New York Real Estate Journal | August 2nd, 2016
Queens, NY GFI Realty Services, LLC has arranged the $195-million sale of 23-02 49th Ave., a seven-story, 656,000 s/f warehouse in the Long Island City neighborhood. The property, which traded for an in-place cap rate below 3%, is fully occupied by three tenants whose leases are expiring in 2020.
The transaction was arranged by GFI Realty managing director of investment sales Yosef Katz and director Yisroel Pershin. The buyer plans on converting the building into creative office space upon the termination of the current lease.
“The extremely low cap rate demonstrates the strong confidence that the buyers have in Long Island City’s long-term potential,” said Katz. “While value-add renovations and subsequent lease-up are several years out, the buyers recognized this as a unique opportunity to capitalize on an extremely well-located asset.”
The majority of the building is occupied by the New York City Housing Authority. The other tenants are Eagle Transfer Company and Mayo Studios.
“Long Island City office is booming, and industrial conversion is bringing many new office properties to market,” Pershin said. “Once the property is converted to office use, the buyers anticipate strong leasing activity because of the unmet demand for creative office facilities and the ability to offer space at a 50% discount to Manhattan rates.”
The property is located near the 7 train and the LIRR, providing access to Manhattan, Queens and Long Island.
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