Vichai Charalaivan pays $18M for two industrial properties in Maspeth

Vichai Charalaivan through the entity 143 Grand Street LLC paid $18 million to Manny Tzvellis through the entity Hi Tech 5920 LLC for industrial building (F1) at 59-20 56th Avenue and another parcel on 56th Avenue, both in Maspeth, Queens.
The deal closed on June 15, 2022 and was recorded on July 5, 2022. The two properties have 36,400 square feet of built space and 3,622 square feet of additional air rights for a total buildable of 39,900 square feet according to PincusCo analysis of city data. The sale price per built square foot is $494 and the price per buildable square foot is $451 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 PincusCo database currently indicates that Vichai Charalaivan owned at least two commercial properties with 48,178 square feet and a city-determined market value of $3.2 million. (Market value is typically about 50% of actual value.) The portfolio has $6.5 million in debt, borrowed from Cathay Bank. Within the portfolio, all identified are industrial properties. The bulk, or 82 percent of the built space, is in Brooklyn, with Queens next at 18 percent of the space.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 59-20 56th Avenue.

Prior sales and revenue

Out of the two properties, one with a total of 36,400 square feet of built space generated revenue of $373,239 per year.

The property

The 59-20 56th Avenue parcel has frontage of 233 feet and is 233 feet deep with a total lot size of 37,400 square feet. The lot is irregular. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing. The city-designated market value for the property in 2022 is $2.8 million.
The second 56th Road parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,500 square feet. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing. The city-designated market value for the property in 2022 is $86,000.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received four DOB 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 Maspeth, the majority, or 73 percent of the 20.7 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 9 percent of the space. In sales, Maspeth has 2.2 times the average sales volume among other neighborhoods with $721.4 million in sales volume in the last two years and is the 3rd highest in Queens. For development, Maspeth has 2.7 times the average amount of major developments relative to other neighborhoods and is the 6th highest in Queens. It had 2.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 13 percent of the neighborhood’s built space.

The block

On the tax block of 59-20 56th Avenue, PincusCo has identified the owners of two of the 14 commercial properties representing 21,500 square feet of the 88,512 square feet. The two identified owners are Mack Real Estate Group and Stanislaw Madej. There are no active new building construction projects on this tax block.

The majority, or 70 percent of the 88,512 square feet of built space are industrial buildings, with residential walkup buildings next occupying 21 percent of the space.

Surrounding

Within a 400-foot radius of 59-20 56th Avenue, Pincusco identified one commercial real estate item of interests occurred over the past 24 months.
It was a permit application filed on October 22, 2021 for the $1 million renovation of 3,001-square-foot U building with zero residential units at 59-40 55th Drive.

Direct link to Acris document. link