Daniel Group pays $7.5M for dev site in Jamaica

Daniel Group through the entity Throop LLC paid $7.5 million to Hemalatha Sabapathy through the entity Velan Partners, L.P. for the retail buildings (K1) at 175-06 Hillside Avenue, at 175-06 175th Street and 87-17 175th Street, as well as adjacent parking space, in Jamaica, Queens. The buyer plans to redevelop the site, according to a source familiar with the transaction.
The deal closed on March 20, 2024 and was recorded on March 26, 2024. The six properties have 8,385 square feet of built space and 81,569 square feet of additional air rights for a total buildable of 89,972 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $894 and the price per buildable square foot is $83 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 Hemalatha Sabapathy was Hemalatha Sabapathy. The signatory for Daniel Group was Ilan Cohen. The contract date was October 19, 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 175-06 Hillside Avenue.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Daniel Group purchased 13 properties in three transactions for a total of $9.4 million and sold five properties in five transactions for a total of $21.9 million over the past 24 months.
The seller Hemalatha Sabapathy had not purchased any other properties and had not sold any properties over the same time period.

The property

The retail buildings in Jamaica have 8,385 square feet of built space and 81,569 square feet of additional air rights for a total buildable of 89,972 square feet according to a PincusCo analysis of city data. The lot is irregular. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.9 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 $425 in OATH penalties in the last year.

Development

For the tax lot buildings, one out of the six buildings received a initial certificate of occupancy in the last ten years. 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 Jamaica, The bulk, or 34 percent of the 29.2 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 14 percent of the space. In sales, Jamaica has near average sales volume among other neighborhoods with $301.9 million in sales volume in the last two years and is the 6th highest in Queens. For development, Jamaica has 3.1 times the average amount of major developments relative to other neighborhoods and is the 2nd highest in Queens. It had 3 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space.

The block

On the tax block of 175-06 Hillside Avenue, PincusCo has identified the owners of one of the 13 commercial properties representing 11,520 square feet of the 135,050 square feet. The identified owner is Carmelle Bellefleur.
There are no active new building construction projects on this tax block.

The majority, or 75 percent of the 135,050 square feet of built space are elevator buildings, with office buildings next occupying 9 percent of the space.

The buyer

The PincusCo database currently indicates that Daniel Group owned at least 36 commercial properties with 343 residential units in New York City with 333,779 square feet and a city-determined market value of $64.6 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 53 percent of the 333,779 square feet of built space are elevator properties, with walkup properties next occupying 30 percent of the space. The bulk, or 35 percent of the built space, is in Queens, with Brooklyn next at 32 percent of the space.

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