Kartsonis Realty pays $9M to Alrose Group for retail in Astoria

Kartsonis Realty through the entity 31-15 32 Street LLC paid $9 million to Alrose Group through the entity Alrose Dagny, LLC for retail building (K1) at 32-84 Steinway Street in Astoria, Queens.
The deal closed on November 30, 2022 and was recorded on December 8, 2022.The property has 8,420 square feet of built space and 19,939 square feet of additional air rights for a total buildable of 28,350 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,068 and the price per buildable square foot is $317 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 seller bought the property on November 1, 2016, for $7.2 million. The signatory for Alrose Group was Allen Rosenberg. The signatory for Kartsonis Realty was Dean Kartsonis.

At this parcel, investor Penny Hart alleges she is a partial or full owner in the property 32-84 Steinway Street in Astoria and that she and Rosenberg purchased it in 2016 for $7.25 million, and she is now petitioning for a partition and sale of the property which the suit says is worth about $12 million. The suit, filed yesterday, alleges Rosenberg has agreed to sell the property. The complaint says she is seeking dissolution of the operating LLC and sale because there are, “irreconcilable differences between Hart and Rosenberg that have no prospect of cure including but not limited to … and Rosenberg’s mortgage of the Property without the knowledge or authorization of Hart, it is impossible for Hart and Rosenberg to reach any agreement regarding the assets and management of ADL.” Court LINK

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Kartsonis Realty purchased two properties in two transactions for a total of $16.7 million and sold one properties in one transactions for a total of $14.8 million over the past 24 months.
The seller Alrose Group had not purchased any other properties and had not sold any properties over the same time period. The 8,420-square-foot property generated revenue of $618,217 or $73 per square foot, according to the most recent income and expense figures.

The property

The 32-84 Steinway Street parcel has frontage of 105 feet and is 98 feet deep with a total lot size of 9,450 square feet. The zoning is C4-2A which allows for up to 3 times floor area ratio (FAR) for commercial and up to 3 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.7 million.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $12 million judgment concerning a partition filed on August 4, 2022, by Penny Fern Hart against Allen Rosenberg. In addition, according to city public data, the property has received $50 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 $5 million on this tax lot.

The neighborhood

In Astoria, the bulk, or 37 percent of the 39.2 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 29 percent of the space. In sales, Astoria has 3.1 times the average sales volume among other neighborhoods with $1.1 billion in sales volume in the last two years and is the 2nd highest in Queens. For development, Astoria has 3.3 times the average amount of major developments relative to other neighborhoods and is the 3rd highest in Queens. It had 3.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 9 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 21,780 square feet of the 151,441 square feet. The largest owner is Joseph Illes, followed by Albert Nacinovich and then Ante Grando.
On the tax block, there was one new building construction project filed totaling 3,343 square feet. It is a three-unit, 3,343-square-foot R-2 building developed by Steve Lagoudis with plans filed February 6, 2015 and permitted August 2, 2017.

The majority, or 58 percent of the 151,441 square feet of built space are retail buildings, with mixed-use buildings next occupying 18 percent of the space.

The seller

The PincusCo database currently indicates that Alrose Group owned at least one commercial property in New York City with 7,656 square feet and a city-determined market value of $5.6 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single office property. It is located in Manhattan.

The buyer

The PincusCo database currently indicates that Kartsonis Realty owned at least one commercial property in New York City with 10,000 square feet and a city-determined market value of $2.4 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single retail property. It is located in Queens.

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