Moscow-based Pioneer Group sells Astoria West stake to partner Cape Advisors valued at $155.3M

Lead developer Cape Advisors through the entity Astoria Vernon Holdings, LLC acquired an interest from Russia-based partner Pioneer Group through the entity Astoria West Holdings, LLC valued at $155.3 million for a stake in the 534-unit rental development at 30-77 Vernon Boulevard in Astoria, Queens.
The deal closed on April 14, 2022 and was recorded on April 27, 2022.
It was not immediately clear if this was a long-expected sale or one precipitated in some way by sanctions imposed by the United States on Russia.

Cape Advisors and Pioneer did not immediately respond to requests for comment.

Cape Advisors is leading the development of a 534-unit complex on the Astoria waterfront. It obtained a $280 million construction loan in 2020 led by Square Mile Capital.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 11-28 30th Drive.

Development

On these lots, there are four active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 1,497,245 square feet. The largest is a new building project for a 266-unit, 375,371-square-foot R-2 building developed by David Kronman with plans filed October 5, 2018 and permitted December 5, 2020. The second largest is a new building project for a 117-unit, 375,371-square-foot R-2 building developed by David Kronman with plans filed October 9, 2018 and permitted December 5, 2020.

The neighborhood

In Astoria, the bulk, or 27 percent of the 54.6 million square feet of commercial built space are residential walkup buildings, with residential elevator buildings next occupying 23 percent of the space. In sales, Astoria has 2.8 times the average sales volume among other neighborhoods with $761.9 million in sales volume in the last two years and is the 2nd highest in Queens. For development, Astoria has 3.5 times the average amount of major developments relative to other neighborhoods and is the 4th highest in Queens. It had 3.2 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 the tax block of 11-28 30th Drive, PincusCo has identified the owners of three of the four commercial properties representing zero square feet of the 16,084 square feet. The two identified owners are Pioneer Group and Cape Advisors. There are five active new building construction projects totaling 1,599,866 square feet. The largest is a 266-unit, 375,371-square-foot R-2 building developed by David Kronman with plans filed October 5, 2018 and permitted December 5, 2020. The second largest is a 151-unit, 375,371-square-foot R-2 building developed by David Kronman with plans filed October 5, 2018 and permitted December 5, 2020.

Surrounding

Within a 400-foot radius of 11-28 30th Drive, PincusCo identified five commercial real estate items of interests occurred over the past 24 months.
Of those five items, three were in new building development. There were three new building permits. The most recent of these three items was a permit on October 22, 2021 for a 29,900-square-foot R-2 building with 29 residential units at 11-32 31st Avenue.
One of those five items was a sale which Mortar bought the 3,500-square-foot, one-unit industrial (E9) on 11-32 31st Avenue for $5 million from Rosner Custom Sound, Inc. on August 26, 2021.
One of those five items was a loan which Mortar borrowed $14.7 million from Popular Bank secured by the 3,500-square-foot, one-unit industrial (E9) on 11-32 31st Avenue on August 26, 2021.

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