Keith Kantrowitz, partner, pay $15.5M for retail in Maspeth

Investor and broker Keith Kantrowitz along with an affiliate of investor Ryan Tedder, through the entity MRK Metro, LLC paid $15.5 million to Rosenthal & Rosenthal through the entity Broadway Tenth/Flagstaff LLC for the retail building (K1) at 61-13 Metropolitan Avenue in Maspeth, Queens and an adjacent parking lot. The expected use is cash flowing. Rosenthal & Rosenthal is a factoring and business lending firm that also owns real estate.
The deal closed on November 21, 2024 and was recorded on November 27, 2024. The two properties have 13,482 square feet of built space and 49,535 square feet of additional air rights for a total buildable of 62,945 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,148 and the price per buildable square foot is $245 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.) CVS leases the property.
The signatory for Rosenthal & Rosenthal was company CFO James Occhiogrosso. The signatories for Ryan Tedder and Keith Kantrowitz were Nelson Braff and Keith Kantrowitz. The contract date was June 25, 2024. Kantrowitz and Tedder partnered to buy an office building in Las Vegas.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Ryan Tedder had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Rosenthal & Rosenthal purchased one property in one transaction for a total of $4.7 million and had not sold any properties over the same time period.

The property

The retail building in Maspeth has 13,482 square feet of built space and 49,535 square feet of additional air rights for a total buildable of 62,945 square feet according to a PincusCo analysis of city data. The parcel has frontage of 27 feet and is 266 feet deep with a total lot size of 23,945 square feet. The lot is irregular. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $2.6 million. The most recent loan totaled $8 million and was provided by Lincoln Life & Annuity Company of New York on July 10, 2020.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received $1,300 in OATH penalties in the last year.

Development

For the tax lot buildings, one out of the two buildings received a initial certificate of occupancy in the last ten years. 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 Maspeth, The majority, or 73 percent of the 22.3 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 8 percent of the space. In sales, Maspeth has near average sales volume among other neighborhoods with $245.6 million in sales volume in the last two years and is the 7th highest in Queens. For development, Maspeth has had very little major development activity relative to other neighborhoods.It had 442,368 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On the tax block of 61-13 Metropolitan Avenue, PincusCo has identified the owners of three of the 10 commercial properties representing 32,482 square feet of the 69,797 square feet. The two identified owners are Rosenthal & Rosenthal and Forgione.
There are no active new building construction projects on this tax block.

The majority, or 61 percent of the 69,797 square feet of built space are retail buildings, with mixed-use buildings next occupying 32 percent of the space.

The seller

The PincusCo database currently indicates that Rosenthal & Rosenthal owned at least three commercial properties in New York City with 15,982 square feet and a city-determined market value of $4.2 million. (Market value is typically about 50% of actual value.) The portfolio has $8 million in debt, borrowed from Lincoln Life & Annuity Company of New York. Within the portfolio, the bulk, or 100 percent of the 15,982 square feet of built space are retail properties, with industrial properties next occupying 0 percent of the space. They are all located in Queens.

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