Shashin Gandhi pays $7.3M to John Kapetanos for retail in Hillcrest

Shashin S. Gandhi through the entity Parsons Retail LLC paid $7.3 million to John Kapetanos through the entity Cgjg Realty Corp. for retail building (K1) at 82-65 Parsons Boulevard in Hillcrest, Queens.
The deal closed on October 14, 2022 and was recorded on October 27, 2022. The property has 12,202 square feet of built space and 30,104 square feet of additional air rights for a total buildable of 42,400 square feet according to PincusCo analysis of city data. The sale price per built square foot is $602 and the price per buildable square foot is $173 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 September 7, 2006, for $4.5 million. The signatory for John Kapetanos was John Kapetanos. The signatory for Shashin S. Gandhi was Shashin S. Gandhi.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Shashin S. Gandhi had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller John Kapetanos had not purchased any other properties and had not sold any properties over the same time period. The 12,202-square-foot property generated revenue of $379,116 or $31 per square foot, according to the most recent income and expense figures.

The property

The 82-65 Parsons Boulevard parcel has frontage of 180 feet and is 100 feet deep with a total lot size of 21,200 square feet. The lot is irregular. The zoning is R5D which allows for up to 2 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.7 million. Fairview Partners bought a prior note secured by the building on March 17, 2022.

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 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 $5 million on this tax lot.

The neighborhood

In Hillcrest, the majority, or 90 percent of the 6.8 million square feet of commercial built space are specialty buildings, with elevator buildings next occupying 4 percent of the space. In sales, Hillcrest has not had any sales in the last two years. For development, Hillcrest has had very little major development activity relative to other neighborhoods.It had 64,357 square feet of commercial and multi-family construction under development in the last two years, which represents 0.95 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the four commercial properties representing 12,202 square feet of the 36,762 square feet. The identified owner is John Kapetanos.
There are no active new building construction projects on this tax block.

The majority, or 62 percent of the 36,762 square feet of built space are hotel buildings, with retail buildings next occupying 33 percent of the space.

The seller

The PincusCo database currently indicates that John Kapetanos owned at least six commercial properties in New York City with 91,642 square feet and a city-determined market value of $8.5 million. (Market value is typically about 50% of actual value.) The portfolio has $6.3 million in debt, with top three lenders as First National Bank of Long Island, Fairview Partners, and Fairview Partners Investment Management respectively. Within the portfolio, the bulk, or 80 percent of the 91,642 square feet of built space are walkup properties, with retail properties next occupying 13 percent of the space. They are all located in Queens.

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