47-25 34th Street - Queen, NYQueens, NY According to Metropolitan Realty Associates LLC (MRA) founder and CEO Joseph Farkas, the firm has acquired HUB LIC with joint venture partner TIAA Global Asset Management for $89 million. This property is projected to be one of the city’s next significant office and retail redevelopments.
Joseph Farkas, Metropolitan Realty Associates LLCHUB LIC, located at 47-25 34th St., is a four-story, 326,000 s/f commercial building that is 48% leased.
“There is a substantial opportunity to transform this property,” said Todd Bassen, MRA’s chief investment officer and managing principal. “The building is uniquely positioned to attract a large-format retailer in the base—perhaps a grocer, big-box retailer, or multiple commissary and ‘maker’ users—in addition, we have the ability to create a unique 80,000 s/f contiguous block of office space on a single floor, featuring a 7,000 s/f skylight, a rarity in New York City.”
Among its desirable features are 16- to 21-foot ceilings, floor to ceiling window line, a 7,000 s/f pitched skylight in the center of the second floor and abundant skylights throughout the entire third floor, creating a unique space unrivaled in the growing market. The property also features abundant parking with easy vehicular access off 47th Ave. and has eight loading docks.
Todd Bassen, Metropolitan Realty Associates LLC“As office and retail rents in Manhattan and Brooklyn continue their dramatic rise, more tenants view Long Island City as a viable alternative,” Bassen said. “It not only has the live, work, and play aspect companies desire, but it’s only minutes away from Midtown Manhattan by multiple subway lines including the 7, E and M.
In addition to office and retail growth, over 23,000 residential units are in the pipeline, as well as nearly 4,900 new hotel rooms, according to the Long Island City Partnership.
“This building-wide renovation is a great collaboration given that both firms have a long history of redeveloping assets throughout the New York metropolitan region,” said Dimpesh Darjee, a director on TIAA Global Asset Management’s northeast acquisitions team. “We recently redeveloped, re-leased and have now fully stabilized over a million s/f of vacant midtown office space that was purchased in 2010 and 2011—during the early stages of the recovery—including 685 Third Avenue and 475 Fifth Ave.”
MRA’s most recent project, a ground up development known as Riverdale Crossing (a 160,000 s/f shopping center in the Bronx), was the former home to a Stella D’Oro factory. The site is now anchored by a BJ’s Wholesale Club and counts Chipotle, Smashburger, Bank of America, T-Mobile, Subway, Petco, Buffalo Wild Wings and CityMD among its tenants. Riverdale Crossing was sold to Vanbarton Group last October for $133 million.
“Our purchase reinforces the increasing demand for Long Island City, and we expect this trend to continue,” said Bassen. “The acquisition also plays into MRA’s stronger focus on New York City acquisitions and advancing the firm’s growth in the five boroughs.”
Eastdil’s Doug Harmon, Adam Spies, Adam Doneger and Josh King brokered the sale of the property, while Eastdil’s Grant Frankel and Rob Turner arranged acquisition financing for the transaction.
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