32-31 Greenpoint Avenue Long Island City, NY 11101
A 7-Unit 5,413 Sq.Ft. Income Producing Mixed-Use Property Located in a Qualified Opportunity Zone
PETER CARILLO JAMES STAVRAKIS HKS REAL ESTATE ADVISORS, LLC
Principal, Senior Managing Director Associate Broker, Investment Sales 38 West 21st Street, 8th Floor Office: 212-254-1600 x118 Office: 212-254-1600 x112 New York, New York 10010 [email protected] [email protected] Office: 212-254-1600 INVESTMENT HIGHLIGHTS
Owner User + Opportunity Zone Below Replacement Value The 1,500 SF retail space is vented and would be great for a food-related, Comparable land sales in the area range from $200 to $250 per square grocery, or delivery business. Within a 15-minute drive you can reach the foot. Construction costs in NYC are the biggest variable when it comes to growing neighborhoods of Long Island City, Greenpoint, Astoria, Williamsburg, construction of affordable housing as labor wages continue to increase. Sunnyside and Woodside. This provides access to an estimated population of 32-31 Greenpoint Avenue represents the opportunity to purchase a 473,000 people who median household income of $62,810. Starting a business property below replacement value. in this property using capital gains will allow an investor to qualify for the tax benefits of the opportunity zone program. Long Term Assemblage – Last Mile Logistics The M1-1 zoning for the area gives rise to the opportunity to assemble the Long Term Tenancy adjacent lots over time and develop a last-mile logistics distribution center. The tenancy in the property has been around for decades providing the buyer with opportunity to turn over units, create new spaces, and set new rents Transportation for the property. Access to I-278 and I-495 interstate highway. The B24 bus runs along Greenpoint Avenue and takes straphangers from Greenpoint Brooklyn, up to Development in the Area Queens BLVD and then back south over the Kosciusko Bridge to Williamsburg. Approximately 21,300 residential units have been delivered to Long Island The 7 and G Subways lines are accessible via the B24. Five (5) of the MTA’s LIRR City since 2003 with another 18,700 in the planning or construction phase. branches stop at the Hunsterspoint Avenue stop. Total commercial (non-residential) development completed in that time frame exceeds 10.5 million square feet with another 9.5 million in the planning or construction phase. More specifically, south of the LIRR tracks, the completed development activity is over 3 million square feet with another 1.1 million square feet in the planning or construction pipeline.
Live + Work Opportunity The potential buyer, could walk out the back door of their business after closing and into their duplex apartment to relax. They can self-manage the building to reduce expenses further.
2 / 32-31 Greenpoint Avenue, Long Island City, NY 11101 / HKS Real Estate Advisors www.hks.com EXECUTIVE SUMMARY
32-31 Greenpoint Avenue is located in Long Island City (LIC) and features two buildings on one tax lot. The front building is a 3-story mixed use property. The rear “carriage house” is a two-story residential building.
The property is located in a Qualified Opportunity Zone which presents unprecedented long term tax benefits for substantial improvements to the property or for starting a business in the ground floor retail space.
The asset enjoys Tax Class 2A status which protects the buyer from sharp increases in property taxes. The nearby 7 Subway line, along with (13) bus lines and the Long Island Expressway (I-495), provide a multitude of travel options to Manhattan and other popular areas throughout Brooklyn and Queens.
This presents an array of investment opportunities. An entrepreneur-user would benefit from the ground floor retail, supplemental income and potential Qualified Opportunity Zone tax benefits. An owner looking to break into the LIC market or expand their holdings, could acquire this property for below replacement cost, when you take the price of land in the vicinity, into consideration. Additionally, an investor looking to combine or split apartments, could set new rents and unlock the cash-flow potential of the building.
1.00 25’ X 101.83’ Maximum FAR Lot Size
M1-1 ±5,413 SQ. FT. Zoning Gross Sq. Ft.
