Hackman Capital pays $5M to Teamsters local for office in LIC, adds to Silvercup holdings

Hackman Capital Partners through the entity Silvercup Acquisition Company, LLC paid $5 million to the Teamsters affiliate Delivery and Warehouse Employees Union Local 804 for the office building (O2) at 34-21 Review Avenue in Long Island City, Queens.
The deal closed on September 21, 2022 and was recorded on September 28, 2022.The property has 10,200 square feet of built space and 73,089 square feet of additional air rights for a total buildable of 83,245 square feet according to PincusCo analysis of city data. The sale price per built square foot is $490 and the price per buildable square foot is $60 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 Delivery and Warehouse Employees Union Local 804 was Ronald Carey and Antonino Rosciglione. The signatory for Hackman Capital Partners was Brent Iloulian.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Hackman Capital Partners purchased 17 properties in seven transactions for a total of $401.2 million and has no record it sold any properties over the past 24 months.
The seller Delivery and Warehouse Employees Union Local 804 had not purchased any other properties and had not sold any properties over the same time period. The 10,200-square-foot property generated revenue of $273,258 or $27 per square foot, according to the most recent income and expense figures.

The property

The 34-21 Review Avenue parcel has frontage of 128 feet and is 135 feet deep with a total lot size of 16,649 square feet. The lot is irregular. The zoning is M1-3 which allows for up to 5 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $928,000.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has not received any significant violations 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 Long Island City, the bulk, or 34 percent of the 63.3 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 32 percent of the space. In sales, Long Island City has the 9th highest sale turnover among other neighborhoods in the city with $1.7 billion in sales volume in the last two years. For development, Long Island City is the 3rd most active neighborhood among other neighborhoods. It had 9.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 14 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of one of the 11 commercial properties representing 4,375 square feet of the 195,862 square feet. The identified owner is Broadway Stages.
There are no active new building construction projects on this tax block.

The majority, or 75 percent of the 195,862 square feet of built space are industrial buildings, with office buildings next occupying 19 percent of the space.

The buyer

The PincusCo database currently indicates that Hackman Capital Partners owned at least 17 commercial properties in New York City with 730,356 square feet and a city-determined market value of $149.1 million. (Market value is typically about 50% of actual value.) The portfolio has $340 million in debt, borrowed from Deutsche Bank. Within the portfolio, the bulk, or 69 percent of the 730,356 square feet of built space are specialty properties, with office properties next occupying 20 percent of the space. The bulk, or 98 percent of the built space, is in Queens, with Bronx next at 2 percent of the space.

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