City schools pays $18M for industrial in Richmond Hill

NYC School Construction Authority paid $18 million to Marc Beige through the entity Beige Family Realty Company LLC for the industrial building (F5) at 120-08 Jamaica Avenue in Richmond Hill, Queens, industrial building (F4) at 120-20 Jamaica Avenue in Richmond Hill, Queens, and industrial building (G7) at 120-30 Jamaica Avenue in Richmond Hill, Queens.
The deal closed on October 12, 2023 and was recorded on October 18, 2023. The four properties have 46,900 square feet of built space and 115,583 square feet of additional air rights for a total buildable of 162,470 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $383 and the price per buildable square foot is $110 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 Marc Beige was Marc P. Beige. The signatory for NYC School Construction Authority was Edward Perez. The contract date was January 5, 2023.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 120-08 Jamaica Avenue.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer NYC School Construction Authority purchased 17 properties in 10 transactions for a total of $181.8 million and has no record it sold any properties over the past 24 months.
The seller Marc Beige had not purchased any other properties and had not sold any properties over the same time period.

The property

The industrial properties in Richmond Hill has 46,900 square feet of built space and 115,583 square feet of additional air rights for a total buildable of 162,470 square feet according to a PincusCo analysis of city data. The parcel has frontage of 131 feet and is 139 feet deep with a total lot size of 16,947 square feet. The lot is irregular. The zoning is M1-5 which allows for up to 5 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $2.3 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received one DOB violation and $2,050 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 $1 million on this tax lot.

The neighborhood

In Richmond Hill, The bulk, or 26 percent of the 6.4 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 20 percent of the space. In sales, Richmond Hill has had very little sales volume relative to other neighborhoods with $109.8 million in sales volume in the last two years. For development, Richmond Hill has had very little major development activity relative to other neighborhoods.It had 154,774 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.

The block

On the tax block of 120-08 Jamaica Avenue, PincusCo has identified the owners of four of the 13 commercial properties representing 237,735 square feet of the 310,208 square feet. The largest owner is Rodolfo Fuertes, followed by LIRR and then Kimco Realty.
There are no active new building construction projects on this tax block.

The majority, or 100 percent of the 310,208 square feet of built space are industrial buildings, with specialty buildings next occupying 0 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.

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