Xiao Ke Tang pays $3.2M for Sunnyside dev site with plans for 27 units

Xiao Ke Tang through the entity 43-25 52 LLC paid $3.2 million to Gabriel Blau and Joshua Deutsch through the entity Gabriel Blau 2012 Irrevocable Trust for the midblock specialty building at 43-25 52nd Street in Sunnyside, Queens.
The deal closed on May 6, 2022 and was recorded on May 18, 2022. The property has 10,000 square feet of built space and 10,000 square feet of additional air rights for a total buildable of 20,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $325 and the price per buildable square foot is $162 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 seller bought the property on July 10, 2020, for $1,000,000. The signatory for Gabriel Blau and Joshua Deutsch was Gabriel Blau and Joshua Deutsch. The signatory for Xiao Ke Tang was Xiao Ke Tang.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Xiao Ke Tang had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Gabriel Blau had not purchased any other properties and had not sold any properties over the same time period.

The property

The 43-25 52nd Street parcel has frontage of 50 feet and is 100 feet deep with a total lot size of 5,000 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $756,000.

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 $1,250 in ECB penalties and $1,250 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 27-unit, 26,973-square-foot R-2 building. The project was developed by Xiaoke Tang with plans filed April 13, 2022 and it has not been permitted yet.

The neighborhood

In Sunnyside, the bulk, or 35 percent of the 23.5 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 19 percent of the space. In sales, Sunnyside has had very little sales volume relative to other neighborhoods with $174.7 million in sales volume in the last two years. For development, Sunnyside has had very little major development activity relative to other neighborhoods.It had 208,722 square feet of commercial and multi-family construction under development in the last two years, which represents 0.89 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 11 of the 23 commercial properties representing 122,637 square feet of the 175,583 square feet. The largest owner is George Tsilogiannis, followed by Ovidiu Mihu and then ZD Jasper Realty. There are six active new building construction projects totaling 179,847 square feet. The largest is a 87-unit, 98,530-square-foot R-2 building developed by Kathy Ho with plans filed January 13, 2022 and it has not been permitted yet. The second largest is a 27-unit, 26,973-square-foot R-2 building developed by Xiaoke Tang with plans filed April 13, 2022 and it has not been permitted yet.

The majority, or 36 percent of the 196,306 square feet of built space are residential walkup buildings, with residential elevator buildings next occupying 34 percent of the space.

The buyer

The PincusCo database currently indicates that Xiao Ke Tang owned at least two commercial properties with 89,935 square feet and a city-determined market value of $17.3 million. (Market value is typically about 50% of actual value.) The portfolio has $30.3 million in debt, borrowed from Popular Bank and Cathay Bank. Within the portfolio, all identified are residential elevator properties. They are all located in Queens.

Surrounding

Within a 400-foot radius of 43-25 52nd Street, PincusCo identified nine commercial real estate items of interests occurred over the past 24 months.
Of those nine items, four were in new building development. There were one new building permit application and three new building permits. The most recent of these four items was a permit on January 28, 2022 for a 18,903-square-foot R-2 building with 24 residential units at 43-34 53rd St.
One of those nine items was a sale which Zhidong Wu bought the 14,000-square-foot, one-unit industrial (E1) on 43-21 52nd Street and three other properties for $9.6 million from Roy W. Pomerantz on January 4, 2022.
Of those nine items, four were loans above $5 million totaling $37.3 million. The most recent of the four was Yongyut Limleartvate which borrowed $8.3 million from Emerald Creek Capital secured by the 13,035-square-foot, one-unit industrial (G2) on 52-19 Queens Boulevard and two other properties on March 16, 2022.

Direct link to Acris document. link