Madison Realty Capital acquires Myint Kyaw’s Flushing retail through bankruptcy, $80M transfer value

Madison Realty Capital through the entity 41-60 Main Street Owner LLC acquired Myint Kyaw’s retail building (O5) at 41-60 Main Street in Flushing, Queens, through the entity Flushing Landmark Realty L.L.C. through a bankruptcy process started in 2020. The acquisition had a city transfer amount of $80 million. Myint Kyaw also uses the name Jeffrey Wu.
The deal closed on February 7, 2024 and was recorded on February 16, 2024. The property has 100,500 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $796 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 the seller entity, which has been controlled by Madison Realty Capital, was Urian Yap, the company’s chief financial officer. The signatory for the buyer was also Urian Yap.

The acquisition was financed with a $15 million loan from Emigrant Bank.

Myint Kyaw acquired the property in the 1990s, and sought to sell it in 2014 for $92 million. The bankruptcy was filed in 2020, along with another bankruptcy for the mezzanine position, and a person filing for Myint Kyaw.

The plan was confirmed by an order on February 27, 2023. According to the bankruptcy filing for Flushing Landmark Realty LLC, the bankruptcy plan was confirmed on December 13, 2022.

As of 2020, the total debt was $95.6 million. According to Kyaw’s affidavit in 202o, “Jeffrey Wu and his non-filing spouse, Ioc Heng Ip, a/k/a Veronica Wu are guarantors. On or about July 6, 2020, the Mortgagee commenced or transferred a foreclosure action which may have originally been filed in Suffolk County, in the Supreme Court, Queens County (Index No. 709292/2020) styled 41-60 Main Street LLC v. Flushing Landmark Realty L.L.C., Victoria Towers Development Corp., Lucky Star-Deer Park LLC, Myint J. Kyaw, Ioc Heng Ip, Board of Managers of Victoria Towers Condominium, et al.

“The improvements are a three (3) story and cellar, multi-tenanted office building constructed circa 1977, that has been updated from time-to-time with small renovation projects. The Real Property features grade-level retail space along Main Street, including a ground floor mall style retail space. The building has total rentable space of approximately 93,000 square feet. While the subject Real Property is located in Queens County”

In January 2022, Invictus Real Estate Partners and Fortress Investment Group drafted term sheet for a $169 million loan that would pay off all the then-agreed debts for Flushing Landmark and other properties, but that financing was never finalized.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Madison Realty Capital purchased 11 properties in six transactions for a total of $236.3 million and sold 11 properties in eight transactions for a total of $81.6 million over the past 24 months.
The seller Jeffrey Wu had not purchased any other properties and sold 36 properties in one transaction for a total of $37.5 million over the same time period. The 100,500-square-foot property generated revenue of $5.4 million or $53 per square foot, according to the most recent income and expense figures.

The property

The retail building in Flushing has 100,500 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 251 feet and is 103 feet deep with a total lot size of 25,935 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $25.2 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 received $12,260 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 Flushing, The bulk, or 45 percent of the 37.7 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 20 percent of the space. In sales, Flushing has 3 times the average sales volume among other neighborhoods with $888.8 million in sales volume in the last two years and is the 2nd highest in Queens. For development, Flushing has 2.2 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Queens. It had 2.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the nine commercial properties representing 33,490 square feet of the 339,912 square feet. The two identified owners are Xiang Yu Cao and Jeffrey Wu.
On the tax block, there was one new building construction project filed totaling 68,065 square feet. It is a 56-unit, 68,065 square-foot residential (R-2) building submitted by Elizabeth Chen with plans filed April 14, 2021 and it has not been permitted yet.

The majority, or 63 percent of the 339,912 square feet of built space are elevator buildings, with retail buildings next occupying 33 percent of the space.

The buyer

The PincusCo database currently indicates that Madison Realty Capital owned at least 64 commercial properties with 2,695 residential units in New York City with 2,866,025 square feet and a city-determined market value of $388.5 million. (Market value is typically about 50% of actual value.) The portfolio has $1.4 billion in debt, with top three lenders as Signature Bank, MF1 Capital, and Elliott Investment Management respectively. Within the portfolio, the bulk, or 75 percent of the 2,866,025 square feet of built space are elevator properties, with walkup properties next occupying 12 percent of the space. The bulk, or 37 percent of the built space, is in Queens, with Brooklyn next at 33 percent of the space.

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