Yitzchok Katz pays $28.6M to AHRC New York City for 2 parcels in Long Island City

Yitzchok Katz paid $28.6 million to AHRC New York City for two specialty properties in Long Island City in two separate transactions.

In the first, Yitzchok Katz through the entity 39th Ave Holdings 1 LLC paid $19.1 million to AHRC New York City through the entity Ahrc Nyc New Projects, Inc. for specialty building at 32-03 39th Avenue in Long Island City, Queens.
The property has 22,500 square feet of built space and 64,950 square feet of additional air rights for a total buildable of 87,535 square feet according to PincusCo analysis of city data. The sale price per built square foot is $849 and the price per buildable square foot is $218 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 AHRC New York City was Amy West. The signatory for Yitzchok Katz was Yitzchok Katz.

In the second, Yitzchok Katz through the entity 39th Ave Holdings 2 LLC paid $9.5 million to AHRC New York City through the entity Ahrc Nyc New Projects, Inc. for industrial building at N/A 39th Avenue in Long Island City, Queens.
The property has zero square feet of built space and 44,000 square feet of additional air rights for a total buildable of 44,000 square feet according to PincusCo analysis of city data. The sale price per buildable square foot is $216 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 deal closed on June 2, 2022 and was recorded on June 16, 2022.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Yitzchok Katz purchased 10 properties in five transactions for a total of $55.3 million and has no record it sold any properties over the past 24 months.
The seller AHRC New York City had not purchased any other properties and had not sold any properties over the same time period.

The property

The 32-03 39th Avenue parcel has frontage of 75 feet and is 201 feet deep with a total lot size of 17,507 square feet. The lot is irregular. The zoning is M1-3/R7X which allows for up to 5 times floor area ratio (FAR) for manufacturing and up to 5 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.6 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 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 $5 million on this tax lot.

The neighborhood

In Long Island City, the bulk, or 33 percent of the 66.2 million square feet of commercial built space are residential elevator buildings, with industrial buildings next occupying 30 percent of the space. In sales, Long Island City has 4.2 times the average sales volume among other neighborhoods with $1.2 billion in sales volume in the last two years and is the highest in Queens. For development, Long Island City is the 2nd most active neighborhood among other neighborhoods. It had 9.2 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

There are no active new building construction projects on this tax block.

The majority, or 46 percent of the 86,939 square feet of built space are industrial buildings, with residential elevator buildings next occupying 26 percent of the space.

The buyer

The PincusCo database currently indicates that Yitzchok Katz owned at least 17 commercial properties with 124,632 square feet and a city-determined market value of $24.4 million. (Market value is typically about 50% of actual value.) The portfolio has $152.1 million in debt, with top three lenders as SCALE Lending, Slate Property Group, and Scale Lending respectively. Within the portfolio, the bulk, or 63 percent of the 124,632 square feet of built space are elevator properties, with retail properties next occupying 17 percent of the space. The bulk, or 92 percent of the built space, is in Brooklyn, with Queens next at 8 percent of the space.

Surrounding

Within a 400-foot radius of 32-03 39th Avenue, Pincusco identified one commercial real estate item of interests occurred over the past 24 months.
It was a new building permit application filed on March 11, 2022 for a 31,755-square-foot R-2 building with 41 residential units at 38-38 32nd Street.

Direct link to Acris document. link