Dan Brady The Corcoran Group 153-33 89th Avenue Jamaica …€¦ · --Curbed Jan 11, 2018 Dan Brady The Corcoran Group 917 -202 5609 23 Rendering. 153-33 89th Avenue, Jamaica,

Plans for 36,915 sq ft Residential Building with Community Space

Total Air Rights of 66,196 sq ft

153-33 89th Avenue Jamaica Queens

Development Site with Additional Air Rights

Asking $5,600,000

Dan BradyThe Corcoran Group

917-202-5609

Copyright 2019 Corcoran.

5750 sq ft Vacant Lot 50’ X 115’ R7A, DJ Zoning

153-33 89th Avenue, Jamaica, NY 11432

Dan Brady

The Corcoran Group917-202-5609

2

4 Market Overview

5 Inquiries

1 Property Overview

2 Proposed Development

3 Neighborhood Overview

153-33 89th Avenue, Jamaica, NY 11432 Development Plans for 36,915 sq ft

Residential/Community Space

66,196 sq ft Total Air Rights Available

5750 sq ft Vacant Lot

R7 DJ Zoning

3

Dan Brady

The Corcoran Group

917-202-5609


Property Overview

153-33 89th Avenue, Jamaica, NY 11432153-33 89th Avenue is a

vacant lot, currently used

for parking, now available

for development in

Jamaica, Queens. With 50

feet of frontage along 89th

Avenue and 115 feet deep

into the block, the

property offers ample

room for development.

Opportunities to purchase

single lots with this much

frontage and depth of the

lot are extremely rare.

Dan Brady


5

153-33 89th Avenue, Jamaica, NY 11432Presently, R7A zoning allows for 23,000 sq ft to be built on a lot of this

size, but 153-33 89th Street also has legal claim to all the development

rights from an adjoining property (43,196 sq ft).

Therefore, the current owner has plans for a 36,915 sq ft residential

development that includes a 2433 sq ft community space that can be

provided to the new owner.

Dan Brady


6


Confirmation of this arrangement can be found in the title search

of the zoning lot development agreement between the then owner of 88-22

Parsons Blvd and the current owner of 153-33 89th Avenue, dated

December 18, 2003.

Dan Brady


7


The zoning lot merger granted 153-33 89th Avenue rights

to the 94,104 sq ft available on both 153-33 89th Street

and 88-22 Parson Boulevard.

Dan Brady


8


The 27,908 sq ft existing building on the Parson’s lot could

remain, but nothing further could be built. This agreement further

guaranteed that the owner of 88-22 Parson’s Boulevard would

never oppose development at 153-33 89th Avenue.

Dan Brady


9


Any future building erected at 88-22 Parsons Avenue must also

comply with the restrictions agreed upon in the zoning lot merger.

Dan Brady


10


Moreover, the zoning lot merger guarantees the mandatory

cooperation of future owners of the property at 88-22 Parsons

Avenue.

Dan Brady


11

Proposed Development153-33 89th Avenue, Jamaica, NY 11432

Rendering


Development Plans

The current owner of 153-33 89th Avenue purchased the

development rights from 88-22 Parsons Boulevard so

that he might build a 36,915 sq ft residential development

that includes a 2433 sq ft community space.

Dan Brady


13

Rendering


Sub-Cellar Plans

call for 5752 sq ft of parking, including a car lift

and 11 parking spaces.

Dan Brady


14

Rendering


Cellar Plans

call for 5752 sq ft of space for building mechanicals,

building laundry, the car lift, and an additional 11

parking spaces.

Dan Brady


15

Rendering


1st Floor Plans

include access to the car lift, the lobby, and 2433 sq ft

of proposed medical office space. In addition, there are

plans for a 960 sq ft courtyard to satisfy light and air

requirements with the adjoining property. As 153-33

89th Avenue owns the development rights to that property,

a new owner could develop as deep as the rear lot line, as

long as light and air requirements are met with respect to

the existing building next door.

Dan Brady


16

Rendering


2nd Floor Plans

include 4356 sq ft of residences, 6 units total. Three are

studio apartments and three are one-bedroom apartments.

Dan Brady


17

Rendering


3rd through 7th Floor Plans

include 4356 sq ft of residences, 6 units total. Three are

studio apartments and three are one-bedroom apartments.

Dan Brady


18

Rendering


8th Floor Plans

include 3600 sq ft of residences, 5 units total. One is a

studio apartment and four are one-bedroom apartments.

