The Real Deal New York

Mehran Enterprises asking $238M for Flushing retail portfolio

The buildings are largely scattered along Main Street
By Eddie Small | June 19, 2017 04:53PM

Three of the six buildings in the Main Street portfolio (Credit: Cushman and Wakefield)

Alexander Mehran’s Mehran Enterprises hopes to get $238 million for its package of retail-and-office buildings in Queens’ Flushing neighborhood.

The portfolio consists of six buildings at 36-41 to 36-47, 36-51, 36-48, 37-02 and 37-13 Main Street and 135-28 37th Avenue.

The properties collectively span about 171,900 square feet. There is a total of 317,121 gross buildable square feet and 147,029 square feet of air rights. All of the buildings except 135-28 37th Avenue are fully leased.

“I’ve been working in Queens for nearly 15 years,” said Cushman & Wakefield’s TRData LogoTINY Stephen Preuss, who is marketing the buildings. “This is the largest retail-driven portfolio that I’ve seen on the market.”

Retail rents on the block exceed $200 per square foot, and while most office space still rents for about $60 per square foot, it has approached $80 at some of the neighborhood’s newer buildings, according to Preuss, who described these rates as extraordinarily high for the borough.

“Those two figures are two times the runner up as far as where the other retail strongpoints are in Queens,” he said.

Huntington-based Mehran Enterprises has owned the portfolio for roughly 50 years, and the average rent in the “Main Street portfolio” is roughly 60 percent below market value, according to Cushman. Retail tenants include Mattress Firm, the Hong Kong Plaza mall and the Windsor School.

Representatives from Mehran could not be reached for comment.

Flushing has seen an influx of development in recent years. F&T Group, AECOM Capital and Rockefeller Development are at work on the $1 billion Flushing Commons project, which is expected to bring more than 600 condos to the area, and the neighborhood recently saw a record-setting $13 million sale for a 29,000-square-foot site at 159-18 Northern Boulevard.

(To view more commercial sales transactions in Flushing, click here)