Nowak and Eshaghian of Marcus and Millichap and Soufeh of VCPRE broker sale of 25-11 49th Avenue LIC to Normandy Real Estate Partners and Keystone Equities for $39.1 million
Back in September of 2016 The Real Deal reported that Normandy Real Estate Partners and Keystone Equities were partnered in the contract for the 116,000 SF site with air rights at 25-11 49th Avenue in Long Island City.
Queensbeans has learned that today that it closed at $39.1 million, at $337 per square foot and over $200 per buildable square foot.
The sellers Howard and Scott Weinstein who own CandidLitho Printing, once the largest tenants in the building, have since moved to new facility in Farmingdale, NY. It is not clear what the current status of the other four tenants is or if they have all vacated. The Weinstein brothers purchased the property in 2007 for shy of $12 million, which turns out to be more than a threefold increase in value for them after 11 years.
Normandy and Keystone were able to secure an $81 million in financing from Deutsche Bank, $30 million of which went toward the acquisition.The new project will expand the current property with several new stories (rendering below). Normandy is already completing a nearby office conversion at 47-11 Austell Place and this will be their second in the immediate area. The area is already undergoing significant changes with Related and Greenoak converting the Paragon Oil and Blanchard buildings, dubbed “The Point” and Innovo Property Group looking to convert the NYCHA building across the street they purchased back in 2016.
Neither Jonathan Zamir from Keystone or Travis Feehan with Normandy were available at the time of this report and the sellers were unavailable as well. The brokers, Jonathan Eshaghian and Jakub Nowak of Marcus and Millichap and Joseph Soufeh of VCP, who represented both the sellers and the buyers, declined to comment on the specifics of the deal. Eshaghian and Nowak of Marcus and Millichap did say that “…while there seems to be an oversupply in the market for offices, LIC is still positioned for growth especially given the new Biotech initiative from the city for new hubs.”
Whether this site will be used for Life Sciences or not remains to be seen, Queensbeans will stay alert regarding the progress and keep readers posted.