BLDG Management pays $86.5M to SkyView Companies, and J.P. Morgan fund, for 103-unit rental in Flushing

Lloyd Goldman’s BLDG Management through the entity BLDG Mb2 LLC paid $86.5 million to Onex Real Estate Partners, SkyView Companies, and J.P. Morgan Global Alternatives through the entity Sky View Northern Tenant LP for the 103-unit rental building at 144-74 Northern Boulevard in Flushing, Queens. The property is divided into nine individual condominium tax lots. The property is owned through a ground lease, with Hogsett Family LP as the fee owners.
The deal closed on January 19, 2023 and was recorded on January 30, 2023. The nine tax lots have 119,743 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $722 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 Onex Real Estate Partners, SkyView Companies, and J.P. Morgan Global Alternatives was David Brickman. The signatory for BLDG Management was Lloyd Goldman. This is the sale and assumption of a ground lease. The fee is owned by the Hogsett Family LP, with Russell Hogsett signatory for the 99-year lease which expires in 2114. The Real Deal posted information on the sale last week, noting Helen Hwang of Meridian Capital Group brokered the sale and acquisition financing.

Dime Community Bank provided $47 million in acquisition financing, replacing the prior debt provided by Wells Fargo totaling $55 million.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer BLDG Management purchased one properties in one transactions for a total of $17.2 million and sold two properties in two transactions for a total of $12.2 million over the past 24 months.
The seller Onex Real Estate Partners had not purchased any other properties and had not sold any properties over the same time period.

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 not received any significant violations in the last year.

Development

For the tax lot buildings, one out of the nine buildings received a initial certificate of occupancy in the last ten years. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The block

On the tax block of 144-74 Northern Blvd, PincusCo has identified the owners of 10 of the 21 commercial properties representing 160,378 square feet of the 317,306 square feet. The largest owner is Onex Real Estate, followed by Thet Lim and then S.W. Management.
There are no active new building construction projects on this tax block.

The majority, or 46 percent of the 218,808 square feet of built space are specialty buildings, with elevator buildings next occupying 26 percent of the space.

The buyer

The PincusCo database currently indicates that BLDG Management owned at least 170 commercial properties in New York City with 5,511,190 square feet and a city-determined market value of $1.5 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 59 percent of the 5,511,190 square feet of built space are elevator properties, with office properties next occupying 11 percent of the space. The bulk, or 78 percent of the built space, is in Manhattan, with Queens next at 11 percent of the space.

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