Summary

2101-2139 31st Street in Astoria, NY. The entire portfolio consists of five buildings, six tax lots, with 13 stores, totaling 36,935 sq ft of retail space, on a 400.02 ft x 100.02 ft lot, with 400 ft of frontage on 31st Street. This site offers approximately 122,935 buildable sq ft for a ground-up mixed-use development, with half of the space nearly topped off and being transformed into the luxury condominium known as "The Rowan." The portfolio, previously owned by different owners, was divided into 4 transactions, 6 tax lots, and air rights, totaling $28,587,424 or $232 per ZFA. The property at 21-25 31st Street sold for $6,350,000. 2101-2119 31st Street sold for $16,050,000, 21- 37 31st Street sold for $5,000,000, and the Grace Lutheran Church Air Rights, Easements & Lot was sold for $1,187,424. 

SALE #1:

21-25 31st Street in Astoria, New York. The single-story building traded for $6,350,000 in an all-cash transaction. The subject property is a 11,875 sq ft one-story retail building with 125 ft of frontage on prime 31st Street between Ditmars Boulevard and 21st Avenue in the Ditmars/Steinway section of Astoria, Queens. 21-25 31st Street is situated in a C1-3/ R6A zoning area, which gives the site over 35,000 buildable sq ft for a future mixed-use development. 

SALE #2:

2101-2119 31st Street, are three, contiguous, corner single-story retail buildings which traded for $16,050,000 in an all-cash transaction on January 13, 2016. The subject properties were improved by nine retail stores. Combined, the portfolio has 20,310 above grade sq ft with 225 ft of frontage on 31st Street on the corner of 21st Avenue in the Ditmars/Steinway section of Astoria, Queens. 2101-2119 31st Street is situated in a C1-3/R6A zoning area,  which gives the site approximately 42,855 sq ft of air rights or over 63,165 buildable sq ft for a possible future mixed-use development. The sales price of $16,050,000 equates to $790.25 per sq ft, approximately $254.10 per buildable sq ft, and a capitalization rate of around 2.65%. The sellers owned the building for over 23 years.

SALE #3:

2137-2139 31st Street was a single-story retail building that traded for $5,000,000 in an all-cash transaction on September 8, 2016. The subject property was improved by three retail stores. The property had 4,750 Above Grade sq ft with 50 feet of frontage on 31st Street between 21st Avenue and Ditmars Boulevard in the Ditmars/Steinway section of Astoria, Queens. 2137-2139 31st Street is located in a C1-3/R6A zoning district, providing the site with approximately 9,500 sq ft of air rights, or 14,250 buildable sq ft, for a potential future mixed-use development. The sales price of $5,000,000 translates to $1,052.63 per sq ft, or $350.88 per buildable sq ft. The seller, who constructed the building in the 1960s, owned it for nearly 60 years. SALE #4: The sales price of $1,187,424 for 9,595 sq ft of air rights, a light & air easement and a rear portion of the Grace Lutheran Church of Astoria lot. The Church was able to use these funds for its school expansion.

SALE #4:

The sales price of $1,187,424 for 9,595 SF of Air Rights, a light & air easement and a rear portion of the Grace Lutheran Church of Astoria lot. The Church was able to use these funds for its school expansion.

Situation

The sellers, all family-owned, had collectively owned the properties for over 123 years, and neither family was historically transactional. All the sites were income-producing assets. When the owners of 21-25 31st Street, the “middle piece,” reached out to Development Site Advisors® from California, we saw an opportunity to expand the sale. Using a strategic approach, we identified a local buyer who was well-versed in the area, and we successfully finalized an all-cash transaction, with escrow released to ownership during the contract phase. Once the transaction closed, we approached the owners of 2101-2119 31st Street to see if they would entertain an offer. We represented the developers in an all-cash purchase of the “corner piece.” Next, we turned to 2137-2139 31st Street, owned by the gentleman who had originally constructed the building 60 years earlier. The developers paid a premium, over $350 per buildable sq ft, to acquire this site. Finally, we approached the Grace Lutheran Church, located at the rear of the corner site. They had recently merged their church and school operations and needed to expand. This sale would help them monetize their site and achieve their expansion goals. The developers purchased the air rights, light and air easements, and a portion of the rear lot, completing the assemblage.

Outcome

The developers were able to vacate half of the site, approximately 200 ft of frontage, for the first phase of development. Once that phase is completed and sold, they will proceed with the construction of the second phase of this exceptional development site.