Kassin Sabbagh Realty pays $23.4M to Bluestone Group for Elmhurst retail, garage

Kassin Sabbagh Realty, also known as KSR Capital, paid $23.4 million to the Bluestone Group for two retail condominium units in 90-02 Queens Boulevard, and a nearby garage, in Elmhurst, Queens. The sale was completed in three separate transactions, one for each of the condo units.

Bluestone Group bought the debt on the 260,000 square foot 90-02 Queens Boulevard and the garage properties in July 2018 from Madison Realty Capital (which Madison financed with loan to Bluestone) and Bluestone acquired control of the property in December 2019 through a foreclosure 712803/2016 that had total of $79.5 million in debt.

The previous owner, Ding Wai’s Sentry Operating Corp., bought the building in 2016 for $125 million.

In August 2020, the Bluestone Group divided 90-02 Queens Boulevard into three commercial condominium units and one bulk residential condo unit for a total of four units.

This sale includes the retail/office condo units 1002 and 1002 described this way in a Corcoran Group listing: “The main floor features a layout of 26,447± RSF, while the lower level features 29,167 ± RSF of prime commercial, office, medical or professional space with direct access via multiple street entry points, a rear loading bay, six elevators, and accessibility points. Warehouse/industrial uses and reasonable divisions will be considered.”

Bluestone Group still owns the residential portion and the second-floor unit, according to a the latest Acris records.

In the first transaction, Kassin Sabbagh Realty through the entity 9002 Commercial Unit LLC paid $10.4 million to Bluestone Group through the entity 90-02 Qb Holdings LLC for the retail condo at 90-02 Queens Boulevard in Elmhurst, Queens. 101215
The deal closed on April 18, 2023 and was recorded on April 21, 2023. The property has 29,710 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $350 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.)

In the second, Kassin Sabbagh Realty through the entity 9002 C1 LLC paid $8 million to Bluestone Group through the entity 90-02 Qb Holdings LLC for the retail condo at 90-02 Queens Boulevard in Elmhurst, Queens. The deal closed on April 18, 2023 and was recorded on April 21, 2023. The property has 35,003 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $228 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.)

In the third, Kassin Sabbagh Realty through the entity 9002 Garage LLC paid $5 million to Bluestone Group through the entity 90-02 Qb Holdings LLC for the industrial building (G1) at 87-28 58th Avenue in Elmhurst, Queens.
The deal closed on April 18, 2023 and was recorded on April 21, 2023. The property has 86,400 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $57 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 Bluestone Group was Marc Mendelsohn. The signatory for Kassin Sabbagh Realty was Abraham Kassin.

Prior sales and revenue

The seller Bluestone Group had not purchased any other properties and sold two properties in two transactions for a total of $6.3 million over the past 24 months.

The property

The retail condo in Elmhurst has 29,710 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 29,710 square feet. The city-designated market value for the property in 2022 is $9.3 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 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 neighborhood

In Elmhurst, The bulk, or 40 percent of the 19.8 million square feet of commercial built space are elevator buildings, with mixed-use buildings next occupying 21 percent of the space. In sales, Elmhurst has had very little sales volume relative to other neighborhoods with $176.5 million in sales volume in the last two years. For development, Elmhurst has had very little major development activity relative to other neighborhoods.It had 501,201 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other retail buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of two of the three commercial properties representing zero square feet of the 2,874 square feet. The two identified owners are Menachem Augenstein and MCO.
On the tax block, there was one new building construction project filed totaling 5,985 square feet. It is a 5,985 square-foot mercantile (M) building submitted by John Garcia with plans filed April 15, 2016 and it has not been permitted yet.

The seller

The PincusCo database currently indicates that Bluestone Group owned at least 18 commercial properties with 53 residential units in New York City with 346,116 square feet and a city-determined market value of None. (Market value is typically about 50% of actual value.) The portfolio has $109.4 million in debt, borrowed from Signature Bank and Madison Realty Capital. Within the portfolio, the bulk, or 48 percent of the 346,116 square feet of built space are industrial properties, with mixed-use properties next occupying 21 percent of the space. The bulk, or 50 percent of the built space, is in Manhattan, with Queens next at 32 percent of the space.

The buyer

The PincusCo database currently indicates that Kassin Sabbagh Realty owned at least three commercial properties with eight residential units in New York City with 17,174 square feet and a city-determined market value of None. (Market value is typically about 50% of actual value.) The portfolio has $5.2 million in debt, borrowed from Signature Bank. Within the portfolio, the bulk, or 60 percent of the 17,174 square feet of built space are elevator properties, with retail properties next occupying 40 percent of the space. They are all located in Brooklyn.

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