Philip Kirsh sells 75% stake in LIC industrial for $8.1M

The entity Gondproperty LLC acquired a 75 percent interest in the industrial building (E9) at 38-40 10th Street in Long Island City, Queens, from baker Philip Kirsh valued at $8.1 million. This was an entity-level transaction.
The deal closed on November 29, 2024 and was recorded on December 9, 2024. The property has 20,900 square feet of built space and 104,000 square feet of additional air rights for a total buildable of 125,000 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $387 and the price per buildable square foot is $64 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 January 14, 2010, for $3.1 million. Philip Kirsh signed for a $3.3 million loan on the property in 2014 as “member/manager.”

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Philip Kirsh had not purchased any other properties and had not sold any properties over the same time period.

The property

The industrial building in Long Island City has 20,900 square feet of built space and 104,000 square feet of additional air rights for a total buildable of 125,000 square feet according to a PincusCo analysis of city data. The parcel has frontage of 250 feet and is 100 feet deep with a total lot size of 25,000 square feet. The zoning is M1-3 which allows for up to 5 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $2.3 million.

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 $2,500 in ECB penalties and $5,500 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 $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 $1.1 billion in sales volume in the last two years. For development, Long Island City is the 9th most active neighborhood among other neighborhoods. It had 5.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space. There were four pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of five of the 24 commercial properties representing 297,745 square feet of the 373,484 square feet. The largest owner is Mcsam Hotel Group, followed by Priyank N. Patel and then Riverbrook Equities.
On the tax block, there were two new building construction projects totaling 76,375 square feet. The largest is a 248-unit, 73,644 square-foot hotel/dormitory/shelter (R-1) building submitted by McSam Hotel Group and filed by Chang Sam with plans filed April 12, 2016 and permitted August 31, 2018. The second largest is a 2,731 square-foot business (B) building submitted by Howard Wu with plans filed July 6, 2018 and permitted March 9, 2021.

The majority, or 77 percent of the 373,484 square feet of built space are hotel buildings, with industrial buildings next occupying 18 percent of the space.

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