City pays $38M to Madison Realty Capital for school condo in Maspeth

NYC School Construction Authority through the entity New York City School Construction Authority paid $38 million to Madison Realty Capital through the entity Qb Development Owner LLC for the 79,682-square-foot school condominium unit at 46-10 70th Street in Maspeth, Queens.
The deal closed on May 1, 2023 and was recorded on September 25, 2023.

The price was $477 per square foot. The other two condominium units in the building are a rental building and a garage.
The signatory for Madison Realty Capital was David Speiser. The signatory for NYC School Construction Authority was Tina Isselbacher and Nina Kubota. The contract date was December 3, 2020.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer NYC School Construction Authority purchased 16 properties in nine transactions for a total of $143.8 million and has no record it sold any properties over the past 24 months.
The seller Madison Realty Capital purchased 10 properties in five transactions for a total of $212.3 million and sold 12 properties in eight transactions for a total of $52.8 million over the same time period.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has not received any significant violations in the last year.

The block

On this tax block, PincusCo has identified the owners of three of the three commercial properties representing 471,597 square feet of the 471,597 square feet. The two identified owners are Madison Realty Capital and LIRR.
On the tax block, there were two new building construction projects totaling 849,330 square feet. The largest is a 183-unit, 424,665 square-foot residential (R-2) building submitted by Madison Realty Capital and filed by Allen Konstam with plans filed June 14, 2019 and permitted January 28, 2021. The second largest is a 295-unit, 424,665 square-foot residential (R-2) building submitted by Madison Realty Capital and filed by Allen Konstam with plans filed June 1, 2019 and permitted December 13, 2021.

The majority, or 100 percent of the 471,597 square feet of built space are elevator buildings, with specialty buildings next occupying 0 percent of the space.

The seller

The PincusCo database currently indicates that Madison Realty Capital owned at least 62 commercial properties with 2,652 residential units in New York City with 2,706,910 square feet and a city-determined market value of $375.4 million. (Market value is typically about 50% of actual value.) The portfolio has $1 billion in debt, with top three lenders as Signature Bank, Athene Annuity And Life Company, and FTLP LLC respectively. Within the portfolio, the bulk, or 77 percent of the 2,706,910 square feet of built space are elevator properties, with walkup properties next occupying 13 percent of the space. The bulk, or 36 percent of the built space, is in Queens, with Brooklyn next at 33 percent of the space.

The buyer

The PincusCo database currently indicates that Nyc School Construction Authority owned at least 16 commercial properties in New York City with 237,360 square feet and a city-determined market value of $57 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 55 percent of the 237,360 square feet of built space are office properties, with specialty properties next occupying 29 percent of the space. The bulk, or 84 percent of the built space, is in Queens, with Brooklyn next at 10 percent of the space.

Direct link to Acris document. link