 27th Street parcel has frontage of 44 feet and is 100 feet deep with a total lot size of 4,460 square feet. The zoning is M1-5/R7-3 which allows for up to 5 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $375,000.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has not received any significant violations 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 Long Island City, the bulk, or 33 percent of the 66.2 million square feet of built space are residential elevator buildings, with industrial buildings next occupying 30 percent of the space. In sales, Long Island City has 4.2 times the average sales volume among other neighborhoods with $1.2 billion in sales volume in the last two years and is the highest in Queens. For development, Long Island City is the 2nd most active neighborhood among other neighborhoods. It had 9.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 14 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of eight of the 12 commercial properties representing 26,646 square feet of the 34,786 square feet. The identified owner is Judy Chang. There are four active new building construction projects totaling 270,327 square feet. The largest is a 175-unit, 82,941-square-foot R-1 building developed by Chen Mason with plans filed January 17, 2019 and it has not been permitted yet. The second largest is a 121-unit, 82,941-square-foot R-1 building developed by Judy Chang with plans filed February 25, 2021 and it has not been permitted yet.

The majority, or 66 percent of the 36,762 square feet of built space are hotel buildings, with industrial buildings next occupying 15 percent of the space.

Surrounding

Within a 400-foot radius of 42-38 27th Street, Pincusco identified 17 commercial real estate items of interests occurred over the past 24 months.
Of those 17 items, three were in new building development. There were two new building permit applications and one new building permit. The most recent of these three items was a permit on September 7, 2021 for a 39,442-square-foot R-2 building with 51 residential units at 27-20 42nd Road.
Of those 17 items, three were sales above $5 million totaling $79.8 million. The most recent of the three was United Construction & Development Group which bought the 76,000-square-foot industrial (G7) on 24 Street and one other property for $40.1 million from Avrohom Becker on February 11, 2022.
Of those 17 items, 11 were loans above $5 million totaling $285 million. The most recent of the 11 was United Construction & Development Group which borrowed $23 million from Bank of China secured by the 76,000-square-foot industrial (G7) on 24 Street and one other property on February 11, 2022.

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