Ron Sherman, owner of more than 40% of the yellow taxi cabs in New York City, is in contract to buy two properties in Long Island City. According to sources close to the seller, 36-32 21st Street is set to sell for approximately $4.1 million and 36-22 14th Street for $9 million. One of the two sites that were being marketed by Marcus & Millichap, as a retail development site, is located on 21st street between 36th & 37th Avenue,. That 21st street site is currently home to Shah Jee Motors on a lot size totaling more than 9,300 Square feet and a small garage shop under 1,200 square feet. The other property at 36-22 14th Street is where the sellers currently operate their business. The property is a 13,000 SF warehouse located on 14th street directly west and across the street of the 21st Street site.
Sherman, who has been relatively active in recent months with his portfolio, has added these two sites in just north of the Queensboro bridge and adds to his current properties on 21st Street south of the bridge. He recently made headlines with the sale of his Long Island City development site at 42-50 24th Street for $69 million to Keven Maloney’s PMG and The Hakim Organization according to TRD. Sherman is most likely exchanging into the properties via 1031, to mitigate his tax exposure and keep his business in Long Island City. The new sites, much like his prior one are strategically located near the Queensboro bridge for his fleet to access Manhattan, as well as the other boroughs.
Last December PMG and Hakim purchased the site from Sherman and the following month they arranged for a $65 million loan on the property. Queensbeans recently reported that PMG and Hakim are marketing their Queens Plaza project via HFF, but for the moment seem to be retaining the site purchased from Sherman.
In recent months there have been growing concerns that Long Island City has been losing its appeal as price per square foot has sky rocketed to record numbers and investors were concerned over the area’s weakening value-add opportunities. Sherman’s recent activity just cements the already active market in Long Island City and the need for local operators to keep their business in the neighborhood.
Ron Sherman was reached, but would not comment on the transaction. PMG, Hakim, and Marcus and Millichap could not be reached for comments at the time of this article. Queensbeans will follow the progress and update.