Real Estate Giants Investing in Long Island City
Daniel Loeb, Hedge fund leader, has been going in on the emerging office market in Long Island City. He recently bought a stake in the 150,000 square-foot former warehouse in the Queens neighborhood. His Third Point investment fund has partnered with the real estate firm Brickman, who is also behind the building at 30-02 48th Avenue which it acquired for $21 million two years back.
At the moment, the group is interested in spending millions for the refurbishment of the three-story building with a new lobby, equipping it with elevators and a roof deck. Third Point’s current stake in the project and how much it expects to shell out in the renovations was not however disclosed.
Loeb’s funds acquisition was secured by Eastdil. Recently, major real estate brokers have been investing in the LIC market. Vornado Realty Trust has just recently acquired the Center Building for $142 million, while RXR Realty just paid $110 million for the Standard ‘Motor Products building. Vornado Realty and RXR Realty are just two of the many real estate giants investing in on LIC.
These real estate giants have been converting the Queens neighborhood to be one capable of generating sizeable returns. Now, the city has more office tenants than three years ago. City agencies and e-commerce firms taking up spaces in Long Island City, paying between $30 and $35 per square foot.
“They are getting comfortable that the tenant base is there and they can achieve the goals their shareholders are demanding from them,” says JLL’s Michael Shenot told the Wall Street Journal.
Vornado bought the Center Building, an office and retail property converted from industrial space, for $142 million, as reported, while RXR acquired the Standard