Chestnut Holdings pays $14.5M for 83-unit elevator rental in Elmhurst

Chestnut Holdings through the entity 8622 D LLC paid $14.5 million to Edward Bokhour and Deborah Bokhour Golpariani through the entity E.B. Management Associates LLC for midblock 83-unit residential elevator building at 86-22 Dongan Avenue in Elmhurst, Queens.
Prior to this, Chestnut Holdings has purchased 14 properties for $102.5 million since 2021, according to a PincusCo analysis of transfers. Most of that was in the Bronx, but some in Brooklyn and Queens.
The deal closed on March 24, 2022 and was recorded on April 5, 2022.
The property has 64,509 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $224 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 Edward Bokhour and Deborah Bokhour Golpariani was Edward Bokhour and Deborah Bokhour Golpariani. The signatory for Chestnut Holdings was Ben Rieder.

The property

The 86-22 Dongan Avenue parcel has frontage of 197 feet and is 96 feet deep with a total lot size of 18,100 square feet. The lot is irregular. The zoning is R7B which allows for up to 3 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $6 million.

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 received one DOB violation, 27 housing violations, and one housing litigation 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 Elmhurst, the bulk, or 36 percent of the 38.7 million square feet of commercial built space are 1-4 family buildings, with residential elevator buildings next occupying 31 percent of the space. In sales, Elmhurst has had very little sales volume relative to other neighborhoods with $127.2 million in sales volume in the last two years. For development, Elmhurst has had very little major development activity relative to other neighborhoods.It had 723,070 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other residential elevator buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of two of the four commercial properties representing 150,850 square feet of the 394,853 square feet. The two identified owners are Kaled Management and Sophia Shanfen Zhang. There are no active new building construction projects on this tax block.

all properties are residential elevator.

The buyer

The PincusCo database currently indicates that Denali Management owned at least 41 commercial properties with 975,568 square feet and a city-determined market value of $80.1 million. (Market value is typically about 50% of actual value.) The portfolio has $87.5 million in debt, with top three lenders as JPMorgan Chase, Investors Bank, and New York Community Bank respectively. Within the portfolio, the bulk, or 75 percent of the 975,568 square feet of built space are residential walkup properties, with residential elevator properties next occupying 25 percent of the space. The bulk, or 68 percent of the built space, is in Bronx, with Brooklyn next at 19 percent of the space.

Surrounding

Within a 400-foot radius of 86-22 Dongan Avenue, Pincusco identified two commercial real estate items of interests occurred over the past 24 months.
One of those two items was a sale which Sophia Shanfen Zhang bought the 34,312-square-foot, 27-unit rental (D1) on 46-10 88th Street for $6.2 million from Shahanara Khan on May 7, 2021.
One of those two items was a loan which Ronald J. Swartz borrowed $5.5 million from Gittel Realty Associates, L.P. secured by the 11,448-square-foot, 17-unit rental (C1) on 86-30 St James Avenue and four other properties on January 11, 2021.

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