Developer Zehao Fang pays $3.2M for 9-unit LIC dev site

The developer Zehao Fang, who is also known by the name Jack Fang, through the entity CMX Alliance LLC paid $3.2 million to Carlo Bordone through the entity Cgb 27 LLC for the development parcel (V1) at 40-21 27th Street in Long Island City, Queens.

On the lot, there is one active new building construction project for a nine-unit, 14,876 square-foot R-2 building. The project was submitted by Carlo Bordone with plans filed August 24, 2017 and permitted May 6, 2019.
The deal closed on August 14, 2023 and was recorded on August 29, 2023. The property has zero square feet of built space and 6,805 square feet of additional air rights for a total buildable of 6,805 square feet according to a PincusCo analysis of city data. The sale price per buildable square foot is $477 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 seller bought the property on August 31, 2016, for $1.5 million. The signatory for Carlo Bordone was Carlo Bordone. The signatory for Zehao Fang was Zehao Fang. The contract date was June 21, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Zehao Fang had purchased any other properties and sold one property in one transactions for a total of $2 million over the past 24 months.
The seller Carlo Bordone had not purchased any other properties and had not sold any properties over the same time period.

The property

The parcel has frontage of 50 feet and is 100 feet deep with a total lot size of 5,041 square feet. The zoning is M1-2/R5B which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 1.35 times FAR for residential. The city-designated market value for the property in 2022 is $797,000.

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 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 the 8th highest sale turnover among other neighborhoods in the city with $1.9 billion in sales volume in the last two years. For development, Long Island City is the 4th most active neighborhood among other neighborhoods. It had 8.3 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 the tax block, there were three new building construction projects totaling 27,087 square feet. The largest is a nine-unit, 14,876 square-foot residential (R-2) building submitted by Carlo Bordone with plans filed August 24, 2017 and permitted May 6, 2019. The second largest is a three-unit, 7,293 square-foot residential (R-2) building submitted by Larry Cerullo with plans filed January 14, 2016 and it has not been permitted yet.

The majority, or 67 percent of the 88,201 square feet of built space are office buildings, with industrial buildings next occupying 20 percent of the space.

The buyer

The PincusCo database currently indicates that Zehao Fang owned at least two commercial properties with 17 residential units in New York City with 22,194 square feet and a city-determined market value of $5.6 million. (Market value is typically about 50% of actual value.) The portfolio has $6.5 million in debt, borrowed from Amalgamated Bank and 37-44 Associates, Inc.. Within the portfolio, the bulk, or 100 percent of the 22,194 square feet of built space are elevator properties, with development properties next occupying 0 percent of the space. They are all located in Queens.

Direct link to Acris document. link