Muhammad Hameed pays $19M to Yan Po Zhu for hotel in Long Island City

Muhammad Hameed through the entity 2912 40th Ave LLC paid $19 million to Yan Po Zhu through the entity 29-12 LIC LLC for the hotel building (H3) at 29-12 40th Avenue in Long Island City, Queens. The expected use is cash flowing.
The deal closed on March 5, 2025 and was recorded on March 13, 2025. The property has 27,899 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $681 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 September 21, 2011, for $2 million. The signatory for Yan Po Zhu was Yan Po Zhu. The signatory for Muhammad Hameed was Muhammad I. Hameed. The contract date was October 16, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Muhammad I. Hameed had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Yan Po Zhu had not purchased any other properties and sold one property in one transaction for a total of $6.2 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Yan Po Zhu, head officer and Yali Li, officer. The business entity is 29-12 Lic Llc. The 27,899-square-foot property generated revenue of $3.6 million or $130 per square foot, according to the most recent income and expense figures.

The property

The hotel building in Long Island City has 27,899 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 111 feet deep with a total lot size of 5,550 square feet. The zoning is M1-3/R7X which allows for up to 5 times floor area ratio (FAR) for manufacturing and up to 5 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $6 million. The most recent loan totaled $10 million and was provided by Industrial and Commercial Bank of China on November 19, 2019.

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 $67,500 in ECB penalties and $73,500 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on January 16, 2019. 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 8th highest sale turnover among other neighborhoods in the city with $1.2 billion in sales volume in the last two years. For development, Long Island City is the 7th most active neighborhood among other neighborhoods. It had 6.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 12 of the 15 commercial properties representing 275,561 square feet of the 349,749 square feet. The largest owner is CubeSmart, followed by Anjali Gopalani and then Yali Li.
On the tax block, there were three new building construction projects totaling 41,414 square feet. The largest is a 26-unit, 29,674 square-foot residential (R-2) building submitted by SB Development Group and filed by Joseph Stern with plans filed March 4, 2022 and permitted December 11, 2023. The second largest is a 5,870 square-foot mercantile (M) building submitted by Kyong Park with plans filed February 12, 2016 and permitted August 14, 2019.

The majority, or 45 percent of the 349,749 square feet of built space are hotel buildings, with industrial buildings next occupying 43 percent of the space.

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