Marshall Kesten pays $11.5M for industrial in Long Island City

Marshall Kesten through the entity Bk Corners LLC paid $11.5 million to John J. Perno III and Thomas Perno for the industrial building (F1) at 31-31 48th Avenue in Long Island City, Queens.
The deal closed on January 5, 2024 and was recorded on January 24, 2024. The property has 29,250 square feet of built space and 24,840 square feet of additional air rights for a total buildable of 54,000 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $393 and the price per buildable square foot is $212 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 seller bought the property on April 13, 2006, for $5.5 million. The signatories for the sellers were John J. Perno III and Thomas Perno. The signatory for Marshall Kesten was Marshall Kesten. The contract date was October 31, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Marshall Kesten purchased one property in one transaction for a total of $1.5 million and sold two properties in two transactions for a total of $16.6 million over the past 24 months.
The seller John J. Perno III had not purchased any other properties and had not sold any properties over the same time period.

The property

The industrial building in Long Island City has 29,250 square feet of built space and 24,840 square feet of additional air rights for a total buildable of 54,000 square feet according to a PincusCo analysis of city data. The parcel has frontage of 90 feet and is 300 feet deep with a total lot size of 27,000 square feet. The zoning is M1-4 which allows for up to 2 times floor area ratio (FAR) for manufacturing. The city-designated market value for the property in 2022 is $3.2 million.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $1.4 million commercial foreclosure concerning a loan filed on May 22, 2023, brought by by Maverick Real Estate Partners. In addition, according to city public data, the property has not received any significant violations 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 Long Island City, The bulk, or 32 percent of the 60.1 million square feet of commercial built space are industrial buildings, with elevator buildings next occupying 31 percent of the space. In sales, Long Island City has the 7th highest sale turnover among other neighborhoods in the city with $1.6 billion in sales volume in the last two years. For development, Long Island City is the 5th most active neighborhood among other neighborhoods. It had 7.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 13 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

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

The majority, or 82 percent of the 266,413 square feet of built space are specialty buildings, with industrial buildings next occupying 18 percent of the space.

The buyer

The PincusCo database currently indicates that Marshall Kesten owned at least two commercial properties in New York City with 5,125 square feet and a city-determined market value of $532,000. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 100 percent of the 5,125 square feet of built space are industrial properties, with V1 properties next occupying 0 percent of the space. They are all located in Queens.

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