Contracting firm S. Donadic Inc. pays $7.5M for industrial in Sunnyside

The contracting firm S. Donadic Inc. paid $7.5 million to Daniel Racan through the entity 48th Avenue Associates, LLC for the industrial building at 38-16 48th Avenue in Sunnyside, Queens.
The deal closed on June 10, 2022 and was recorded on June 23, 2022. The property has 12,700 square feet of built space and 1,260 square feet of additional air rights for a total buildable of 14,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $590 and the price per buildable square foot is $535 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 Daniel Racan was Daniel Racan. The signatory for S. Donadic Inc. was Steve Donadic and Maria Donadic. The buyer is a construction management firm focusing on high-end residential.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer S. Donadic Inc. had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Daniel Racan had not purchased any other properties and had not sold any properties over the same time period. The 12,700-square-foot property generated revenue of $198,193 or $16 per square foot, according to the most recent income and expense figures.

The property

The 38-16 48th Avenue parcel has frontage of 140 feet and is 100 feet deep with a total lot size of 14,000 square feet. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $747,000.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has not received any significant violations 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 Sunnyside, the bulk, or 35 percent of the 23.5 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 19 percent of the space. In sales, Sunnyside has had very little sales volume relative to other neighborhoods with $174.7 million in sales volume in the last two years. For development, Sunnyside has had very little major development activity relative to other neighborhoods.It had 208,722 square feet of commercial and multi-family construction under development in the last two years, which represents 0.89 percent of the neighborhood’s built space.

The block

There are no active new building construction projects on this tax block.

The majority, or 73 percent of the 103,679 square feet of built space are 1-4 family buildings, with industrial buildings next occupying 27 percent of the space.

The seller

The PincusCo database currently indicates that Daniel Racan owned at least one commercial property with 10,836 square feet and a city-determined market value of $1 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single walkup property. It is located in Bronx.

Surrounding

Within a 400-foot radius of 38-16 48th Avenue, PincusCo identified one commercial real estate item of interests occurred over the past 24 months.
It was a permit issued on May 19, 2021 for the $724,200 renovation of 3,996-square-foot R-2 building with four residential units at 48-21 39th Street.

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