The Real Deal New York

Silverstein inks ground lease for massive Astoria dairy plant site

Developer could build a commercial project of more than 1.5M sf
By Will Parker | June 13, 2018 05:32PM

Clockwise from top left: 35-19 Steinway Street, 35-13 41st Street, 35-02 42nd Street, 35-22 42nd Street, and Silverstein Properties CEO Larry Silverstein (Credit: Google Maps)

Silverstein Properties acquired the ground lease on a seven-parcel Astoria development site in what marks its first major outer-borough expansion, property records filed with the city Wednesday show.

The site stretches two blocks between Steinway Street and 42nd Street in the most southeastern part of the Queens neighborhood.

The properties, which stretch across 390,906 square feet on the ground and house the dairy plant owned by Queensboro Farm Products, but carry more than 1.5 million square feet in commercial development rights, according to real estate data service Reonomy.

Silverstein did not immediately respond to a request seeking comment. Neither did a representative from the New York City office of Canastota-based Queensboro Farm Products.

It’s unclear what kind of project Silverstein might be planning for the site. The landlord, one of New York’s largest, has developed millions of square feet of both residential and commercial property in Manhattan, including 3, 4 and 7 World Trade Center, and 30 Park Place, a luxury condominium in Tribeca. In October, company CEO Marty Burger told Leaders magazine that Silverstein was “looking into the outer boroughs.”

The seven parcels Silverstein now controls have addresses of 35-19 Steinway Street, 35-13 41st Street. 35-02 42nd Street, 35-22 42nd Street, 35-28 42nd Street, 35-17 42nd Street and 42-08 35th Street.

In April, Silverstein launched its first offering on the Israeli bond market, where it hope to raise $200 million backed by part of its current Manhattan portfolio. On the Far West Side in Manhattan, the company is at work on a 723-foot condominium tower at 520 West 41st Street.