CW Realty Group signs 99-year lease valued at $9.7M with Kimco for LIC dev site

CW Realty Group through the entity 44 Drive GL LLC as tenant signed a ground lease valued at $9.7 million with landlord Kimco Realty through the entity Market Shop 1696, LLC covering the retail building (K1) at 21-02 44th Drive in Long Island City, Queens. The expected use is ground up development.
The deal closed on June 11, 2026 and was recorded on June 23, 2026. The property has 6,000 square feet of built space and 34,304 square feet of additional air rights for a total buildable of 40,334 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,610 and the price per buildable square foot is $239 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.)
Kimco Realty bought the property on December 27, 2012, for $3.6 million. The signatory for Kimco Realty was Alexis Y. Adams . The signatory for CW Realty Group was Cheskie Weisz . This is a 99-year ground lease lease. Kimco and CW Realty Group each have a right of first refusal to acquire the other’s interest. Traded reported previously.

CW Realty Group plans to develop an apartment building with 72 units or up to 99 units if it buys air rights.

Prior sales, articles and revenue

Prior to this transaction, PincusCo has records that the buyer CW Realty Group purchased four properties in three transactions for a total of $58.3 million and sold three properties in three transactions for a total of $15.8 million over the past 24 months.
The seller Kimco Realty had not purchased any other properties and had not sold any properties over the same time period. The 6,000-square-foot property generated revenue of $339,255 or $57 per square foot, according to the most recent income and expense figures.

The property

The retail building in Long Island City has 6,000 square feet of built space and 34,304 square feet of additional air rights for a total buildable of 40,334 square feet according to a PincusCo analysis of city data. The parcel has frontage of 67 feet and is 100 feet deep with a total lot size of 6,700 square feet. The city-designated market value for the property in 2022 is $2.6 million.

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 received $3,750 in ECB penalties and $2,600 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 Long Island City, The bulk, or 32 percent of the 60.1 million square feet of commercial built space are industrial buildings, with elevator buildings next occupying 31 percent of the space. In sales, Long Island City has 3.2 times the average sales volume among other neighborhoods with $1.1 billion in sales volume in the last two years and is the highest in Queens. For development, Long Island City is the 7th most active neighborhood among other neighborhoods. It had 8.6 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.

The block

On this tax block, PincusCo has identified the owners of five of the 10 commercial properties representing 35,984 square feet of the 128,762 square feet. The largest owner is Robert Tennenhouser , followed by Dong Hyun Kim and then Michael Gazal.
On the tax block, there was one new building construction project filed totaling 139,611 square feet. It is a 151-unit, 139,611 square-foot hotel/dormitory/shelter (R-1) building submitted by Gus Preponis with plans filed July 29, 2015 and permitted April 11, 2018.

The majority, or 63 percent of the 128,762 square feet of built space are hotel buildings, with walkup buildings next occupying 26 percent of the space.

The buyer

The PincusCo database currently indicates that Cw Realty Group owned at least 28 commercial properties with 367 residential units in New York City with 318,453 square feet and a PincusCo-determined asset value of $290.7 million. Within the portfolio, the bulk, or 45 percent of the 318,453 square feet of built space are elevator properties, with walkup properties next occupying 35 percent of the space. The bulk, or 92 percent of the built space, is in Brooklyn, with Manhattan next at 4 percent of the space.

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