United Construction pays $71.1M to Vornado for dev site in Rego Park

93-30 93rd Street (Credit - Google)

93-30 93rd Street (Credit - Google)

United Construction & Development Group through the entity Rego Park Tower LLC paid $71.1 million to Vornado Realty Trust through the entity Alexander’s of Rego Park III, Inc. for the industrial building (G7) at 93-30 93rd Street in Rego Park, Queens.
United Construction & Development Group financed the purchase with a $40 million acquisition loan from Maxim Capital Group.
The deal closed on May 19, 2023 and was recorded on June 7, 2023. The property has zero square feet of built space and 840,139 square feet of additional air rights for a total buildable of 840,139 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $N/A and the price per buildable square foot is $84 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 Vornado Realty Trust was Steven J. Borenstein. The signatory for United Construction & Development Group was Jiashu Xu also known as Chris Xu.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer United Construction & Development Group purchased five properties in four transactions for a total of $151.4 million and sold 106 condo units in one transaction for a total of $161.3 million over the past 24 months.
The seller Vornado Realty Trust had not purchased any other properties and sold 22 properties in 16 transactions for a total of $712.4 million over the same time period.

The property

The parcel has frontage of 264 feet and is 241 feet deep with a total lot size of 139,558 square feet. The lot is irregular. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $6.2 million.

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 Rego Park, The majority, or 65 percent of the 10.6 million square feet of commercial built space are elevator buildings, with mixed-use buildings next occupying 13 percent of the space. In sales, Rego Park has had very little sales volume relative to other neighborhoods with $134.7 million in sales volume in the last two years. For development, Rego Park has had very little major development activity relative to other neighborhoods.It had 468,799 square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owner of the one commercial property that spans that spans zero square feet on the block.The identified owner is Vornado Realty Trust.
There are no active new building construction projects on this tax block.

All properties are industrial.

The seller

The PincusCo database currently indicates that Vornado Realty Trust owned at least 57 commercial properties with five residential units in New York City with 15,245,100 square feet and a city-determined market value of $6.8 billion. (Market value is typically about 50% of actual value.) The portfolio has $5.1 billion in debt, with top three lenders as JPMorgan Chase, Goldman Sachs, and ING Capital respectively. Within the portfolio, the bulk, or 77 percent of the 15,245,100 square feet of built space are office properties, with retail properties next occupying 13 percent of the space. The bulk, or 96 percent of the built space, is in Manhattan, with Bronx next at 4 percent of the space.

The buyer

The PincusCo database currently indicates that United Construction & Development Group owned at least 14 commercial properties with 317 residential units in New York City with 903,241 square feet and a city-determined market value of $71.8 million. (Market value is typically about 50% of actual value.) The portfolio has $437.9 million in debt, with top three lenders as Bank of China, Centennial Bank, and Bank Leumi respectively. Within the portfolio, the bulk, or 46 percent of the 903,241 square feet of built space are O8 properties, with elevator properties next occupying 34 percent of the space. They are all located in Queens.

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