EM Group pays $17M for large dev site in Astoria

Edion Mecaj’s EM Group through the entity Broadway Partners Realty LLC paid $17 million to Damien Smith and Jack Caliendo through the entity 12 Street & Broadway LLC for the industrial building (G1) at 11-06 Broadway in Astoria, Queens. Edion Mecaj closed in December 2023 on the $6.5 million purchase of the other half of this entire city block.

On the lot, there is one active new building construction project for a 148-unit, 104,890 square-foot residential (R-2) building. The project was submitted by Damien Smith with plans filed March 2, 2022 and permitted May 19, 2022.

The deal closed on February 2, 2024 and was recorded on February 6, 2024. The property has 14,800 square feet of built space and 76,246 square feet of additional air rights for a total buildable of 91,040 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,148 and the price per buildable square foot is $186 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 March 10, 2021, for $7 million. The signatory for Damien Smith and Jack Caliendo was Damien Smith and Jack Caliendo. The signatory for EM Group was Edion Mecaj. The contract date was December 6, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer EM Group purchased one property in one transaction for a total of $6.7 million and has no record it sold any properties over the past 24 months.
The seller Damien Smith had not purchased any other properties and sold three properties in three transactions for a total of $17.3 million over the same time period. The 14,800-square-foot property generated revenue of $254,411 or $17 per square foot, according to the most recent income and expense figures.

The property

The industrial building in Astoria has 14,800 square feet of built space and 76,246 square feet of additional air rights for a total buildable of 91,040 square feet according to a PincusCo analysis of city data. The parcel has frontage of 227 feet and is 100 feet deep with a total lot size of 22,760 square feet. The zoning is M1-4/R7A which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 4 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.1 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 $300 in OATH penalties in the last year.

The neighborhood

In Astoria, The bulk, or 36 percent of the 40.2 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 31 percent of the space. In sales, Astoria has 2.3 times the average sales volume among other neighborhoods with $712.5 million in sales volume in the last two years and is the 3rd highest in Queens. For development, Astoria has 3.3 times the average amount of major developments relative to other neighborhoods and is the 3rd highest in Queens. It had 3.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the two commercial properties representing 14,800 square feet of the 14,800 square feet. The two identified owners are Edion Mecaj and Damien Smith.
On the tax block, there was one new building construction project filed totaling 104,890 square feet. It is a 148-unit, 104,890 square-foot residential (R-2) building submitted by Damien Smith with plans filed March 2, 2022 and permitted May 19, 2022.

All properties are industrial.

The seller

The PincusCo database currently indicates that Jack Caliendo owned at least three commercial properties with 30 residential units in New York City with 27,875 square feet and a city-determined market value of $3.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are walkup properties. The bulk, or 40 percent of the built space, is in Brooklyn, with Bronx next at 37 percent of the space.
The PincusCo database currently indicates that Damien Smith owned at least two commercial properties with 59 residential units in New York City with 14,800 square feet and a city-determined market value of $1.4 million. (Market value is typically about 50% of actual value.) The portfolio has $33 million in debt, borrowed from Valley National Bank. Within the portfolio, the bulk, or 100 percent of the 14,800 square feet of built space are industrial properties, with development properties next occupying 0 percent of the space. They are all located in Queens.

The buyer

The PincusCo database currently indicates that EM Group owned at least one commercial property with 22 residential units in New York City with 21,042 square feet and a city-determined market value of $1.2 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single elevator property. It is located in Bronx.

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