Wanted: Gentrifiers for huge Long Island City warehouse

Investors look to up value of their nearby properties by wooing developer to convert 300K sf site

TRD New York /
Oct.October 20, 2014 03:55 PM

Investors in a far-flung corner of industrial Long Island City are looking for a way to transform a 300,000-square-foot development site into a property that will raise its neighbors’ values.

Nigel Shamash, principal broker at the firm 5cre, is courting developers to see who can come up with the best use for a property in a gritty section of the neighborhood between Newtown Creek and the Long Island Expressway.

Shamash said he represents a group of owners who purchased the two-story warehouse at 30-02 Borden Avenue last week, and is issuing a request for proposals to develop the site into something that will help jump start the area’s gentrification.

“It’s in our best interest for something good to happen over there,” he said, explaining the consortium owns other properties in the neighborhood.

The property was sold by Edward Soffer, owner of a wholesaling business in the warehouse. A source close to the said it sold for the $30 million to $35 million range.

Shamash said he can offer all or part of the site, from 120,000 to 330,000 buildable square feet, and will entertain proposals such as land divisions and joint ventures.

The owners’ preference is for a hotel, but the broker said they’d also consider creative uses such as an office building or shared work spaces – anything that will breed new life into the area. Neighbors include Silvercup Studios’ east lot as well as the Fairfield Inn and Best Western hotels.

The property is only about a 10 minute walk from Jamestown Property’s Falchi Building and the more up-and-coming sections of Long Island City. But it may as well be a world away situated on the other side of the expressway, and finding someone to bet on the area may be a tough sell.

“I would be skeptical. Borden Avenue, when you head out there, you see it’s heavily industrial,” said Natalie Hurwitz of the LIC-based brokerage Sholom & Zuckerbrot Realty.

“The area is just not right for a hotel,” she added. “Of course, hotels have gone up in all kinds of areas.


Related Articles

arrow_forward_ios
Carlyle CEO Kewsong Lee and 24-02 Queens Plaza South in Long Island City (Getty; Atlas Capital)

Carlyle Group pockets $40M LIC trade school building

Carlyle Group pockets $40M LIC trade school building
Traub Capital's Brian Crosby and 27-11 49th Avenue in Long Island City (Images via Traub and Google Maps)

Traub Capital pays $75M for LIC cosmetics plant

Traub Capital pays $75M for LIC cosmetics plant
Kyle Bragg and Eric Benaim

Backers of big Queens megaprojects say city needs the jobs, homes

Backers of big Queens megaprojects say city needs the jobs, homes
Mayor Bill de Blasio and (inset) the proposed development in Long Island City (Getty, YourLIC)

City ends talks with Gilmartin’s group to jointly rezone former Amazon site

City ends talks with Gilmartin’s group to jointly rezone former Amazon site
Penthouse at 46-30 Center Boulevard (Compass, Google Maps)

LIC penthouse deal is priciest Queens sale in two years

LIC penthouse deal is priciest Queens sale in two years
Nearly 60% of condo units built in Long Island City, Queens, since 2018 remain unsold. (iStock)

“You’ve either made the wrong shoes, or you’ve made too many”: LIC faces a serious condo glut

“You’ve either made the wrong shoes, or you’ve made too many”: LIC faces a serious condo glut
Square Mile Capital’s Craig Solomon and Hackman Capital Partner's Michael Hackman with Silvercup Studios at 42-22 22nd Street in Long Island City (Hackman; AAK via Wikipedia Commons)

Hackman, Square Mile in talks to buy Silvercup Studios

Hackman, Square Mile in talks to buy Silvercup Studios
48-49 35th Street in Long Island City and North River Company's Forrest Mas (Google Maps, North River Company)

Maquette doubles space at Matsil Building in Long Island City

Maquette doubles space at Matsil Building in Long Island City
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...