RJ Capital pays $7.5M to A&R for retail in Briarwood

RJ Capital Holdings through the entity RJ Blvd IV LLC paid $7.5 million to A&R Properties Group through the entity 138-13 QB Holdings LLC for the retail building (K1) at 138-13 and 138-21 Queens Boulevard in Briarwood, Queens.
The deal closed on May 24, 2023 and was recorded on May 30, 2023. The two properties have 8,890 square feet of built space and 26,550 square feet of additional air rights for a total buildable of 35,400 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $843 and the price per buildable square foot is $211 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 A&R Properties Group was Noorollah Asherian, Shokrollah Rehanian, and Farajollah Benji. The signatory for RJ Capital Holdings was Rudolf Abramov. The seller is the family owned A&R Properties. https://www.arproperties.com/about

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 138-21 Queens Blvd..

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer RJ Capital Holdings purchased one property in one transactions for a total of $3.3 million and has no record it sold any properties over the past 24 months.
The seller A&R Properties Group had not purchased any other properties and had not sold any properties over the same time period. The two properties with a total of 8,890 square feet of built space generated revenue of $350,250 per year or $39 per square foot. The sale price per square foot was $844.

The property

The retail building in Briarwood has 8,890 square feet of built space and 26,550 square feet of additional air rights for a total buildable of 35,400 square feet according to a PincusCo analysis of city data. The parcel has frontage of 94 feet and is 100 feet deep with a total lot size of 11,800 square feet. The lot is irregular. 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 $1.9 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have not received any significant violations 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 Briarwood, The majority, or 66 percent of the 5.2 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 14 percent of the space. In sales, Briarwood has had very little sales volume relative to other neighborhoods with $171.1 million in sales volume in the last two years. For development, Briarwood has had very little major development activity relative to other neighborhoods.It had 78,154 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On the tax block of 138-21 Queens Blvd., PincusCo has identified the owners of three of the six commercial properties representing 121,220 square feet of the 146,310 square feet. The largest owner is Syu Properties, followed by S.W. Management and then Rj Capital Holdings.
There are no active new building construction projects on this tax block.

The majority, or 69 percent of the 146,310 square feet of built space are elevator buildings, with retail buildings next occupying 31 percent of the space.

The seller

The PincusCo database currently indicates that A&R Properties Group owned at least three commercial properties with 22 residential units in New York City with 15,000 square feet and a city-determined market value of $5.2 million. (Market value is typically about 50% of actual value.) The portfolio has $42.5 million in debt, borrowed from Valley National Bank and Arbor Realty Trust. Within the portfolio, the bulk, or 100 percent of the 15,000 square feet of built space are elevator properties, with development properties next occupying 0 percent of the space. They are all located in Queens.

The buyer

The PincusCo database currently indicates that Rj Capital Holdings owned at least eight commercial properties with 74 residential units in New York City with 371,397 square feet and a city-determined market value of $61.4 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 38 percent of the 371,397 square feet of built space are elevator properties, with retail properties next occupying 25 percent of the space. The bulk, or 67 percent of the built space, is in Queens, with Brooklyn next at 29 percent of the space.

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