Recently, GDC Properties purchased two adjacent, one-story, industrial warehouses in the Court Square sub-district of Long Island City, for a total of $44 million. Headquartered in Westchester, GDC, purchased the larger of the two lots, at 11-15 46 Ave for $37 million from the Eunhasu Corporation headed by a Kyu Park, Edwin Park and Elliot Park. The 38,000 square foot lot is R6A zoned and allows for 114,000 buildable square feet, which is shy of $325 per buildable square foot. On the same day GDC also closed on the adjacent lot at 45-35 11 Street
for $7 million dollars also from Kyu Park. However, Kyu Park, purchased this property from prior owner, Mr. Paul Horowitz, just forty-five day before selling it to GDC. 45-35 11 Street has the same zoning and FAR as its neighbor and allows for 36,000 buildable square feet. This means that Mr. Park purchased his neighbor for $194 per buildable square foot and sold the combined lots to GDC for a total 150,000 buildable square feet at $293 per buildable square foot.
GDC’s $22 million mortgage was provided by Santander Bank. GDC later announced that they plan to build townhouses on the land. Townhouses will work here, since across 11th street there are a row of two and three family brick homes, regardless of the multi-story developments coming up in the area. The lot is right across the Murray playground, a couple blocks to the waterfront just past Vernon Boulevard and directly neighboring developer George Xu’s recent 24-unit project at 11-30 45th Road.
GDC’s price record purchase in the area has spurred other owners to jump on the bandwagon and take advantage of the rapidly rising LIC market. Just two weeks ago, industrial property owner James Juliano, tapped Pinnacle Realty to market his properties in Hunters Point South. The owner is asking above $50 million for what he expects to be development site for residential even though there is no residential zoning. The two one-story warehouses are one block apart from each other. 502-504 54th Avenue allows for over 100,000 buildable square feet of M1-4 zoned land and 52-37 2nd Street
allows for over 52,000 buildable square feet also M1-4 zoned land. Juliano and Pinnacle realty are betting on one of the major active developers in the area such as TF Cornerstone, Related Companies and other to be able to get a variance and up-zoning. At over $320 a buildable square foot for the current zoning, if a developer could get such a variance it would seem like a decent deal, but a far reach for now.
To add to the recent listings looking to break records, one of Long Island City’s bigger owners, Plaxall, has hired Eastern Consolidated to market a site currently used by a taxi operation for over $53 million. The site at 22-12 Jackson Avenue
has over 169,500 buildable square feet at about $315 per foot. At these prices, it looks like the current future of Long Island City is in the condominium market as local tenants are now buying and planting roots in the area.