Lalezarian Properties as tenant signs $39M ground lease for two industrial properties in Astoria

Lalezarian Properties as tenant through the entity Astoria River LLC signed a $39 million ground lease with landlord Henry Modell & Company, Inc. by the signature of BEB Capital’s Bert E. Brodsky for a 99-year term at the industrial building (E9) at 34-24 Vernon Boulevard and the industrial building (G7) facing it across the street at 34-31 Vernon Boulevard in Astoria, Queens. The expected use is new development.
The deal closed on March 7, 2025 and was recorded on March 13, 2025. The two properties have 135,400 square feet of built space and 199,384 square feet of additional air rights for a total buildable of 334,552 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $288 and the price per buildable square foot is $116 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 Henry Modell & Co. and BEB Capital was Bert E. Brodsky. The signatory for Lalezarian Properties was Kevin Lalezarian . This is a 99-year ground lease. Henry Modell & Company first acquired a leasehold interest in the parcel in 1979, as lessee to the city’s Industrial Development Agency. Then in December 1999, the NYC IDA transferred the deed to Henry Modell & Company. The Modell group and BEB Capital have partnered together in the past, for example in 2019 in the Garment District, as The Real Deal reported.

Previously, Lalezarian Properties had purchased a loan secured by these properties and then refinanced the debt as lender to Modell. That debt was satisfied simultaneously with the lease.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Lalezarian Properties purchased six properties in two transactions for a total of $43.9 million and has no record it sold any properties over the past 24 months.
The seller Henry Modell & Co. had not purchased any other properties and had not sold any properties over the same time period. Out of the two properties, one with a total of 135,400 square feet of built space generated revenue of $2.1 million per year.

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 $625 in ECB penalties and $625 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 $1 million on this tax lot.

The neighborhood

In Astoria, The bulk, or 36 percent of the 40.2 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 31 percent of the space. In sales, Astoria has 2.1 times the average sales volume among other neighborhoods with $556.3 million in sales volume in the last two years and is the 3rd highest in Queens. For development, Astoria has 1.2 times the average amount of major developments relative to other neighborhoods and is the 7th highest in Queens. It had 1.3 million 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

On the tax block of 34-24 Vernon Boulevard, PincusCo has identified the owners of two of the three commercial properties representing 135,400 square feet of the 530,203 square feet. The two identified owners are Henry Modell & Co. and Consolidated Edison.
There are no active new building construction projects on this tax block.

The majority, or 74 percent of the 530,203 square feet of built space are elevator buildings, with industrial buildings next occupying 26 percent of the space.

The seller

The PincusCo database currently indicates that BEB Capital owned at least 14 commercial properties with 197 residential units in New York City with 187,956 square feet and a city-determined market value of $44.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 77 percent of the 187,956 square feet of built space are elevator properties, with F4 properties next occupying 6 percent of the space. The bulk, or 53 percent of the built space, is in Brooklyn, with Manhattan next at 45 percent of the space.
The PincusCo database currently indicates that Henry Modell & Co. owned at least two commercial properties in New York City with 135,400 square feet and a city-determined market value of $9.6 million. (Market value is typically about 50% of actual value.) The portfolio has $37.7 million in debt, borrowed from Modell’s Sporting Goods and Lalezarian Properties. Within the portfolio, all identified are industrial properties. They are all located in Queens.

The buyer

The PincusCo database currently indicates that Lalezarian Properties owned at least 18 commercial properties with 1,868 residential units in New York City with 1,655,428 square feet and a city-determined market value of $453.9 million. (Market value is typically about 50% of actual value.) The portfolio has $754.6 million in debt, with top three lenders as JPMorgan Chase, New York Community Bank, and TD Bank respectively. Within the portfolio, the bulk, or 90 percent of the 1,655,428 square feet of built space are elevator properties, with office properties next occupying 6 percent of the space. The bulk, or 58 percent of the built space, is in Manhattan, with Brooklyn next at 42 percent of the space.

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