Tavros, Charney pays $68.3M to Toyoko Inn Co. for LIC dev site

Tavros Capital and Charney Companies through the entity Court Square 45th Ave 2 LLC paid $68.3 million to Toyoko Inn Co. through the entity Toyoko Inn New York LLC for development parcel (V1) at 24-19 Jackson Avenue in Long Island City, Queens.
The deal closed on July 20, 2022 and was recorded on August 3, 2022. The property has zero square feet of built space and 178,200 square feet of additional air rights for a total buildable of 178,200 square feet according to PincusCo analysis of city data. The sale price per buildable square foot is $383 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 Toyoko Inn Co. was Gen Seike. The signatory for Tavros Capital and Charney Companies was Nicholas Silvers. The contract date was March 7, 2022. PincusCo first reported in April 2022 the sale was in contract with an asking price of approximately $60 million.  The parcel, with an address of 24-09 Jackson Avenue and 24-11 Jackson Avenue, had previously been slated to be a 50-story hotel with more than 1,000 rooms.

That project stalled and the Japanese hotel company hired a CBRE team led by Dan Kaplan to sell the site, with an approximate price of $60 million, according to The Real Deal. The hotel developer paid about $26 million over several years to assemble the parcel. The site can support a residential project of up to 267,000 square feet as of right, according to a report in The Real Deal from January 2022.

PincusCo reported earlier this year that Charney Companies on February 11, filed a permit application for construction of a 54-unit, 61,639-square-foot project at this site.

The property

The 24-19 Jackson Avenue parcel has frontage of 154 feet and is 100 feet deep with a total lot size of 17,820 square feet. The lot is irregular. The zoning is C5-3 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $4.8 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

On these lots, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 322,496 square feet. The largest is a new building project for a 1,260-unit, 260,857-square-foot R-1 building developed by Takao Endo with plans filed September 27, 2016 and it has not been permitted yet. The second largest is a new building project for a 54-unit, 61,639-square-foot R-2 building developed by Samuel Charney with plans filed February 11, 2022 and it has not been permitted yet.

The neighborhood

In Long Island City, the bulk, or 34 percent of the 63.3 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 32 percent of the space. In sales, Long Island City has the 6th highest sale turnover among other neighborhoods in the city with $1.7 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 8.8 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.

The block

On this tax block, PincusCo has identified the owners of one of the four commercial properties representing zero square feet of the 16,030 square feet. The identified owner is Tavros Capital.
There are three active new building construction projects totaling 611,126 square feet. The largest is a 285-unit, 288,630-square-foot R-2 building developed by Dov Barnett with plans filed March 9, 2020 and permitted May 5, 2022. The second largest is a 1,260-unit, 260,857-square-foot R-1 building developed by Takao Endo with plans filed September 27, 2016 and it has not been permitted yet.

The majority, or 100 percent of the 16,030 square feet of built space are office buildings, with development buildings next occupying 0 percent of the space.

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