Peak Capital pays $14.8M to Kartsonis Realty for 46-unit LIC walkup

Peak Capital Advisors through the entity 1155 45th Owner LLC paid $14.8 million to Kartsonis Realty through the entity 44-74 21st Street Realty, LLC for 46-unit residential walkup building (C7) at 11-55 45th Avenue in Long Island City, Queens.
The deal closed on July 7, 2022 and was recorded on July 18, 2022. The property has 45,707 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $323 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 May 18, 2012, for $9.5 million. The signatory for Kartsonis Realty was Dean Kartsonis. The signatory for Peak Capital Advisors was Alex Rabin.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Peak Capital Advisors purchased 15 properties in 13 transactions for a total of $79.5 million and has no record it sold any properties over the past 24 months.
The seller Kartsonis Realty purchased one property in one transaction for a total of $4.4 million and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Dean Kartsonis, head officer and Kristopher Ludwig, site manager. The business entity is 44-74 21 Street Realty Llc. The 45,707-square-foot property generated revenue of $1.1 million or $25 per square foot, according to the most recent income and expense figures.

The property

The 11-55 45th Avenue parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 10,000 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $5.8 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 14 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 block

On this tax block, PincusCo has identified the owners of four of the 19 commercial properties representing 50,432 square feet of the 199,399 square feet. The largest owner is Century Development Group, followed by Priscilla Navarrete and then Ronald Sheppard. There are two active new building construction projects totaling 31,558 square feet. The largest is a 22-unit, 15,888-square-foot R-2 building developed by Daniel Gazal with plans filed June 15, 2017 and it has not been permitted yet.The second largest is a 22-unit, 15,670-square-foot R-2 building developed by Shuhua Zhao with plans filed June 28, 2018 and permitted February 26, 2020.

The majority, or 84 percent of the 199,399 square feet of built space are walkup buildings, with office buildings next occupying 9 percent of the space.

The buyer

The PincusCo database currently indicates that Peak Capital Advisors owned at least 16 commercial properties in New York City with 157,606 square feet and a city-determined market value of $43.5 million. (Market value is typically about 50% of actual value.) The portfolio has $46.6 million in debt, with top three lenders as Prime Finance Partners, Walker & Dunlop, and Patriot Bank respectively. Within the portfolio, the bulk, or 92 percent of the 157,606 square feet of built space are walkup properties, with mixed-use properties next occupying 8 percent of the space. The bulk, or 44 percent of the built space, is in Brooklyn, with Manhattan next at 39 percent of the space.

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