Dan Brady


19

Rendering


9th Floor Plans

include 3600 sq ft of residences, 5 units total. One is a

studio apartment and four are one-bedroom apartments.

Dan Brady


20

Rendering


Roof Floor Plans

include 1016 sq ft of rooftop recreation.

Dan Brady


21

Rendering

Neighborhood OverviewJamaica, NY

153-33 89th Avenue, Jamaica, NY 11432After years of speculation, false starts, and stalled projects, it

might finally be safe to say that Jamaica, Queens is having its

moment. In 2016, Governor Andrew Cuomo awarded $10

million to the neighborhood that could be used toward

initiatives that would kick-start economic development and

long-awaited projects like The Crossing at Jamaica Station and

several other high-rise towers are now making swift progress.

High-rise residential buildings aren’t the only thing that’s taking shape throughout Jamaica. A few new hotels are in the

pipeline, along with a few smaller mixed-use developments,

many helmed by lesser-known developers and architects.

--Curbed Jan 11, 2018

Dan Brady


23

Rendering

153-33 89th Avenue, Jamaica, NY 11432Armed with some of the best transportation in the city, Jamaica’s proximity to

Manhattan, Long Island and JFK Airport makes the neighborhood a viable

option for residents, commuters and tourists. As land prices in other parts of

Queens, namely Long Island City, and New York City have become steep,

developers have turned to Jamaica’s strong infrastructure and its large unmet

retail needs for future projects. A flurry of developments in the area coupled

with public investment has Jamaica well on its way to becoming a major regional

and economic center in New York City.

The Greater Jamaica Development Corporation is currently working on over $90

million worth of infrastructure improvements that aim to transform the

neighborhood into a destination rather than a stop between destinations.

--Ariel Property Advisors

Dan Brady


24

153-33 89th Avenue, Jamaica, NY 11432Major investment in the area of Jamaica began in 2003, when the City put $1.9 billion into

the construction of the AirTrain to JFK Airport, and rezoning 368 blocks of the

downtown core in 2007.

According to data from the Greater Jamaica Development Corporation, with all the

commercial and residential projects underway, the area is expecting 3,000 housing units,

500,000 s/f of retail space, and 800 hotel rooms over the next five years.

The once neglected neighborhood is also drawing new national retailers and chain

restaurants, such as Burlington Coat Factory, Swedish clothing giant H&M, Chipotle and

Starbucks.

According to real-estate listing service StreetEasy, Jamaica's real-estate prices are rising the

fastest out of all localities in New York City. The community's median home prices rose

39% in 2015

Dan Brady


25

Market OverviewJamaica, NY


Dan Brady


27

Active sales pricing in Jamaica is surprisingly strong, given its initial appeal as a source of inexpensive land. Because of the generous

buildable square footage allowed by Jamaica zoning, finding price-per-square-foot averages above $1000 is not difficult.

Finding similar pricing for commercial condos and mixed-use buildings, however, is quite impressive.


Dan Brady


28

Recent Sales not only re-affirm that pricing, but point out other important trends: lessoning new land sales and a lack of new

residential property inventory.


Dan Brady


29

Jamaica is the home of new development. The following is an incomplete list of upcoming projects:

130-29 90th Avenue: 90-apartment, nine-story building nearly 70,000 square feet.

143-18 Liberty Avenue: 6-story, mixed-use building home to a 76-room hotel along with 12 apartments.

148-18 Hillside Avenue: 80-apartment nine-story mixed-use building.

The Crossing at Jamaica Station: 2 towers, one 14 stories and the second 26 stories, for a total of 669 apartments along with retail space and 187

parking spaces.

148-36 89th Ave: 27-apartment building.

147-36 94th Avenue: 26-story residential development of 379 studios, one-, and two-bedroom rentals.

150-11 89th Avenue: 4-building residential complex with 324 apartments.

153-10 89th Avenue: 7-story building with 17 apartments.

88-56 162nd Street: 7-story residential building with 51 apartments.

92-32 Union Hall Street: 6-story, 110-room hotel with retail.

89-50 164th Street: 12 story building with 177 affordable rentals, a 63-car garage, a 9,261-square-foot community center, and 14,616

square feet of commercial space.

90-02 168th Street: More than 300 apartments and 70,000 square feet of retail.

92-61 165th Street: 14-story, 89-unit building with 7,234 square feet of commercial and retail space.

165-20 Archer Avenue: 206-room Holiday Inn Express.

92-23 168th Street: Mixed-use project with 389 affordable apartments, 61,000 square feet of retail, and 19,000 square feet of community

space.

