Hang Dong Zhang pays $13M for retail, office dev site in Flushing

Hang Dong Zhang through the entity Gbz 39 Realty LLC paid $13 million to Shang Shen Chen, Susan Showsan Lin, Henry Lo, Paul Lo, and Robert Lo through the entity Linwood Holdings, LLC for the development site at 133-45 39th Avenue in Flushing, Queens.

On the lot, there is one active new building construction project, Q00951994, for an eight-story, 33,875-square-foot mixed-use building with space for a restaurant use, day care, medical offices, offices and parking. The project was submitted by Linzhong Zhuo and filed by Linzhong Zhuo with plans filed October 24, 2023 and it has not been permitted yet.

The deal closed on January 18, 2024 and was recorded on February 8, 2024. The property is vacant with a total buildable of 17,345 square feet according to a PincusCo analysis of city data. The sale price per buildable square foot is $749 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 Shang Shen Chen, Susan Showsan Lin, Henry Lo, Paul Lo, and Robert Lo was Shang Shen Chen, Susan Showsan Lin, Henry Lo, Paul Lo, and Robert Lo. The signatory for Hang Dong Zhang was Hang Dong Zhang. The contract date was July 14, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Hang Dong Zhang purchased two properties in two transactions for a total of $3.5 million and has no record it sold any properties over the past 24 months.
The seller Shang Shen Chen had not purchased any other properties and had not sold any properties over the same time period. The 4,961-square-foot property generated revenue of $244,677 or $49 per square foot, according to the most recent income and expense figures.

The property

The parcel has a total buildable of 17,345 square feet according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 142 feet deep with a total lot size of 7,138 square feet. The lot is irregular. The zoning is C4-2 which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 2.43 times FAR for residential. The city-designated market value for the property in 2022 is $1.3 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 not received any significant violations in the last year.

The neighborhood

In Flushing, The bulk, or 45 percent of the 37.7 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 20 percent of the space. In sales, Flushing has 2.7 times the average sales volume among other neighborhoods with $791.9 million in sales volume in the last two years and is the 2nd highest in Queens. For development, Flushing has 2.2 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Queens. It had 2.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the 22 commercial properties representing 47,875 square feet of the 137,513 square feet. The two identified owners are Jin Xiao Chen and A&E Real Estate Holdings.
On the tax block, there were six new building construction projects totaling 2,868,248 square feet. The largest is a 397-unit, 752,283 square-foot residential (R-2) building submitted by F&T Group and filed by Sunny Chiu with plans filed August 29, 2014 and it has not been permitted yet. The second largest is a 338-unit, 681,399 square-foot hotel/dormitory/shelter (R-1) building submitted by F&T Group and filed by Sunny Chiu with plans filed March 13, 2015 and permitted January 25, 2019.

The majority, or 31 percent of the 137,513 square feet of built space are walkup buildings, with mixed-use buildings next occupying 30 percent of the space.

The buyer

The PincusCo database currently indicates that Hang Dong Zhang owned at least eight commercial properties with two residential units in New York City with 69,612 square feet and a city-determined market value of $17.6 million. (Market value is typically about 50% of actual value.) The portfolio has $10.2 million in debt, borrowed from Popular Bank and Amerasia Bank. Within the portfolio, the bulk, or 76 percent of the 69,612 square feet of built space are hotel properties, with retail properties next occupying 9 percent of the space. The bulk, or 55 percent of the built space, is in Brooklyn, with Queens next at 45 percent of the space.

Direct link to Acris document. link