3 / 32-31 Greenpoint Avenue, Long Island City, NY 11101 / HKS Real Estate Advisors www.hks.com 35th Street Starr Avenue Bradley Avenue 0304 / 15
Greenpoint Avenue
4 / 32-31 Greenpoint Avenue, Long Island City, NY 11101 / HKS Real Estate Advisors www.hks.com PROPERTY OVERVIEW
Address 32-31 Greenpoint Avenue, Long Island City, NY 11101 32-31 (REAR) Greenpoint Avenue
Location Greenpoint Avenue b/t Bradley Avenue and Starr Avenue
Borough Queens Block / Lot 0304 / 15
Lot Size 25' x 101.83' Building Size 25’ x 40’ / 25’ x 28’
Gross Sq. Ft. ± 5,413 Sq. Ft. Building Class S4
Zoning M1-1 Maximum FAR 1.00
FAR As Built 2.13 Unused FAR -
Year Built 1931 RE Taxes (20/21) $11,888
5 / 32-31 Greenpoint Avenue, Long Island City, NY 11101 / HKS Real Estate Advisors www.hks.com FINANCIAL SUMMARY
Income
Residential Rental Income $99,441
Commercial (Projected) $30,000
Total Rental Income $129,441
Operating Expenses
Real Estate Taxes (2020/2021) $11,888
Water & Sewer $3,600
Heat $3,900
Utilities $600
Insurance $1,800
Repairs/Maintenance/Supplies/Paint $3,000
Management 3% $3,883
Payroll $2,400
Total Operating Expenses $31,072
Net Operating Income $98,369
6 / 32-31 Greenpoint Avenue, Long Island City, NY 11101 / HKS Real Estate Advisors www.hks.com RENT ROLL
Building Unit Layout Monthly Rent Yearly Rent
Rear Bldg 1RR 2 Bedroom $2,142 $25,704
Rear Bldg 2RR 1 Bedroom $1,133 $13,599
Front Bldg 2F 1 Bedroom $1,637 $19,644
Front Bldg 2R 1 Bedroom $859 $10,302
Front Bldg 3F 1 Bedroom $916 $10,992
Front Bldg 3R 1 Bedroom $1,600 $19,200
Front Bldg Ground Floor Store (Vacant) $2,500 Projected $30,000
Total $10,787 $129,441
7 / 32-31 Greenpoint Avenue, Long Island City, NY 11101 / HKS Real Estate Advisors www.hks.com SALES COMPARABLES AND APARTMENT RENTAL COMPS
Address Sale date Sale price Gross Sq. Ft. Total units PPSF PPU
152 Norman Ave 07/31/2020 $3,100,000 5,500 7 $564 $442,857
243 Kingsland Ave 02/12/2020 $1,620,000 4,875 6 $332 $270,000
4728 45th St 04/17/2020 $1,425,000 3,975 6 $358 $237,500
105 Newel St 05/07/2020 $1,300,000 4,500 6 $289 $216,667
204 Nassau Ave 01/21/2020 $2,300,000 3,900 5 $590 $460,000
512 51st Ave 12/23/2019 $4,875,000 6,961 5 $700 $975,000
3424 44th St 11/25/2019 $2,100,000 3,930 6 $534 $350,000
3428 44th St 11/25/2019 $2,100,000 3,930 6 $534 $350,000
3411 43rd St 11/4/2019 $1,412,500 3,930 6 $359 $235,417
1022 47th Rd 9/18/2019 $2,655,000 4,923 6 $539 $442,500
3451 41st St 9/12/2019 $1,660,000 5,200 6 $319 $276,667
Average 4,693 5.91 $476 $377,654
Apartment Rental Comps Average Asking Price Average Rented Last 90 Days
1 Bedroom $1,955 $1,885
2 Bedroom $2,365 $2,365
3 Bedroom $2,715 $2,715
8 / 32-31 Greenpoint Avenue, Long Island City, NY 11101 / HKS Real Estate Advisors www.hks.com RETAIL MAP
32-31 Greenpoint Avenue
9 / 32-31 Greenpoint Avenue, Long Island City, NY 11101 / HKS Real Estate Advisors www.hks.com LOCATION OVERVIEW: GREENPOINT AVENUE
LOCATED WITHIN OPPORTUNITY ZONE
MAJOR BUSINESSES IN THE AREA FOOD AND ATTRACTIONS IN THE AREA • Silvercup Studios East • Doughnut Plant • Bobby Spot Nuvo Café • Nestle Waters • Cypriana • Juice Press • FedEx Distribution Center • Bantry Bay Public House • Manhattan Fruitier • The Factory • Brooklyn Dumpling • American Folk Art Museam • Otter House Studios • City Ice Pavillion • CityView Raquet Club • Cinema World Studios • Cambodia Now • Broadway Stages • York Studios • United Refrigeration • AMAF Supply • ABCO HVACR Supply • There are fourteen (14) Self-Storage Facilities in the area
10 / 32-31 Greenpoint Avenue, Long Island City, NY 11101 / HKS Real Estate Advisors www.hks.com LOCATION OVERVIEW: LONG ISLAND CITY
View Of Manhattan From Long Island City Located directly across the East River from Manhattan, Long Island City is a mere 5 to 10 minute subway ride to Grand Central Terminal and the heart of Midtown. Long known as an industrial area, residential and commercial growth has transformed Long Island City into one of the most desirable and dynamic neighborhoods in New York City.
