Gustavo Rodriguez pays $9.6M to AEM Partners for 46-unit elevator building in Elmhurst

Gustavo Rodriguez through the entity 40-11 72 LLC paid $9.6 million to AEM Partners through the entity AEM Partners, LLC for the corner 46-unit residential elevator building at 40-11 72nd Street in Elmhurst, Queens..
The deal closed on March 8, 2022 and was recorded on March 25, 2022.The property has 33,064 square feet of built space and 750 square feet of additional air rights according to PincusCo analysis of city data. The sale price per built square foot is $290 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 AEM Partners was Michael Mirotznik. The signatory for Gustavo Rodriguez was Gustavo Rodriguez.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Gustavo Rodriguez had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller AEM Partners had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes David Cebollero, head officer and Jim Bradley, agent. The business entities are Bpc Management Corp and Aem Partners,Llc.

The property

The 40-11 72nd Street parcel has frontage of 75 feet and is 122 feet deep with a total lot size of 13,780 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

The properties were not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the properties have received $625 in ECB penalties and $675 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 Elmhurst, the bulk, or 36 percent of the 38.7 million square feet of commercial built space are 1-4 family buildings, with residential elevator buildings next occupying 31 percent of the space. In sales, Elmhurst has had very little sales volume relative to other neighborhoods with $127.2 million in sales volume in the last two years. For development, Elmhurst has had very little major development activity relative to other neighborhoods.It had 723,070 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other residential elevator buildings in the past 12 months.

The block

On the tax block of 40-11 72nd Street, PincusCo has identified the owners of two of the 13 commercial properties representing 86,178 square feet of the 209,929 square feet. The two identified owners are Pinnacle Group and Werber Management. There are no active new building construction projects on this tax block.

The majority, or 35 percent of the 278,718 square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 30 percent of the space.

Surrounding

Within a 400-foot radius of 40-11 72nd Street, Pincusco identified four commercial real estate items of interests occurred over the past 24 months.
One of those four items was a sale which Werber Management bought the 21,486-square-foot, four-unit retail building (K1) on 72-11 Roosevelt Avenue for $24 million from Delwar Hussain on May 29, 2020.
Of those four items, three were loans above $5 million totaling $25.6 million. The most recent of the three was Pinnacle Group which borrowed $7 million from New York Community Bank secured by the 55,560-square-foot, 63-unit rental (C1) on 72-15 41st Avenue on February 9, 2022.

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