ZD Jasper pays $47M to Quadrum, Baron, Simon Dev. for LIC dev site

ZD Jasper Realty through the entity ZDJ Vernon LLC paid $47 million to Quadrum Global, Baron Property Group, and Simon Development through the entity CSC 4540 Property Co, LLC for the industrial building (F1) at 45-40 Vernon Boulevard in Long Island City, Queens and industrial building (E9) at 45-28 Vernon Boulevard in Long Island City, Queens.
The deal closed on April 19, 2024 and was recorded on May 6, 2024. The two properties have 75,050 square feet of built space and 5,500 square feet of additional air rights for a total buildable of 77,298 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $626 and the price per buildable square foot is $608 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 Quadrum Global, Baron Property Group, and Simon Development was Jared White and Anoop Rustgi. The signatory for ZD Jasper Realty was Zhidong Wu. The contract date was November 21, 2023. Commercial Observer reported on the purchase last month, noting the brokers were from JLL.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer ZD Jasper Realty purchased seven properties in four transactions for a total of $88.6 million and has no record it sold any properties over the past 24 months.
The seller Quadrum Global purchased one properties in one transactions for a total of $96 million and had not sold any properties over the same time period.

The property

The industrial building in Long Island City has 75,050 square feet of built space and 5,500 square feet of additional air rights for a total buildable of 77,298 square feet according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 33,149 square feet. The lot is irregular. The zoning is M1-4 which allows for up to 2 times floor area ratio (FAR) for manufacturing. The city-designated market value for the property in 2022 is $3.5 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received $3,750 in ECB penalties and $4,090 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 296-unit, 246,690 square-foot R-2 building. The project was submitted by Brent Carrier and filed by Brent Carrier with plans filed June 9, 2015 and it has not been permitted yet.

The neighborhood

In Long Island City, The bulk, or 32 percent of the 60.1 million square feet of commercial built space are industrial buildings, with elevator buildings next occupying 31 percent of the space. In sales, Long Island City has the 7th highest sale turnover among other neighborhoods in the city with $1.4 billion in sales volume in the last two years. For development, Long Island City is the 7th most active neighborhood among other neighborhoods. It had 6 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space. There were three pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

On the tax block of 45-40 Vernon Boulevard, PincusCo has identified the owners of four of the eight commercial properties representing 77,550 square feet of the 166,700 square feet. The largest owner is Ronni S. Newman, followed by Plaxall and then Peak Capital Advisors.
On the tax block, there were two new building construction projects totaling 299,192 square feet. The largest is a 296-unit, 246,690 square-foot residential (R-2) building submitted by Brent Carrier and filed by Brent Carrier with plans filed June 9, 2015 and it has not been permitted yet. The second largest is a 48-unit, 52,502 square-foot residential (R-2) building submitted by Brent Carrier and filed by Brent Carrier with plans filed May 28, 2015 and it has not been permitted yet.

The majority, or 92 percent of the 166,700 square feet of built space are industrial buildings, with mixed-use buildings next occupying 5 percent of the space.

The seller

The PincusCo database currently indicates that Baron Property Group owned at least four commercial properties in New York City with 0.0 square feet and a city-determined market value of $4.2 million. (Market value is typically about 50% of actual value.) The portfolio has $37 million in debt, borrowed from Kriss Capital. Within the portfolio, the bulk, or 0 percent of the 0.0 square feet of built space are industrial properties, with development properties next occupying 0 percent of the space.
The PincusCo database currently indicates that Quadrum Global owned at least four commercial properties with 547 residential units in New York City with 1,813,291 square feet and a city-determined market value of $316.5 million. (Market value is typically about 50% of actual value.) The portfolio has $310.7 million in debt, with top three lenders as Affinius Capital, Madison Realty Capital, and RMWC respectively. Within the portfolio, the bulk, or 75 percent of the 1,813,291 square feet of built space are office properties, with elevator properties next occupying 13 percent of the space. The bulk, or 75 percent of the built space, is in Queens, with Brooklyn next at 17 percent of the space.

The buyer

The PincusCo database currently indicates that ZD Jasper Realty owned at least 16 commercial properties with 207 residential units in New York City with 121,765 square feet and a city-determined market value of $40 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 41 percent of the 121,765 square feet of built space are elevator properties, with industrial properties next occupying 36 percent of the space. The bulk, or 60 percent of the built space, is in Queens, with Manhattan next at 40 percent of the space.

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