East End Capital pays $41.7M to Empire Office for two industrial buildings in Sunnyside

East End Capital through the entity Sunnyside Studios Owner, LLC paid $41.7 million to Empire Office through the entity Valhalla 2020 LLC for industrial building at 48-02 48th Avenue in Sunnyside, Queens and industrial building at 48-15 50th Avenue in Sunnyside, Queens.

To finance the acquisition, East End Capital through the entity Sunnyside Studios Owner, LLC as borrower signed an acquisition loan with lender Calmwater Capital through the entity Cre Credit Fund Iv Originations, LLC valued at $34 million.

The deal closed on January 18, 2022 and was recorded on February 3, 2022.
The two properties have 126,533 square feet of built space and 94,184 square feet of additional air rights for a total buildable of 221,222 square feet according to PincusCo analysis of city data. The sale price per built square foot is $329 and the price per buildable square foot is $188 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 Empire Office was Peter Gaslow. The signatory for East End Capital was Jonathan Yormak.

The two properties with a total of 126,533 square feet of built space generated revenue of $2.2 million per year or $17 per square foot. The sale price per square foot was $330.

Over the past five years, there has been one NYC Department of Buildings permit application filed for this parcel valued at more than $20,000.
Jonathan Yormak is principal and founder of East End Capital.  Cushman & Wakefield had a listing to lease the property.
In Sunnyside, the bulk, or 35 percent of the 23.5 million square feet of 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.
On the tax block, the majority, or 85 percent of the 149,231 square feet of built space are industrial buildings, with 1-4 family buildings next occupying 15 percent of the space.
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