Newmark Holdings and Olmstead Properties Complete Purchase of 43-01 22nd Street in LIC for over $62 million from Roger Kaufman and Family
Last May, The Commercial Observer had reported on the 225,000-square-foot warehouse at 43-01 22nd Street in Long Island City being in contract for over $60 million. Queensbeans has just learned that the property has closed for $62,099,560. The building, which is located in the rapidly growing and changing Court Square district is positioned for office conversion. However, according to source close to the deal, converting the building will not go smoothly for the partnership as there is a pending litigation with tenant Reis Studios over a lease dispute carried over from the prior owners, Roger Kaufman and siblings Jonathan and Leslie. Reis occupies almost 80,000 square feet of the building and is not looking to give it up when paying an under-market rent at about $11 per square foot. Juvenal Reis could not be reach to comment as well as Roger Kaufman.
The property has access to the Queens Plaza Subway and is right across the Silvercup Studios. At the start of 2015, Rockrose had purchased the Wills Building across the street for $43.5 million. That building spans block-through from 22nd to 21st street and has seen many updates recently with local artist’s murals on the facade.
According to public records, the Kaufman siblings gave Olmstead and Newmark seller financing of $36.1 million. Olmstead and Newmark are equal partners and have 50,000 square feet in the building immediately available for conversion to office. While Olmstead has a great presence in Manhattan they are new to the LIC marke. Newmark is no stranger to LIC as this is their third purchase in two years in the area. Last September, they acquired 10-27 46th Avenue for $14.2 million, and 11-05 44th Drive, which it purchased in July of 2014 for for $17.1 million.