Haimo Zhong pays $4.6M for development in Jamaica

Haimo Zhong through the entity 1010 Archer Ave LLC paid $4.6 million to Hector Florimon through the entity F&P Development Corp. for the development site (V1) at 149-21 Archer Avenue in Jamaica, Queens.
On the lot, there was one new building construction project for a 68-unit, 31,812 square-foot R-1 building. The project was submitted by A&R Properties Group and filed by Joshua Asherian with plans filed June 23, 2016 and it has not been permitted yet.

The deal closed on January 3, 2024 and was recorded on January 17, 2024. The property has zero square feet of built space and 48,270 square feet of additional air rights for a total buildable of 48,270 square feet according to a PincusCo analysis of city data. The sale price per buildable square foot is $95 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 20, 2018, for $3.6 million. The signatory for Hector Florimon was Hector Florimon. The signatory for Haimo Zhong was Haimo Zhong. The contract date was June 7, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Haimo Zhong purchased three properties in three transactions for a total of $13.6 million and has no record it sold any properties over the past 24 months.
The seller Hector Florimon had not purchased any other properties and sold two properties in two transactions for a total of $7.3 million over the same time period.

The property

The parcel has frontage of 49 feet and is 81 feet deep with a total lot size of 6,419 square feet. The lot is irregular. The zoning is C6-3 which allows for up to 6 times floor area ratio (FAR) for commercial and up to 7.52 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $886,000.

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.

The neighborhood

In Jamaica, The bulk, or 34 percent of the 29.2 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 14 percent of the space. In sales, Jamaica has near average sales volume among other neighborhoods with $312.9 million in sales volume in the last two years and is the 6th highest in Queens. For development, Jamaica has 3.8 times the average amount of major developments relative to other neighborhoods and is the 3rd highest in Queens. It had 3.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 13 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the 10 commercial properties representing 143,278 square feet of the 178,160 square feet. The two identified owners are Pridehospitalitygroup and Nuri-Dorothy Kohen.
On the tax block, there were two new building construction projects totaling 42,859 square feet. The largest is a 68-unit, 31,812 square-foot hotel/dormitory/shelter (R-1) building submitted by A&R Properties Group and filed by Joshua Asherian with plans filed June 23, 2016 and it has not been permitted yet. The second largest is a 283-unit, 11,047 square-foot hotel/dormitory/shelter (R-1) building submitted by Jai Patel with plans filed August 21, 2015 and permitted May 16, 2016.

The majority, or 79 percent of the 178,160 square feet of built space are hotel buildings, with retail buildings next occupying 10 percent of the space.

The seller

The PincusCo database currently indicates that Hector Florimon owned at least one commercial property with two residential units in New York City with 5,680 square feet and a city-determined market value of $713,000. (Market value is typically about 50% of actual value.) The portfolio has $6 million in debt, borrowed from Spruce Capital. The portfolio consists of at least a single mixed-use property. It is located in Queens.

The buyer

The PincusCo database currently indicates that Haimo Zhong owned at least eight commercial properties in New York City with 59,279 square feet and a city-determined market value of $6 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 56 percent of the 59,279 square feet of built space are industrial properties, with mixed-use properties next occupying 37 percent of the space. The bulk, or 45 percent of the built space, is in Queens, with Brooklyn next at 37 percent of the space.

Direct link to Acris document. link