ZD Jasper Realty signs ground lease valued at $5.7M in Sunnyside

ZD Jasper Realty through the entity ZDJ Queens 50 LLC as tenant signed a ground lease valued at $5.7 million to Naum Freidman through the entity Dafre, LLC as landlord for the retail building (K5) at 50-01 Queens Boulevard in Sunnyside, Queens.
The deal closed on February 28, 2024 and was recorded on February 29, 2024. The property has 3,531 square feet of built space and 78,738 square feet of additional air rights for a total buildable of 82,190 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,627 and the price per buildable square foot is $69 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 October 30, 2013, for $5.3 million. The signatory for Naum Freidman was Naum Freidman. The signatory for ZD Jasper Realty was Zhidong Wu, also known as Tom Wu. This is a 99-year ground lease.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer ZD Jasper Realty purchased nine properties in four transactions for a total of $134.6 million and has no record it sold any properties over the past 24 months.
The seller Naum Freidman had not purchased any other properties and had not sold any properties over the same time period.

The property

The retail building in Sunnyside has 3,531 square feet of built space and 78,738 square feet of additional air rights for a total buildable of 82,190 square feet according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 195 feet deep with a total lot size of 16,438 square feet. The lot is irregular. The zoning is R7X which allows for up to 5 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.8 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 $3,900 in OATH penalties in the last year.

Development

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 Sunnyside, The bulk, or 32 percent of the 15.9 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 29 percent of the space. In sales, Sunnyside has had very little sales volume relative to other neighborhoods with $187.3 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 294,381 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the four commercial properties representing 86,499 square feet of the 121,390 square feet. The two identified owners are Ronald Ji and Jenny Ma.
On the tax block, there was one new building construction project filed totaling 45,056 square feet. It is a 31-unit, 45,056 square-foot hotel/dormitory/shelter (R-1) building submitted by Ronald Ji and filed by Ronald Ji with plans filed December 17, 2014 and it has not been permitted yet.

The majority, or 66 percent of the 121,390 square feet of built space are elevator buildings, with mixed-use buildings next occupying 26 percent of the space.

The buyer

The PincusCo database currently indicates that Zd Jasper Realty owned at least 15 commercial properties with 207 residential units in New York City with 118,234 square feet and a city-determined market value of $38.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 42 percent of the 118,234 square feet of built space are elevator properties, with industrial properties next occupying 37 percent of the space. The bulk, or 59 percent of the built space, is in Queens, with Manhattan next at 41 percent of the space.

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