KP Developers pays $8.2M for retail in Corona

KP Developers through the entity Chai 555 LLC paid $8.2 million to Laurence S. Mandel through the entity 40-16 National Associates, LLC for midblock retail building at 40-16 National Street in Corona, Queens.
The deal closed on May 19, 2022 and was recorded on June 3, 2022. The property has 11,250 square feet of built space and 16,166 square feet of additional air rights for a total buildable of 27,400 square feet according to PincusCo analysis of city data. The sale price per built square foot is $728 and the price per buildable square foot is $299 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 Laurence S. Mandel was Laurence S. Mandel. Ronald Schubert was a signatory on a 2002 loan agreement document. Ryan Pedram is an executive with KP Developers.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer KP Developers had purchased any other properties and sold two properties in two transactions for a total of $7 million over the past 24 months.
The seller Laurence S. Mandel had not purchased any other properties and had not sold any properties over the same time period. The 11,250-square-foot property generated revenue of $497,138 or $44 per square foot, according to the most recent income and expense figures.

The property

The 40-16 National Street parcel has frontage of 119 feet and is 95 feet deep with a total lot size of 13,700 square feet. The lot is irregular. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3.9 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 $380 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 Corona, the bulk, or 38 percent of the 22.8 million square feet of commercial built space are 1-4 family buildings, with residential elevator buildings next occupying 33 percent of the space. In sales, Corona has the 27th highest sale turnover among other neighborhoods in Queens with $39.2 million in sales volume in the last two years. For development, Corona has had very little major development activity relative to other neighborhoods.It had 182,724 square feet of commercial and multi-family construction under development in the last two years, which represents 0.80 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of five of the 19 commercial properties representing 16,866 square feet of the 74,337 square feet. The largest owner is Dean K. Fong Attorney At Law, followed by Albert Rabizadeh and then Sutin Lee. There are no active new building construction projects on this tax block.

The majority, or 43 percent of the 94,116 square feet of built space are mixed-use buildings, with retail buildings next occupying 22 percent of the space.

Surrounding

PincusCo has not identified any commercial real estate items of interest within a 400-foot radius of 40-16 National Street that occurred over the past 24 months.

Direct link to Acris document. link