Grocer pays $10.5M to Allied Realty for location it occupies in South Ozone Park

Grocer Desh Deepak Bhardwaj through the entity 113 Liberty Reality LLC paid $10.5 million to Allied Realty & Development through the entity Epsom LLC for the mixed-use building (K2) at 113-18 Liberty Avenue in South Ozone Park, Queens. The expected use is cash flowing. Desh Deepak Bhardwaj is a co-owner of the grocery store Apna Bazar, which is a tenant in the building. The expected use is owner-occupied.
The deal closed on August 15, 2024 and was recorded on August 26, 2024. The property has 22,500 square feet of built space and 10,330 square feet of additional air rights for a total buildable of 32,796 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $466 and the price per buildable square foot is $320 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 September 3, 2013, for $5.7 million. The signatory for Allied Realty & Development was Bahram Hakakian. The signatory for Desh Deepak Bhardwaj was Desh Deepak Bhardwaj. The contract date was May 16, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Desh Deepak Bhardwaj had purchased any other properties and has no record it sold any properties over the past 24 months. However, Desh Deepak Bhardwaj in April 2022, paid $4.7 million for another Apna Bazar location in Floral Park.
The seller Allied Realty & Development purchased one properties in one transaction for a total of $10.2 million and sold two properties in two transactions for a total of $5 million over the same time period.

The property

The mixed-use building in South Ozone Park has 22,500 square feet of built space and 10,330 square feet of additional air rights for a total buildable of 32,796 square feet according to a PincusCo analysis of city data. The parcel has frontage of 124 feet and is 131 feet deep with a total lot size of 16,398 square feet. The lot is irregular. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. 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 property for the past 24 months. In addition, according to city public data, the property has received $2,640 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 $270.1 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 478,159 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 one of the five commercial properties representing 22,500 square feet of the 30,440 square feet. The identified owner is Allied Realty & Development.
There are no active new building construction projects on this tax block.

The majority, or 92 percent of the 30,440 square feet of built space are mixed-use buildings, with retail buildings next occupying 8 percent of the space.

The seller

The PincusCo database currently indicates that Allied Realty & Development owned at least 45 commercial properties with 426 residential units in New York City with 498,974 square feet and a city-determined market value of $95.5 million. (Market value is typically about 50% of actual value.) The portfolio has $39.9 million in debt, with top three lenders as First Republic Bank, Peapack-Gladstone Bank, and Teachers Federal Credit Union respectively. Within the portfolio, the bulk, or 51 percent of the 498,974 square feet of built space are walkup properties, with retail properties next occupying 25 percent of the space. The bulk, or 69 percent of the built space, is in Manhattan, with Brooklyn next at 14 percent of the space.

The buyer

The PincusCo database currently indicates that Desh Deepak Bhardwaj owned at least three commercial properties with three residential units in New York City with 18,258 square feet and a city-determined market value of $3.5 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 65 percent of the 18,258 square feet of built space are mixed-use properties, with retail properties next occupying 35 percent of the space. They are all located in Queens.

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