The Real Deal New York

Carlyle Group fund could break Queens record with LIC rental tower deal

The fund is paying $284M for 1 QPS Tower
August 23, 2018 02:00PM

Carlyle Group’s William Conway Jr. and 1 QPS Tower at 42-20 24th Street in Long Island City (Credit: Alchetron and CityRealty)

A Carlyle Group-managed fund agreed to pay $284 million for a 45-story luxury tower in Long Island City, in what is expected to be the borough’s most expensive deal ever for a rental building.

The fund is purchasing 1 QPS Tower, according to the Wall Street Journal. The building at 42-20 24th Street contains 391 market-rate apartments and is between 98 and 99 percent occupied. Carlyle is buying it from a joint venture that includes the Hakim Organization, Property Markets Group and Howard Lorber’s New Valley.

Amenities at the building include an outdoor pool, a gym and events such as gardening classes and outdoor yoga sessions.

Will Silverman, a managing director at Hodges Ward Elliott who represented the sellers, told the Journal the deal shows that there is not a ton of pipeline following this recent surge of residential developments.

“People are treating supply like obesity and a better analogy is indigestion,” he said. “It’s Thanksgiving at 6 p.m., and everybody feels like they won’t be able to eat again, but by next Tuesday they will be fine.” [WSJ] – Eddie Small