153-33 89th Avenue,

Jamaica, NY 11432

Dan Brady


30

Looking back over time, the Jamaica commercial sales market has undergone a remarkable amount of activity, some of it quite volatile.

The first quarter of 2018 saw almost $60 million is sales, while the fourth quarter of that year saw less than $10 million.

153-33 89th

Avenue, Jamaica,

NY 11432

Two nearby buildings give an excellent window into the prospects of residential

rental development at 153-33 89th Avenue. Parkhill City, 152-09 88th Avenue, is a

2017 8-floor apartment building with 57 units. The Parsons Windsor, 88-20 Parsons

Boulevard, is an older 2007 building with 33 units. The former has up-to-date condo-

like finishings while the latter is more modest.

Parkhill City averaged $31 ppsf for its latest rentals that can be verified by specific

square footage date, although StreetEasy states the building has averaged $34since

its opening in 2017.

The Parsons Windsor has averaged $25.

Dan Brady


31

Rental Comparables

153-33 89thAvenue, Jamaica, NY 11432

If 153-33 89th Avenue were to be purchased at the asking and developed to its fully-planned 36,915 sq ft, the costs would be as follows:

Land purchase: $5,600,000

Development hard and soft costs for rentals: $300 ppsf* for 36,915 sq ft = $11,074,500

Total: $16,674,500

For our purposes, it is agreed that there is a loss factor of 10% for hallways, stairs and elevator (-3,692 sq ft), so the rentable residential square footage is 33,223 sq ft.

Income:

From residential (34,482 sq ft planned), 30,790 sq ft @$34 ppsf (source StreetEasy)= $1,046,860 annually

The medical community space, 2433 sq ft @ $28 ppsf (source: CoStar) = $68,124 annually

Total annual income: $1,114,984

If 10% of the gross is used as an estimate of annual expenses, then the Net Income is: $1,003,485.60, and the Cap Rate for the rental development is 6.02%

*much of the soft costs are complete if present plans and zoning analysis are used

Dan Brady


32

Rental Development Analysis

153-33 89thAvenue,

Jamaica, NY 11432

Condominium development is where is 153-33

89th Avenue might get interesting.

The Parsons Windsor, 88-20 Parsons Boulevard, used in the

rental comp analysis, is the only nearby building developed

as condos. As an older building built in 2007, its design

and finishes are out-of-date with today’s market. The two latest sales in the building reflect that, averaging about

$500 ppsf. Given the lack of inventory as competition and

the greater appeal of a new design, a new condo

development at 153-33 89th Avenue might be a huge

success. If commercial condos have sold for $716 ppsf

(see page 27) recently, residential condominiums should

average $700 ppsf or more.

Dan Brady


33

Condo Comparables

153-33 89thAvenue, Jamaica, NY 11432

If 153-33 89th Avenue were to be purchased at the asking and developed to its fully-planned 36,915 sq ft, the costs would be as follows:

Land purchase: $5,600,000

Development hard and soft costs for rentals: $350 ppsf* for 36,915 sq ft = $12,920,250

Total: $18,520,250

For our purposes, it is agreed that there is a loss factor of 10% for hallways, stairs and elevator (-3,692 sq ft), so the sellable residential square footage is 33,223 sq ft.

Income:

From residential (34,482 sq ft planned), 30,790 sq ft @$700 ppsf = $21,553,000

The medical community space, 2433 sq ft @ $716 ppsf (source: CoStar) = $1,742,028

Total Sellout: $23,295,028

*much of the soft costs are complete if present plans and zoning analysis are used

Dan Brady


34

Condominium Development Analysis


Dan Brady


35

Obviously, given all the development begun over the last few years, new available space to build in Jamaica is at a premium. Large lots with room to easily build are few. The legal permission to over-build is almost non-existent.

153-33 89th Avenue has all of these valuable qualities in one location.

Asking is $5,600,000.

For all inquiries, please contact

Dan Brady Orion Talley

Licensed RE Salesperson Licensed RE Salesperson

Office: 718.422.2529 Office: 718.422.2590

Mobile: 917.202.5609 Mobile: 828.231.3566

[email protected] [email protected]

Thank youCopyright 2018 Corcoran

Documents

Dan Brady The Corcoran Group 153-33 89th Avenue Jamaica …€¦ · --Curbed Jan 11, 2018 Dan Brady The Corcoran Group 917 -202 5609 23 Rendering. 153-33 89th Avenue, Jamaica,