Chris Xu’s United Construction pays $40.1M to Avrohom Becker for dev sites in Long Island City
Chris Jiashu Xu’s United Construction & Development Group through the entity Gs Tower LLC paid $40.1 million to Avrohom Becker through the entity AB Marbec Realty Corp. for industrial building at 42-61 24th Street in Long Island City, Queens and industrial building at N/A 24th Street in Long Island City, Queens.
To finance the purchase, United Construction & Development Group through the entity Gs Tower LLC as borrower signed a acquisition loan with lender Bank of China valued at $23 million for the two industrial buildings.
The deal closed on January 26, 2022 and was recorded on February 11, 2022.
The two properties have 76,000 square feet of built space and 79,588 square feet of additional air rights for a total buildable of 155,664 square feet according to PincusCo analysis of city data. The sale price per built square foot is $527 and the price per buildable square foot is $257 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 Avrohom Becker was Avrohom Becker. The signatory for United Construction & Development Group was Jiashu Chris Xu.
Prior to this transaction, the buyer United Construction & Development Group purchased four properties in four transactions for a total of $26.1 million and had not sold any properties over the past 24 months.
The seller Avrohom Becker had not purchased any other properties and had not sold any properties over the same time period.
Out of the two properties, one with a total of 76,000 square feet of built space generated revenue of $790,529 per year.
Over the past five years, there have been 2 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were 2 renovation/alteration projects (A2) applied for with a total estimated value of $131,000. One of the projects were to change the building from a COM to a F-1 and were permitted on September 18, 2009.
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.
On the tax block, the majority, or 85 percent of the 105,537 square feet of built space are industrial buildings, with residential elevator buildings next occupying 15 percent of the space.
Within a 400-foot radius of 42-61 24th Street, PincusCo identified six commercial real estate items of interests occurred over the past 24 months.
Of those six items, one was in new building development. It was a new building permit application filed on February 25, 2021 for a 82,941-square-foot R-1 building with 121 residential units at 25-10 42nd Road.
Of those six items, one was for major renovation including a certificate of occupancy change. It was a permit issued on December 15, 2020 for the $5.6 million renovation of 151,180-square-foot B building with N/A residential units at 43-10 23rd Street.
Of those six items, four were loans above $5 million totaling $21.8 million. The most recent of the four was Judy Chang which borrowed $5 million from International Bank of Chicago secured by the 0-square-foot development site (V1) on 42-39 Crescent Street and seven other properties on September 28, 2021.
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