Ken Huang affiliate pays $53M to Heyman Enterprise for hotel in Jackson Heights

An affiliate of Ken Huang through the entity 90-10 Ditmars Holding LLC paid $53 million to Heyman Enterprise through the entity Gcp Realty II, LLC for the hotel building (H3) at 90-10 Ditmars Avenue in Jackson Heights, Queens.
The deal closed on December 15, 2022 and was recorded on December 27, 2022. The property has 189,250 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $280 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 Heyman Enterprise was Lazarus S. Heyman. The signatory for Ken Huang was Ken Huang. Ken Huang has partnered with Sunlight Development Group, but it’s unclear if Huang is a member of that company.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Ken Huang had purchased any other properties and sold one properties in one transactions for a total of $8 million over the past 24 months.
The seller Heyman Enterprise had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Larry Heyman, head officer and Richard Jabara, officer. The business entity is Gcp Realty II, LLC.

The property

The 90-10 Ditmars Avenue parcel has frontage of 477 feet and is 699 feet deep with a total lot size of 183,415 square feet. The lot is irregular. The zoning is R3-2 which allows for up to 0.5 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $33.5 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received five DOB violations 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 Jackson Heights, the bulk, or 42 percent of the 16.4 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 18 percent of the space. In sales, Jackson Heights has had very little sales volume relative to other neighborhoods with $175.3 million in sales volume in the last two years. For development, Jackson Heights has had very little major development activity relative to other neighborhoods.It had 458,593 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.

The block

There are no active new building construction projects on this tax block.

The majority, or 100 percent of the 189,850 square feet of built space are hotel buildings.

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