Zhang Wu pays $3.6M to AAFE for retail in Jackson Heights

Zhang Wu and Xu Zhang Wu paid $3.6 million to the AAFE Community Development Fund through the entity Community Homes Housing Development Fund Co., Inc. for the retail building (K2) at 93-03 Roosevelt Avenue in Jackson Heights, Queens and retail building (K2) at 93-05 Roosevelt Avenue in Jackson Heights, Queens.
The deal closed on April 21, 2023 and was recorded on May 12, 2023. The two properties have 5,200 square feet of built space and 4,520 square feet of additional air rights for a total buildable of 9,720 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $692 and the price per buildable square foot is $370 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 AAFE Community Development Fund was Thomas Yu. The signatory for Zhang Wu and Xu Zhang Wu was Zhang Wu and Xu Zhang Wu. The contract date was January 4, 2022.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 93-03 Roosevelt Avenue.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Zhang Wu had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller AAFE Community Development Fund had not purchased any other properties and had not sold any properties over the same time period. The two properties with a total of 5,200 square feet of built space generated revenue of $252,569 per year or $49 per square foot. The sale price per square foot was $692.

The property

The retail building in Jackson Heights has 5,200 square feet of built space and 4,520 square feet of additional air rights for a total buildable of 9,720 square feet according to a PincusCo analysis of city data. The parcel has frontage of 20 feet and is 100 feet deep with a total lot size of 2,000 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $976,000.

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 $9,665 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 Jackson Heights, The bulk, or 42 percent of the 16.4 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 18 percent of the space. In sales, Jackson Heights has had very little sales volume relative to other neighborhoods with $216.1 million in sales volume in the last two years. For development, Jackson Heights has had very little major development activity relative to other neighborhoods.It had 469,964 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On the tax block of 93-03 Roosevelt Avenue, PincusCo has identified the owners of one of the 12 commercial properties representing 2,540 square feet of the 40,987 square feet. The identified owner is Hyun Jong Seo.
There are no active new building construction projects on this tax block.

The majority, or 47 percent of the 40,987 square feet of built space are retail buildings, with mixed-use buildings next occupying 32 percent of the space.

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