Haimo Zhong pays $3.8M for industrial in Longwood

Haimo Zhong through the entity 590 Wales Ave LLC paid $3.8 million to Dean Papas through the entity 601 Wales Avenue Corp. for the industrial building (E9) at 590 Wales Avenue in Longwood, Bronx.
The deal closed on June 30, 2023 and was recorded on July 18, 2023. The property has 10,550 square feet of built space and 25,717 square feet of additional air rights for a total buildable of 36,257 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $355 and the price per buildable square foot is $103 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 Dean Papas was Dean J. Papas. The signatory for Haimo Zhong was Haimo Zhong.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Haimo Zhong purchased six properties in three transactions for a total of $14.5 million and has no record it sold any properties over the past 24 months.
The seller Dean Papas had not purchased any other properties and had not sold any properties over the same time period. The 10,550-square-foot property generated revenue of $119,091 or $11 per square foot, according to the most recent income and expense figures.

The property

The industrial building in Longwood has 10,550 square feet of built space and 25,717 square feet of additional air rights for a total buildable of 36,257 square feet according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 105 feet deep with a total lot size of 10,540 square feet. The zoning is R7-1 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $660,000.

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 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 $1 million on this tax lot.

The neighborhood

In Longwood, The bulk, or 44 percent of the 22.3 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 27 percent of the space. In sales, Longwood has had very little sales volume relative to other neighborhoods with $222.6 million in sales volume in the last two years. For development, Longwood has had very little major development activity relative to other neighborhoods.It had 828,790 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

On this tax block, PincusCo has identified the owners of nine of the 15 commercial properties representing 163,428 square feet of the 257,267 square feet. The identified owner is Leeds Associates.
On the tax block, there was one new building construction project filed totaling 27,374 square feet. It is a 35-unit, 27,374 square-foot residential (R-2) building submitted by Galaxy General Contracting and filed by Steve Zervoudis with plans filed January 28, 2020 and it has not been permitted yet.

The majority, or 75 percent of the 257,267 square feet of built space are walkup buildings, with specialty buildings next occupying 21 percent of the space.

The buyer

The PincusCo database currently indicates that Haimo Zhong owned at least seven commercial properties in New York City with 48,729 square feet and a city-determined market value of $5.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 46 percent of the 48,729 square feet of built space are industrial properties, with mixed-use properties next occupying 46 percent of the space. The bulk, or 54 percent of the built space, is in Queens, with Brooklyn next at 46 percent of the space.

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