Terreno Realty pays $23M for industrial in Long Island City

Terreno Realty Corporation through the entity Terreno 9th St. LLC paid $23 million to Carlos Escobar through the entity 9th St. Management, LLC for the industrial building (F1) at 42-11 9th Street in Long Island City, Queens.
The deal closed on March 6, 2023 and was recorded on March 14, 2023. The property has 105,000 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $219 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 Carlos Escobar was Carlos E. Escobar.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Terreno Realty Corporation purchased one property in one transaction for a total of $4.5 million and has no record it sold any properties over the past 24 months.
The seller Carlos Escobar had not purchased any other properties and had not sold any properties over the same time period. The 105,000-square-foot property generated revenue of $1.7 million or $16 per square foot, according to the most recent income and expense figures.

The property

The 42-11 9th Street parcel has frontage of 200 feet and is 254 feet deep with a total lot size of 49,400 square feet. The lot is irregular. The zoning is M1-4 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $7.8 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 received one DOB violation in the last year.

Development

On the lot, there is one active new building construction project for a 321,308 square-foot B building. The project was developed by Todd Rechler with plans filed December 27, 2019 and it has not been permitted yet.

The neighborhood

In Long Island City, the bulk, or 33 percent of the 62.1 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 9th highest sale turnover among other neighborhoods in the city with $1.6 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 the tax block, there was one new building construction project filed totaling 321,308 square feet. It is a N/A-unit, 321,308-square-foot B building developed by Todd Rechler with plans filed December 27, 2019 and it has not been permitted yet.

The majority, or 96 percent of the 164,401 square feet of built space are industrial buildings, with office buildings next occupying 4 percent of the space.

The buyer

The PincusCo database currently indicates that Terreno Realty Corporation owned at least four commercial properties in New York City with 194,628 square feet and a city-determined market value of $15.5 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are industrial properties. They are all located in Brooklyn.

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