Sung Ja Bae pays $6.3M for industrial in Richmond Hill

Sung Ja Bae through the entity SJ Richmond LLC paid $6.3 million to Craig R. Strauss through the entity Electron Top Holding, LLC for industrial building (F9) at 126-15 89th Avenue in Richmond Hill, Queens.
The deal closed on December 8, 2022 and was recorded on March 8, 2023. The property has 19,750 square feet of built space and 3,312 square feet of additional air rights for a total buildable of 23,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $317 and the price per buildable square foot is $272 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 Craig R. Strauss was Craig R. Strauss. The signatory for Sung Ja Bae was Sung Ja Bae. Sung Ja Bae financed the purchase with a $4 million purchase money mortgage.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Sung Ja Bae had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Craig R. Strauss had not purchased any other properties and had not sold any properties over the same time period. The 19,750-square-foot property generated revenue of $331,405 or $17 per square foot, according to the most recent income and expense figures.

The property

The 126-15 89th Avenue parcel has frontage of 189 feet and is 100 feet deep with a total lot size of 18,400 square feet. The zoning is R5 which allows for up to 1.25 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.2 million.

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 Richmond Hill, the bulk, or 26 percent of the 6.4 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 20 percent of the space. In sales, Richmond Hill has the 23rd highest sale turnover among other neighborhoods in Queens with $92.9 million in sales volume in the last two years. For development, Richmond Hill has had very little major development activity relative to other neighborhoods.It had 169,612 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the eight commercial properties representing 36,000 square feet of the 68,056 square feet. The identified owner is A&E Real Estate Holdings.
there are no active new building construction projects on this tax block.

The majority, or 53 percent of the 68,056 square feet of built space are walkup buildings, with industrial buildings next occupying 33 percent of the space.

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