James Juliano pays $9.5M for industrial in Sunnyside

James Juliano through the entity 37-90 Alray, LLC paid $9.5 million to Ing-Nan Hwang and Feng-Chiu Hwang for the midblock industrial building at 37-90 Railroad Avenue in Sunnyside, Queens.
The deal closed on February 24, 2022 and was recorded on March 16, 2022. The property has 6,000 square feet of built space and 60,060 square feet of additional air rights for a total buildable of 66,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,583 and the price per buildable square foot is $143 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 Ing-Nan Hwang and Feng-Chiu Hwang was Ing-Nan Hwang and Feng-Chiu Hwang. James Juliano signed on a previous deed for similarly named Alray 98th Avenue II, LLC which is located at the same address as this buyer LLC.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer James Juliano purchased one property in one transaction for a total of $15.1 million and has no record it sold any properties over the past 24 months.
The seller Ing-Nan Hwang had not purchased any other properties and had not sold any properties over the same time period. The 6,000-square-foot property generated revenue of $105,649 or $18 per square foot, according to the most recent income and expense figures.

The property

The 37-90 Railroad Avenue parcel has frontage of 237 feet and is 140 feet deep with a total lot size of 33,000 square feet. The lot is irregular. The zoning is M3-1 which allows for up to 2 times floor area ratio (FAR) for manufacturing. The city-designated market value for the property in 2022 is $461,000.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. 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 Sunnyside, the bulk, or 35 percent of the 23.5 million square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 19 percent of the space. In sales, Sunnyside has had very little sales volume relative to other neighborhoods with $174.7 million in sales volume in the last two years. For development, Sunnyside has had very little major development activity relative to other neighborhoods.It had 208,722 square feet of commercial and multi-family construction under development in the last two years, which represents 0.89 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of five of the 26 commercial properties representing 349,727 square feet of the 926,292 square feet. The largest owner is Blake Partners, followed by James Juliano and then C.A.C. Industries. There are five active new building construction projects totaling 38,706 square feet. The largest is a 28,568-square-foot storage (S-2) building developed by Cyril Kearney with plans filed May 4, 2018 and it has not been permitted yet. The second largest is a 10,135-square-foot office (B) building developed by Livio Forte with plans filed January 28, 2020 and it has not been permitted yet.

The majority, or 96 percent of the 910,292 square feet of built space are industrial buildings, with office buildings next occupying 3 percent of the space.

The buyer

The PincusCo database currently indicates that James Juliano owned at least one commercial property with 31,300 square feet and a city-determined market value of $4.4 million. (Market value is typically about 50% of actual value.) The portfolio has $16.2 million in debt, borrowed from M&T Bank. The portfolio consists of at least a single office property. It is located in Queens.

Surrounding

Within a 400-foot radius of 37-90 Railroad Avenue, PincusCo identified three commercial real estate items of interests occurred over the past 24 months.
One of those three items was a sale which James Juliano bought the 31,300-square-foot, one-unit office building (O2) on 37-30 Review Avenue for $15.1 million from Alan Dern on January 14, 2021.
Of those three items, two were loans above $5 million totaling $31.2 million. The most recent of the two was C.A.C. Industries which borrowed $15 million from M&T Bank secured by the 15,000-square-foot, one-unit industrial (Z9) on 3798 Railroad Avenue and one other property on February 8, 2022.

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