Jackson Group pays $19.2M to Jenel Management for Jamaica retail

The Chehebar family’s Jackson Group through the entity Jackson Jamaica Opportunity LLC paid $19.2 million to Jenel Management through the entity 162-21 Jamaica, LLC for the mixed-use building (K3) at 162-21 Jamaica Avenue in Jamaica, Queens and the property (V1) at 89-66 163rd Street in Jamaica, Queens.
The deal closed on August 24, 2023 and was recorded on August 29, 2023. The two properties have 79,200 square feet of built space and 61,073 square feet of additional air rights for a total buildable of 140,308 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $243 and the price per buildable square foot is $137 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 Jenel Management was David Dushey. The signatory for Jackson Group was Gabriel Chehebar. The contract date was June 28, 2023. There was a $15 million loan on the property prior to the sale, and no records have been filed as of publication showing the debt either assigned or paid off. Jenel Management’s entity acquired title in January 1999 in a no-consideration transfer from Ralph Braha.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Jackson Group purchased three properties in three transactions for a total of $11 million and sold four properties in four transactions for a total of $27.6 million over the past 24 months.
The seller Jenel Management had not purchased any other properties and sold one property in one transaction for a total of $4.8 million over the same time period.

The property

The mixed-use building in Jamaica has 79,200 square feet of built space and 61,073 square feet of additional air rights for a total buildable of 140,308 square feet according to a PincusCo analysis of city data. The parcel has frontage of 90 feet and is 200 feet deep with a total lot size of 18,299 square feet. 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 $13.6 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received $3,000 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 $1 million on this tax lot.

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 $386.2 million in sales volume in the last two years and is the 5th 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 the tax block of 162-21 Jamaica Avenue, PincusCo has identified the owners of three of the 16 commercial properties representing 174,337 square feet of the 543,415 square feet. The largest owner is Zara Realty Holding, followed by Windfall Group and then New York City Housing Authority.
On the tax block, there was one new building construction project filed totaling 50,122 square feet. It is a 52-unit, 50,122 square-foot residential (R-2) building submitted by Windfall Group and filed by Eddie Ni with plans filed April 21, 2022 and permitted June 2, 2022.

The majority, or 32 percent of the 543,415 square feet of built space are elevator buildings, with industrial buildings next occupying 29 percent of the space.

The seller

The PincusCo database currently indicates that Jenel Management owned at least 18 commercial properties with 675 residential units in New York City with 849,291 square feet and a city-determined market value of $283.9 million. (Market value is typically about 50% of actual value.) The portfolio has $478.8 million in debt, with top three lenders as H.I.G. Capital, Signature Bank, and Aareal Capital respectively. Within the portfolio, the bulk, or 44 percent of the 849,291 square feet of built space are elevator properties, with retail properties next occupying 27 percent of the space. The bulk, or 48 percent of the built space, is in Brooklyn, with Manhattan next at 31 percent of the space.

The buyer

The PincusCo database currently indicates that Jackson Group owned at least five commercial properties in New York City with 121,192 square feet and a city-determined market value of $24.8 million. (Market value is typically about 50% of actual value.) The portfolio has $27.8 million in debt, borrowed from Signature Bank and Safra National Bank. Within the portfolio, the bulk, or 87 percent of the 121,192 square feet of built space are retail properties, with mixed-use properties next occupying 13 percent of the space. They are all located in Brooklyn.

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