Fereydoun Khalili pays $3M to Walgreens for retail in South Ozone Park

Fereydoun Khalili through the entity Yonah 26 LLC paid $3 million to Walgreens through the entity Walgreen Eastern Co., Inc. for the retail building (K2) at 119-10 Liberty Avenue in South Ozone Park, Queens. The expected use is cash flowing.
The deal closed on December 2, 2024 and was recorded on December 19, 2024. The property has 8,442 square feet of built space and 9,681 square feet of additional air rights for a total buildable of 18,153 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $352 and the price per buildable square foot is $163 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 6, 2018, for $1.8 million. The signatory for Walgreen Co. was Richard N. Steiner. The signatory for Fereydoun Khalili was Fereydoun Khalili. The contract date was November 6, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Fereydoun Khalili purchased two properties in two transactions for a total of $2.4 million and has no record it sold any properties over the past 24 months.
The seller Walgreen Co. purchased one property in one transaction for a total of $9.2 million and sold three properties in three transactions for a total of $22.7 million over the same time period.

The property

The mixed-use building in South Ozone Park has 8,442 square feet of built space and 9,681 square feet of additional air rights for a total buildable of 18,153 square feet according to a PincusCo analysis of city data. The parcel has frontage of 61 feet and is 94 feet deep with a total lot size of 6,051 square feet. The lot is irregular. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.5 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 $4,650 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 $1 million on this tax lot.

The neighborhood

In South Ozone Park, The bulk, or 27 percent of the 6.3 million square feet of commercial built space are mixed-use buildings, with specialty buildings next occupying 26 percent of the space. In sales, South Ozone Park has near average sales volume among other neighborhoods with $270.2 million in sales volume in the last two years and is the 7th highest in Queens. For development, South Ozone Park has had very little major development activity relative to other neighborhoods.It had 733,362 square feet of commercial and multi-family construction under development in the last two years, which represents 12 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the nine commercial properties representing 13,910 square feet of the 34,534 square feet. The two identified owners are Faramaz Khalili and Fereydoun Khalili.
There are no active new building construction projects on this tax block.

The majority, or 96 percent of the 34,534 square feet of built space are mixed-use buildings, with office buildings next occupying 4 percent of the space.

The seller

The PincusCo database currently indicates that Walgreen Co. owned at least two commercial properties in New York City with 23,482 square feet and a city-determined market value of $6.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are retail properties. The bulk, or 62 percent of the built space, is in Bronx, with Brooklyn next at 38 percent of the space.

The buyer

The PincusCo database currently indicates that Fereydoun Khalili owned at least 32 commercial properties with 25 residential units in New York City with 177,273 square feet. The portfolio has $29.5 million in debt, borrowed from First National Bank of Long Island. Within the portfolio, the bulk are retail. All but one are located in Queens, with one in Brooklyn.

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