Metropolitan Realty, Morgan Stanley pay $105.5M to Traub Capital for LIC industrial

Metropolitan Realty Associates and Morgan Stanley through the entity Ppf Industrial 27-11 49th Avenue, LLC paid $105.5 million to Traub Capital’s MANA Products through the entity Mana Propco LLC for the industrial building at 27-11 49th Avenue in Long Island City, Queens.
The deal closed on June 3, 2022 and was recorded on June 22, 2022. The property has 214,820 square feet of built space for a total buildable of 215,280 square feet according to PincusCo analysis of city data. The sale price per built square foot is $491 and the price per buildable square foot is $490 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 August 31, 2020, for $75 million. The signatory for Traub Capital was Brian Crosby. The signatory for Metropolitan Realty Associates and Morgan Stanley was Michael Givner. Commercial Observer first reported the sale. CBRE’s Doug Middleton and Will Pike brokered the deal, which involved a sale-leaseback, according to the report.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Metropolitan Realty Associates had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Traub Capital purchased one properties in one transactions for a total of $75 million and had not sold any properties over the same time period. The 214,820-square-foot property generated revenue of $3.6 million or $17 per square foot, according to the most recent income and expense figures.

The property

The 27-11 49th Avenue parcel has frontage of 328 feet and is 395 feet deep with a total lot size of 107,640 square feet. The lot is irregular. The zoning is M3-2 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $13.5 million.The most recent loan totaled $35 million and was provided by Valley National Bank on August 31, 2020.

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 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 $5 million on this tax lot.

The neighborhood

In Long Island City, the bulk, or 33 percent of the 66.2 million square feet of commercial built space are residential elevator buildings, with industrial buildings next occupying 30 percent of the space. In sales, Long Island City has 4.2 times the average sales volume among other neighborhoods with $1.2 billion in sales volume in the last two years and is the highest in Queens. For development, Long Island City is the 2nd most active neighborhood among other neighborhoods. It had 9.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 14 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of six of the 14 commercial properties representing 412,265 square feet of the 592,965 square feet. The largest owner is Traub Capital, followed by 21st Century Storage and then Alexandria Real Estate Equities. There are no active new building construction projects on this tax block.

The majority, or 100 percent of the 592,965 square feet of built space are industrial buildings.

The seller

The PincusCo database currently indicates that Traub Capital owned at least one commercial property with 214,820 square feet and a city-determined market value of $13.5 million. (Market value is typically about 50% of actual value.) The portfolio has $35 million in debt, borrowed from Valley National Bank. The portfolio consists of at least a single industrial property. It is located in Queens.

The buyer

The PincusCo database currently indicates that Morgan Stanley owned at least three commercial properties with 89,616 square feet and a city-determined market value of $6.8 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 72 percent of the 89,616 square feet of built space are specialty properties, with industrial properties next occupying 28 percent of the space. They are all located in Queens.
The PincusCo database currently indicates that Metropolitan Realty Associates owned at least one commercial property with 322,390 square feet and a city-determined market value of $27.4 million. (Market value is typically about 50% of actual value.) The portfolio has $36.5 million in debt, borrowed from TIAA. The portfolio consists of at least a single industrial property. It is located in Queens.

Surrounding

Within a 400-foot radius of 27-11 49th Avenue, PincusCo identified one commercial real estate item of interests occurred over the past 24 months.
It was a loan which Charles Sommer borrowed $5.3 million from First National Bank of Long Island secured by the 10,500-square-foot, one-unit industrial (G1) on 25-61 49th Avenue on October 15, 2021.

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