Xiaojun Pan pays $14M to Chon Property for hotel in Flushing

Xiaojun Pan through the entity Dream Flushing Hotel, LLC paid $14 million to Chon Property through the entity Chon Property, Corp. for the hotel building (HB) at 137-72 Northern Boulevard in Flushing, Queens. The expected use is cash flowing.
The deal closed on September 19, 2024 and was recorded on October 8, 2024. The property has 27,358 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $511 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 December 29, 2003, for $2.6 million. The signatory for Chon Property was Steve Chon. The signatory for Xiaojun Pan was Xiaojun Pan. The contract date was July 23, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Xiaojun Pan had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Chon Property had not purchased any other properties and had not sold any properties over the same time period.

The property

The hotel building in Flushing has 27,358 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 111 feet deep with a total lot size of 5,100 square feet. The lot is irregular. The zoning is C4-3 which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 2.43 times FAR for residential. The city-designated market value for the property in 2022 is $6.9 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 received four DOB violations and $4,050 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on March 20, 2014. 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 Flushing, The bulk, or 45 percent of the 37.7 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 20 percent of the space. In sales, Flushing has 3.2 times the average sales volume among other neighborhoods with $807.3 million in sales volume in the last two years and is the 2nd highest in Queens. For development, Flushing has 1.9 times the average amount of major developments relative to other neighborhoods and is the 4th highest in Queens. It had 2.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 14 of the 56 commercial properties representing 319,357 square feet of the 566,670 square feet. The largest owner is Ciampa Organization, followed by New York Police Department and then Weinberger Properties.
On the tax block, there were two new building construction projects totaling 110,424 square feet. The largest is a 72,563 square-foot business (B) building submitted by Tian Ji Li with plans filed March 29, 2021 and it has not been permitted yet. The second largest is a seven-unit, 37,861 square-foot residential (R-2) building submitted by Zhao Jiang with plans filed January 12, 2017 and it has not been permitted yet.

The majority, or 34 percent of the 566,670 square feet of built space are elevator buildings, with mixed-use buildings next occupying 26 percent of the space.

The seller

The PincusCo database currently indicates that Chon Property owned at least one commercial property in New York City with 99,239 square feet and a city-determined market value of $16.8 million. (Market value is typically about 50% of actual value.) The portfolio has $15 million in debt, borrowed from Pacific City Bank. The portfolio consists of at least a single P6 property. It is located in Queens.

The buyer

The PincusCo database currently indicates that Xiaojun Pan owned at least one commercial property in New York City with 14,786 square feet and a city-determined market value of $3.3 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single hotel property. It is located in Queens.

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