Joel Landau, partners pay $44M for addiction treatment facility in Fresh Meadows

Joel Landau, Bent Philipson and another partner paid $44 million to Sean Lavin’s Galway Properties, LLC for the addiction treatment facility (I1) at 159-05 Union Turnpike in Fresh Meadows, Queens. Sean Lavin leads Townhouse Property Group.
The deal closed on February 3, 2023 and was recorded on February 10, 2023. The property has 79,800 square feet of built space and 64,008 square feet of additional air rights for a total buildable of 143,840 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $551 and the price per buildable square foot is $305 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 buyer entities were Joel Landau’s Even Pine Union Propco LLC which acquired 89 percent, and two additional entities, Union Propco TIC Member I LLC with 10 percent and Union Propco TIC Member II LLC with 1 percent, according to the Acris filing.
The seller bought the property on March 31, 2005, for $10 million.
Joel Landau is the managing partner of the health care investment firm Pinta Capital Partners and also leads the nursing home company, Allure Group. The purchasing entity for the 89 percent stake in the property was in care of the same address and floor of Pinta, while two other buyer entities totaling 11 percent were at the address of used by Bent Philipson, who was a signatory for the purchaser. The other signatory was Joel Zupnick.

The signatory for the seller was Sean Lavin.

The New York State Office of Addiction Services and Supports’ (OASAS) reviewed and approved a change in the stock ownership of the Cornerstone Treatment Facilities Network, which operates two locations, one in Westchester County and the other in Fresh Meadows. The upstate location rents its space, but the Fresh Meadows location is owned by Cornerstone, according to the OASAS document, which says, “Medical Arts owns the Fresh Meadows location, therefore, there was no lease to review.” Mr. Puzo is a current owner of Cornerstone and will retain 10% of the stock in the corporation, and Mr. Landau will become a new owner, with the purchase of the remaining 90% of the stock, according to the OASAS document.

OASAS document LINK

The property

The parcel has frontage of 624 feet and is 135 feet deep with a total lot size of 71,920 square feet. The lot is irregular. The zoning is R5D which allows for up to 2 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $28.9 million. The most recent loan totaled $31.5 million and was provided by Dime Community Bank on June 5, 2020.

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.

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 block

On this tax block, PincusCo has identified the owners of one of the 41 commercial properties representing 79,800 square feet of the 102,120 square feet. The identified owner is Townhouse Property Group.
On the tax block, there was one new building construction project filed totaling 929 square feet. It is a 929 square-foot assembly (A-2) building submitted by Paola Bergonzi with plans filed August 25, 2021 and it has not been permitted yet.

The majority, or 90 percent of the 88,841 square feet of built space are specialty buildings, with office buildings next occupying 5 percent of the space.

Direct link to Acris document. link