FedEx pays $50M for two industrial properties in Maspeth

FedEx through the entity Fedex Ground Package System, Inc. paid $50 million to Carolyn M. Carrano through the entity Carolyn M. Carrano, As Trustee for midblock industrial building at 55-80 48th Street in Maspeth, Queens and midblock industrial building at 55-70 48th Street in Maspeth, Queens.
The deal closed on April 14, 2022 and was recorded on April 27, 2022. The two properties have 22,935 square feet of built space and 214,240 square feet of additional air rights for a total buildable of 237,308 square feet according to PincusCo analysis of city data. The sale price per built square foot is $2,180 and the price per buildable square foot is $210 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 Carolyn M. Carrano was Fred J. Carillo and Carolyn M. Carrano. The signatory for FedEx was William F. Connor. Traded NY first reported the sale. Matthew Diana of DY Realty Group was the broker, according to the report.

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 55-80 48th Street.

Prior sales and revenue

The two properties with a total of 22,935 square feet of built space generated revenue of $1.1 million per year or $48 per square foot.

The property

The 55-80 48th Street parcel has frontage of 275 feet and is 220 feet deep with a total lot size of 58,326 square feet. The lot is irregular. The zoning is M3-1 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $2.7 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received $50 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 $5 million on this tax lot.

The neighborhood

In Maspeth, the bulk, or 46 percent of the 38.7 million square feet of commercial built space are 1-4 family buildings, with industrial buildings next occupying 39 percent of the space. In sales, Maspeth has 1.9 times the average sales volume among other neighborhoods with $538 million in sales volume in the last two years and is the 3rd highest in Queens. For development, Maspeth has 1.9 times the average amount of major developments relative to other neighborhoods and is the 7th highest in Queens. It had 1.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

There are three active new building construction projects totaling 403,338 square feet. The largest is a 158,784-square-foot S-1 building developed by Paul Pastore with plans filed July 30, 2021 and it has not been permitted yet. The second largest is a 122,277-square-foot S-2 building developed by Matthew Berardi with plans filed February 17, 2017 and it has not been permitted yet.

The majority, or 100 percent of the 205,515 square feet of built space are industrial buildings, with specialty buildings next occupying 0 percent of the space.

Surrounding

Within a 400-foot radius of 55-80 48th Street, PincusCo identified one commercial real estate item of interests occurred over the past 24 months.
It was a new building permit application filed on July 30, 2021 for a 293,148-square-foot S-1 building at 55-90 48th Street.

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