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 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.”
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