Residential Development Over the past 10 years, growth in the neighborhood has exploded. Per the Long Island City Partnership, approximately 8,274 residential units have been completed since 2006. Even more astounding is the fact that there are an additional 18,088 additional residential units in planning and construction phases.
TF Cornerstone is often credited with spurring residential development in the neighborhood. In 2003, they purchased a tract of land from PepsiCo along the • LINC LIC - 2013 completion of Rockrose Development’s 709 unit apartment waterfront in the western portion of the neighborhood for the construction of a building at 43-10 Crescent Street (now fully leased) residential building at 47-20 Center Boulevard. $1.4 billion and a decade-later, TF • 42-12 28th Street - Heatherwood’s future 477 unit, 58-story residential Cornerstone reached 100% occupancy in their final building of the 2,615 rental tower recently began foundation work and 184 condos that they ultimately developed along this stretch of waterfront. • Tishman Speyer/H&R REIT - $875 Million projected cost for future 1.2 million square foot, 1,600 rental unit project along Jackson Avenue, Waterfront development has now shifted south in Long Island City to an area between West and Orchard Streets known as Hunter’s Point South. This 30 acre site will be improved with up to 5,000 • 43-25 Hunter Street - Rockrose Development recently broke ground on a housing units, five acres of parkland, a new school, new retail space and parking. future 767,000 square foot, 50-story residential building Phase I (925 units) is anticipated to be completed in early 2015 by a joint venture • Eagle Electric Lofts - Rockrose Development’s conversion of an existing between Related Companies and Phipps Houses. Phase II will be developed by warehouse and new tower construction at 43-22 Queen Street to 783 rental
OVO OSTAVI TF Cornerstone and Selfhelp Community Services which will bring an additional units 1,193 units to the site. • 5Pointz - Development at the former artistic landmark will result in 1,116 apartments, commercial space and parking garage between two towers Residential construction is thriving inland in Long Island City as well. The totaling 1.2 million square feet along Jackson Avenue between Crane and following are notable recently completed, under construction and planned/ Davis Streets proposed projects. Please note that this list is not all encompassing. There are a • The Pearson Court Square Apartments - 45-56 Pearson Street - A 197 unit substantial number of other projects which can be found on pages 04, 06 and 07 luxury apartment building of the offering memorandum. • 22-25 Jackson Avenue - Under construction 182 unit luxury apartment building
11 / 32-31 Greenpoint Avenue, Long Island City, NY 11101 / HKS Real Estate Advisors www.hks.com LOCATION OVERVIEW: LONG ISLAND CITY
Commercial Development Cornell Tech Roosevelt Island Campus In addition to the roughly 21,000 residential units delivered since 2003 and the 13,700 In late 2011, a historic partnership was announced to build a $2 billion, two- planned or under construction, commercial and hotel development is also exploding: million-square-foot applied science and engineering campus on the southern portion of Roosevelt Island-equidistant between Manhattan and Long Island City. • Commercial Office Development: Over 2 Million SF of Class A space The campus is to opened in 2017 and will double the City’s number of full-time, created since 2003 graduate and engineering students. Given the short distance from Long Island • Hotel Development: 15 hotels opened since 2008 with an additional eight City, the campus is anticipated to be a significant economic driver of business hotels in planning and construction phases. and research to the neighborhood, as well as increase demand for housing. • A total of 10 million square feet of commercial development since 2003 Transportation Long Island City Business Long Island City is centrally located in New York City. In addition to the No. 7 Per the Long Island City Partnership, Long