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.