The Real Deal New York

Lloyd Goldman’s BLDG sells Long Island City building for $60M

Price of property rose 50 percent in one year

March 17, 2014 01:00PM
By Adam Pincus

Goldman-Fishman-LIC-Klein

From left: Lloyd Goldman, Jeff Fishman, 47-25 34th Street (Photo credit: PropertyShark) and Steve Klein

A partnership of two companies affiliated with Lloyd Goldman’s BLDG Management sold a massive three-story industrial property in Long Island City on Friday for $60 million — barely one year after buying it for $40.7 million.

The BLDG entities sold the 322,390-square-foot commercial building at 47-25 34th Street, between 47th and 48th avenues and 34th and 35th streets, to a fund managed by the Midtown-based real estate firm Brickman. Brickman owns properties in New York City and the U.S.

The pair of BLDG-affiliated entities purchased the property in February 2013 using a tenant in common structure. The full-block property is close to the No. 7 train stop at 33rd Street, and major tenants include clothing manufacturer Ralph Lauren and construction resources firm TEC Systems.

CoStar Group shows asking rents in the building from $13 up to $19 per square foot.

Real estate values in the area of western Queens have increased substantially over the past several years, as large investors have taken a renewed interest in the neighborhood.

One of the largest acquisitions in recent years was Jamestown Properties $81.2 million purchase of another full city-block building, 31-00 47th Avenue, about five blocks to the west.

BLDG hired the investment sales team at RKF to sell 47-25 34th Street.

“We achieved the targeted price in one year that was underwritten for five years. That price proved a strong motivation to sell,” Jeff Fishman, president of RKF’s investment sales and advisory services division, said.

The Midtown-based commercial firm Empire Leasing & Development, headed by President Thomas Tassone, represented Brickman. He represented them in the purchase of another building in the area, he said.

“The neighborhood seems to be on an upward trajectory in terms of leasing and sales,” he said.

Steve Klein, chief investment officer for Brickman, said the company plans to maintain the property as a commercial venture, even though many sites around Queens Plaza to the west are being redeveloped as residential high rise structures.

“We believe that we offer tenants relatively inexpensive rental options compared to Manhattan, in comparable properties,” he said.

BLDG did not immediately respond to a request for comment.

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