SB Development pays $8.7M for dev site in Long Island City

SB Development paid $8.7 million for two adjacent development parcels at 29-13 and 29-15 40th Road in Long Island City, Queens, to the Lupoli family in two separate transactions. These two properties expand a development site SB Development acquired in 2022 for $19 million. The firm plans a 190-unit residential tower, but did not disclose if it would be rentals or condos.

In the larger of the new transactions, SB Development through the entity LIC 40th Avenue Owner LLC paid $5.8 million to Matthew Lupoli through the entity 29-15 40 Road LLC for the industrial building (G1) at 29-15 40th Road in Long Island City, Queens.

The deal closed on November 9, 2023 and was recorded on November 17, 2023. The property has 5,000 square feet of built space and 23,011 square feet of additional air rights for a total buildable of 27,995 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,160 and the price per buildable square foot is $207 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 Matthew Lupoli was Matthew Lupoli. The signatory for SB Development was Joseph Stern. The contract date was November 2, 2023.

In the smaller of the new transactions, SB Development through the entity LIC 40th Ave Owner LLC paid $2.9 million to Christopher Lupoli, Daniel Lupoli, and Corinne Lupoli through the entity Lupoli, Christopher for the specialty building (Z9) at 29-13 40th Road in Long Island City, Queens.

 

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer SB Development purchased one property for $19 million and has no record it sold any properties over the past 24 months.
The seller Lupoli family 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 5,000 square feet of built space and 23,011 square feet of additional air rights for a total buildable of 27,995 square feet according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 112 feet deep with a total lot size of 5,599 square feet. The zoning is M1-3/R7X which allows for up to 5 times floor area ratio (FAR) for manufacturing and up to 5 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $523,000.

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 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 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 9th highest sale turnover among other neighborhoods in the city with $1.8 billion in sales volume in the last two years. For development, Long Island City is the 4th most active neighborhood among other neighborhoods. It had 8.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 14 percent of the neighborhood’s built space. There were two 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 nine of the 15 commercial properties representing 261,361 square feet of the 349,749 square feet. The largest owner is Yali Li, followed by SB Development Group and then Perla Alves.
On the tax block, there were three new building construction projects totaling 41,414 square feet. The largest is a 26-unit, 29,674 square-foot residential (R-2) building submitted by SB Development and filed by Joseph Stern with plans filed March 4, 2022 and it has not been permitted yet. The second largest is a 5,870 square-foot mercantile (M) building submitted by Kyong Park with plans filed February 12, 2016 and permitted August 14, 2019.

The majority, or 45 percent of the 349,749 square feet of built space are hotel buildings, with industrial buildings next occupying 43 percent of the space.

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