PMG looks to sell empty LIC rental tower

Kevin Maloney's firm developed 23-01 42nd Road with Vector Group

Rendering of 23-01 42nd Road in Long Island City and Kevin Maloney
Rendering of 23-01 42nd Road in Long Island City and Kevin Maloney

Kevin Maloney’s Property Markets Group is looking to sell a newly built and still empty rental tower in Long Island City, in a bid to tap into growing institutional investor demand for New York City multifamily properties.

PMG [TRDataCustom] built the 45-story, 391-unit tower at 23-01 42nd Road in partnership with Howard Lorber’s Vector Group and toyed with the possibility of turning the units into condominiums, filing a $364.2 million condo plan with the Attorney General’s office.

Leasing at the tower is set to begin next week, with average asking rents of $62 per square foot.

“The business plan always, from day one, was to build a rental and sell it,” Maloney told Bloomberg. “We have a price point we want to achieve and if we don’t achieve it, we’ll finance the building and just enjoy the cash flow.”

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Eastdil Secured’s Adam Spies and Doug Harmon are marketing the property. Since the building’s condo plan was approved, a potential buyer could opt to sell the units instead of renting them out.

Elsewhere in Long Island City, PMG and partner Hakim Organization are looking to sell a nearby development site at 29-37 41st Avenue, which they paid at least $133 million to assemble. [Bloomberg]Konrad Putzier