Musso Group pays $22M for residential elevator in Forest Hills

Musso Group through the entity Fh 73 LLC paid $22 million to the entity M & E Rubin LLC for the midblock 78-unit residential elevator building at 110-20 73rd Road in Forest Hills, Queens.
The deal closed on May 2, 2022 and was recorded on May 6, 2022. The property has 78,650 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $279 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 M&E Rubin was B. David Schreiber. The signatory for Musso Group was Victor A. Musso. Thomas M. Steinberg, who signed on the previous mortgage is the founder and CEO of TS Partners.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Musso Group had purchased any other properties and sold two properties in one transactions for a total of $87.2 million over the past 24 months.
The former owners according to the Department of Housing Preservation and Development includes Joseph Shmidman, head officer and Sarah Ross, officer. The business entities are Kaled Management Corp. and M &E Rubin Llc. The 78,650-square-foot property generated revenue of $2.1 million or $27 per square foot, according to the most recent income and expense figures.

The property

The 110-20 73rd Road parcel has frontage of 170 feet and is 170 feet deep with a total lot size of 28,900 square feet. 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 $9.5 million.

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 received one DOB violation, 12 housing violations, and $50 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 $5 million on this tax lot.

The neighborhood

In Forest Hills, the majority, or 58 percent of the 43.3 million square feet of commercial built space are residential elevator buildings, with 1-4 family buildings next occupying 27 percent of the space. In sales, Forest Hills has had very little sales volume relative to other neighborhoods with $99.6 million in sales volume in the last two years. For development, Forest Hills has 1.9 times the average amount of major developments relative to other neighborhoods and is the 6th highest in Queens. It had 1.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

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

The majority, or 96 percent of the 325,789 square feet of built space are residential elevator buildings, with mixed-use buildings next occupying 4 percent of the space.

Surrounding

PincusCo has not identified any commercial real estate items of interest within a 400-foot radius of 110-20 73rd Road that occurred over the past 24 months.

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