Jaspinder Sandhu pays $23.6M for leasehold on retail in Rego Park

Jaspinder Sandhu through the entity 93rd Rego Park LLC paid $23.6 million to Matt Development through the entity 9277qb LLC for a long-term ground lease controlling the mixed-use retail building (K4) at 92-77 Queens Boulevard in Rego Park, Queens.
The deal closed on July 31, 2023 and was recorded on August 9, 2023. The property has 61,780 square feet of built space and 9,284 square feet of additional air rights for a total buildable of 70,977 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $382 and the price per buildable square foot is $333 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 Matt Development was Michael DeSousa. The signatory for Jaspinder Sandhu was Jaspinder Sandhu. The land is owned by the family of Arma Andon, the Andon Investment LP, which signed a ground lease in 2013 as landlord with the seller, Matt Development. Barone Management was involved in the development of the property.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Jaspinder Sandhu had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Matt Development had not purchased any other properties and had not sold any properties over the same time period.

The property

The mixed-use building in Rego Park has 61,780 square feet of built space and 9,284 square feet of additional air rights for a total buildable of 70,977 square feet according to a PincusCo analysis of city data. The parcel has frontage of 105 feet and is 200 feet deep with a total lot size of 20,633 square feet. The lot is irregular. 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 $20.3 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 received $2,545 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on June 20, 2016. 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 Rego Park, The majority, or 65 percent of the 10.6 million square feet of commercial built space are elevator buildings, with mixed-use buildings next occupying 13 percent of the space. In sales, Rego Park has had very little sales volume relative to other neighborhoods with $139.5 million in sales volume in the last two years. For development, Rego Park has had very little major development activity relative to other neighborhoods.It had 446,635 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 one of the four commercial properties representing 29,120 square feet of the 95,168 square feet. The identified owner is Michael Zavoluno.
There are no active new building construction projects on this tax block.

The majority, or 96 percent of the 95,168 square feet of built space are mixed-use buildings, with retail buildings next occupying 4 percent of the space.

The buyer

The PincusCo database currently indicates that Jaspinder Sandhu owned at least one commercial property in New York City with 29,469 square feet and a city-determined market value of $3.8 million. (Market value is typically about 50% of actual value.) The portfolio has $18 million in debt, borrowed from Orange Bank & Trust Company. The portfolio consists of at least a single hotel property. It is located in Bronx.

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