Blake Partners pays $22M for specialty in Edgemere

Blake Partners through the entity Lawrence Nursing Realty LLC paid $22 million to Matityahu Tenenbaum through the entity Lawrence SNF Realty LLC for specialty building (I6) at 350 Beach 54th Street in Edgemere, Queens.
The deal closed on September 22, 2022 and was recorded on October 12, 2022. The property has 67,161 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $327 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 seller bought the property on November 20, 2019, for $10.3 million. The signatory for Matityahu Tenenbaum was Matityahu Tenenbaum. The signatory for Blake Partners was Tivadar Marcovici. The contract date is April 17, 2019, almost three and a half years ago.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Blake Partners had purchased any other properties and sold two properties in two transactions for a total of $12.6 million over the past 24 months.
The seller Matityahu Tenenbaum had not purchased any other properties and had not sold any properties over the same time period.

The property

The 350 Beach 54th Street parcel has frontage of 240 feet and is 200 feet deep with a total lot size of 44,000 square feet. The lot is irregular. The zoning is R5 which allows for up to 1.25 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $6.4 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received $5,610 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 Edgemere, the majority, or 79 percent of the 4.4 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Edgemere has had very little sales volume relative to other neighborhoods with $127.1 million in sales volume in the last two years. For development, Edgemere has had very little major development activity relative to other neighborhoods.It had 198,340 square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of eight of the 17 commercial properties representing 83,727 square feet of the 133,720 square feet. The largest owner is Matityahu Tenenbaum, followed by the New York City Housing Authority.
On the tax block, there was one new building construction project filed totaling 4,625 square feet. It is a 4,625-square-foot office (B) building developed by Anthony Romeo Jr. with plans filed April 30, 2020 and it has not been permitted yet.

The majority, or 50 percent of the 133,720 square feet of built space are specialty buildings, with elevator buildings next occupying 32 percent of the space.

The seller

The PincusCo database currently indicates that Matityahu Tenenbaum owned at least one commercial property in New York City with 67,161 square feet and a city-determined market value of $6.4 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single specialty property. It is located in Queens.

The buyer

The PincusCo database currently indicates that Blake Partners owned at least two commercial properties in New York City with 308,177 square feet and a city-determined market value of $16.3 million. (Market value is typically about 50% of actual value.) The portfolio has $14 million in debt, borrowed from Principal Real Estate Investors. Within the portfolio, the bulk, or 98 percent of the 308,177 square feet of built space are industrial properties, with mixed-use properties next occupying 2 percent of the space. The bulk, or 98 percent of the built space, is in Queens, with Brooklyn next at 2 percent of the space.

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