Island City is home to Fortune 500 subway line that provides access to Manhattan and Grand Central Terminal in companies, over 7,000 businesses and 90,000 employees. Major businesses and 5-10 minutes, there are seven other subway lines providing access to/from the institutional tenants include: neighborhood and other boroughs. The following 2013 average weekday subway ridership figures were provided by the Long Island City Partnership: • Citibank: 5,000 employees • NYC Dept. of Health (moved to LIC in 2011): 4,000 employees • Queens Plaza Station (E, M, R) – 9,696 riders • MetLife, Barclaycard, WorldNow: 4,000 employees • Queensboro Plaza Station (7, N, Q) – 11,132 riders • JetBlue Headquarters (moved to LIC in 2012): 1,200 employees • Court Square Station (E, G, M, 7) – 20,446 riders • CUNY Law (moved to LIC in 2012): 600+ staff/students • 21st Street Queensbridge (F) – 8,749 riders • Publicis/Re:Sources (moved to LIC in 2013): 450 employees • Silvercup Studios In addition to the eight subway lines, the Long Island Rail Road also had multiple • Kaufman Astoria Studios stops in the neighborhood. The East River Ferry also provides access to/from Manhattan and Brooklyn. OVO OSTAVI Art Community Long Island City has the largest cluster of museums outside of Manhattan. In With respect to vehicular traffic, the Ed Koch Queensboro Bridge and the Queens fact, it is home to eight world-renowned institutions such as MoMA PS1, the Midtown Tunnel are located on either end of the neighborhood. Museum of Moving Image, Socrates Sculpture Park, the Noguchi Museum and the Sculpture Center.
Restaurants Long Island City is home to a burgeoning restaurant scene to serve the rapidly growing residential base. The 2015 Michelin Guide recognized two exceptional Long Island City restaurants: M. Wells Steakhouse and Casa Enrique. Other notable restaurants include Manducatis Rustica, Alobar, John Brown Smokehouse and Blend on the Water.
12 / 32-31 Greenpoint Avenue, Long Island City, NY 11101 / HKS Real Estate Advisors www.hks.com LOCATION OVERVIEW: SUNNYSIDE YARDS
The Sunnyside Yard Master Plan proposes bold action on the most pressing issues of our time. Across the country, Amtrak is partnering with local governments to envision how its assets in growing cities can serve multiple public needs while also furthering its core mission of intercity rail transportation.
In 2014, Amtrak approached the City of New York seeking to plan collaboratively for one of its key assets on the Northeast Corridor, Sunnyside Yard. Sunnyside Yard is critically important to Western Queens and the Greater New York City region. Its central location, sheer scale, public ownership, and the strong, diverse neighborhoods surrounding the Yard make it an unparalleled place to plan responsibly for the next generation.
The Sunnyside Yard Master Plan is the product of a proactive, community- driven planning process that sought to take the qualities that make these neighborhoods great – their affordability, walkability, and diversity – and add to them with efficient public transit, beautiful parks, affordable homes, and access to education and high-quality jobs. The city’s challenges are compounded by the reality of climate change and economic inequality. Fortunately, the neighborhoods surrounding Sunnyside Yard are full of engaged residents who want to be part of a larger conversation around planning for a more sustainable, affordable, and fair city.
The Master Plan: • 12,000 new affordable homes – half affordable rentals and half providing home ownership opportunities • A new regional rail hub, “Sunnyside Station”, connecting Western Queens to the Greater New York City region and Northeast Corridor • 60 acres of new public open space, alongside new schools, libraries, and other social infrastructure • An infrastructure-first approach that includes meeting urban needs like resiliency, drainage, open space, and transportation
13 / 32-31 Greenpoint Avenue, Long Island City, NY 11101 / HKS Real Estate Advisors www.hks.com TRANSPORTATION
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