Recently Queens Beans reported on the sale of The Center Building and the surge in the LIC office market. While Manhattan used to be the focus of real estate players for office real estate, the shift has turned to Long Island City due to the high and rising costs of office real estate. Queens provides them with low cost alternatives.
Both Queens Beans and the WSJ spoke of this emerging LIC office market, while passing over a major recent trade in the LIC office arena. Last month Invesco took a minority share of the Factory building in Long Island City. The 49% share was acquired for approximately $175 million from Atlas Capital who will continue to maintain a majority hold on the building at 30-30 47th Avenue. Like its now very famous LIC neighbor, The Falchi Building, who has been the model for the new LIC office market, The Factory at LIC takes up an entire block from 47th to 48th Avenue and between 30th Place and 31st Street. The massive 970,000 square foot building, based on this trade has been valued at roughly $357 million, which relates to $368 per square foot. When Atlas bought the property last October is was valued at $102 million, in a trade that Atlas acquired from Mark Karasick in a deed-in-lieu process. Atlas paid $77 million for the first mortgage and $5 million to Karasick. Atlas has one other property in LIC at Queens Plaza South since 2012.
While the LIC office market continues to rise, Queens Beans will keep you informed.