Raymour & Flanigan pays Infinity Collective, partners, $42M for retail in Staten Island, up from $31.5M in 2020

In yet another example of a user buying commercial real estate, the furniture company Raymour & Flanigan paid Infinity Collective and two partners $42 million for two buildings including 2505 Richmond Avenue, that are within a shopping center in New Springville, Staten Island. The parcel includes two big box store buildings (K6) with tenants including Dick’s Sporting Goods and Staples. Raymour & Flanigan is not a tenant in the two buildings, but does occupy a location about a half mile south at 2795 Richmond Avenue.

PincusCo has reported on a recent trend of occupiers buying real estate, including James Dyson of Dyson Inc., Akris, Comedy Cellar and others.

This is not a new strategy for Raymour & Flanigan, based in Liverpool, New York, however, as it owns several retail locations in New York City, including Gravesend, Elmhurst and Marine Park.

A representative for Raymour & Flanigan declined to comment, and Infinity Collective declined to comment.

Raymour & Flanigan made the purchase through the entity Staten Island Richmond Avenue, LLC and Infinity Collective sold under the entity IRE Richmond Ave LLC along with two other sellers, Brenda Ocean Parkway LLC and Transcend Properties LLC.
The deal closed on March 15, 2023 and was recorded on March 20, 2023. The property has 77,260 square feet of built space and 163,298 square feet of additional air rights for a total buildable of 240,145 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $543 and the price per buildable square foot is $174 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.)
Infinity Collective bought the property on March 3, 2020, for $31.5 million from Madison International Realty. It is unclear when the other partner-sellers acquired a stake.

Prior sales and revenue

The 77,260-square-foot property generated revenue of $2.5 million or $33 per square foot, according to the most recent income and expense figures.

The property

The parcel has two buildings with frontage of 299 feet and is 473 feet deep with a total lot size of 192,116 square feet. The lot is irregular. The zoning is C4-1 which allows for up to 1 times floor area ratio (FAR) for commercial and up to 1.25 times FAR for residential. The city-designated market value for the property in 2022 is $17.4 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 $3,875 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 block

On this tax block, PincusCo has identified the owners of two of the 23 commercial properties representing 79,438 square feet of the 2,517,315 square feet. The two identified owners are Infinity Real Estate and Petroleum Marketing Group.
On the tax block, there were two new building construction projects totaling 11,109 square feet. The largest is a 7,311 square-foot assembly (A-2) building submitted by Douglas Adams with plans filed May 1, 2017 and permitted August 15, 2017. The second largest is a 3,798 square-foot business (B) building submitted by Kenneth Labarre with plans filed December 22, 2020 and permitted August 6, 2021.

The majority, or 87 percent of the 2.5 million square feet of built space are retail buildings, with industrial buildings next occupying 12 percent of the space.

Direct link to Acris document. link